BOSTON—There are currently $7.9 billion in healthcare construction projects in the ground or in late planning totalling 8.9 million square feet in New York, Connecticut and the remainder of New England, according to Revista, a real estate data information firm.
The inaugural report authored by the Annapolis, MD-based firm also noted that the Northeast construction pipeline incudes 43 medical office building/outpatient facility projects totalling more than 4.35 million square feet with a total value of almost $2.9 billion, and 23 hospital/inpatient projects totalling more than 4.5 million square feet with a total value of more than $5 billion.
“The level of healthcare real estate construction activity seen in the Northeast bodes well for the rest of the country,” says Mike Hargrave, one of Revista’s founding principals. “Although we don’t have national data yet, we would not be surprised to see similar levels of activity in other parts of the nation.”
The report also detailed the scope of the healthcare real estate market in the Northeast, which states that there are 473 general acute care hospitals, 4,491 medical office buildings and 2,105 other healthcare buildings.
Revista also notes that most medical facilities in the Northeast region are affiliated with a health system. Forty-four percent of MOBs are affiliated with a hospital, 36% of MOBs are affiliated with a health system and 68% of hospitals are affiliated with a health system.
The Northeast market report was unveiled May 20 at an invitation-only launch event at the offices of law firm Foley & Lardner LLP in Boston. HRE data for other regions and the United States as a whole will be released at a later date.