ANNAPOLIS, MD—The Northeast is probably not a good bellwether for determining the strength of the national healthcare construction scene. That’s because the high-barrier-to-entry region is known for tight regulatory controls, a scarcity of developable properties and pricey land costs.
However, if the current level of healthcare construction taking place there is any indication of what is taking place elsewhere, this is a boom time for healthcare real estate (HRE) construction across the country.
In its inaugural regional market report, newly launched Revista, a healthcare real estate (HRE) data services firm, found that 66 healthcare construction projects totaling $7.9 billion and 8.9 million square feet are underway or in the late planning stages in New York, Connecticut and New England.
“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.”
Annapolis, MD-based Revista, which plans to produce HRE reports for other regions as well as the country as a whole in coming months, unveiled its Northeast market report in recent weeks at a launch event in Boston. The Northeast launch event was attended by more than 40 executives from health system and physician practices as well as HRE firms.
As for the breakdown of the HRE construction projects, Revista found that 43 MOB/outpatient facility projects were underway or planned. They will total more 4.35 million square feet of space and have an aggregate value of almost $2.9 billion.
And, at a time when many healthcare observers believe that new hospital construction is, or will be, on the decline, Revista found that 23 hospital/inpatient projects with more than 4.5 million square feet of space and an aggregate value of more than $5 billion are under construction or in planning stages.
At the meeting, Revista announced that it will hold its National Data Launch & Conference on November 18 and 19 at the Sheraton Chicago Hotel & Towers.
Revista was founded by Hargrave, Elisa Infante Freeman and Hilda Flower Martin. They previously held leadership positions with the National Investment Center for the Seniors Housing & Care Industry (NIC). More information can be found at www.revista.com.
John B. Mugford is the editor of Healthcare Real Estate Insights™, the nation’s first and only publication totally dedicated to covering news and trends in healthcare real estate development, financing and investment. For more information, please visit www.HREInsights.com.