New medical office space will help meet the increasing demand for healthcare services in Texas communities experiencing rapid population growth.
MARKET HIGHLIGHTS
An analysis of activity during the ten months of the year—October 2022 compared to October 2021.
Vacancy at 16.6%
The Houston market’s vacancy for medical office space is at 16.6%, up 50 basis points from last year at 16.1%. Ten months into 2022, medical office space recorded 934,000 sq. ft. of leasing activity comprised of both new leases and renewals, while net absorption (move-ins minus move-outs) registered at a positive 93,000 sq. ft., down 11% from this time last year at positive 104,000 sq. ft. So far this year, developments under construction stand at 2.2 million sq. ft., while 344,000 sq. ft. of space has been delivered.
Greenpark One changes hands
Big Sky Medical has acquired Greenpark One, an eight-story, 134,910-sq. ft. medical office building. Healthcare Realty Trust sold the property. The building’s tenants include Memorial Hermann Surgery, Texas Oncology Center, Eating Recovery Center, and DemSurgery Associates. The property is located at 7515 S. Main Street in the medical center submarket, five miles from downtown Houston.
Development
There are 14 buildings under construction containing 2.2 million sq. ft. of medical office non-owner-occupied space, excluding hospitals, which will deliver more than 417,000 sq. ft., or 19%, of the current pipeline, by the end of 2022. In 2023, 1.3 million sq. ft. is scheduled to deliver 57% of the current space under construction, with 62% of that space already spoken for. The remaining 522,000 sq. ft. underway is Horizon Tower, a 17-story life sciences building situated above a 13-story parking garage, and 15,000 sq. ft. of ground-floor retail/restaurant space scheduled to deliver in Q1 2024.
Leta Wauson
Director of Research
[email protected]
tel 713 275 9618