Texas’ booming population leads healthcare systems to announce more expansions.
An analysis of activity during the eleven months of the year—November 2022 compared to November 2021.
Vacancy at 16.7%
The Houston market’s vacancy for medical office space is at 16.7%, up 70 basis points from last year at 16.0%. Eleven months into 2022, medical office space recorded 1.1 million sq. ft. of leasing activity comprised of both new leases and renewals, while net absorption (move-ins minus move-outs) registered at a positive 122,000 sq. ft., down 41% from this time last year at positive 207,000 sq. ft. So far this year, developments under construction stand at 2.2 million sq. ft., while 415,000 sq. ft. of space has been delivered.
Development
Pisula Development has completed Vision Park Medical Office Building, a 56,100-sq. ft. healthcare project in Shenandoah. The three-story, $15.1 million building sits on 3.2 acres. The building is currently 80% leased to tenants such as Physicians Group of The Woodlands and Woodlands Center for Specialty Surgery. In addition, Tannos Development Group has topped out a four-story, 106,000-sq. ft. medical office building in Friendswood. The $23 million downtown building will be ready for buildout by April.
MyCare Medical acquired Jacinto Medical Group
The primary care organization is expanding into Texas by buying a multispecialty physician group with four locations in the greater Houston area. MyCare Medical bought Jacinto Medical Group, which has clinical locations outside Houston and near the Texas Gulf Coast. Jacinto Medical Group has three locations in Baytown and one in La Porte. completion in 2024.
Leta Wauson
Director of Research
[email protected]
tel 713 275 9618