Hospitals Target Outlying Areas for New Campuses

Udstuen says interest by regional health systems and private investment will spur MOB development.

HOUSTON—In a city with a heavy focus on healthcare, medical research and biotech, the medical office sector is a vital indicator of the health of commercial real estate in the overall economy, but has gone largely untracked as a sector itself. With the assistance of local medical office building experts, CBRE research has tailored a report combined with a granular analysis that offers a detailed look into Houston medical office market trends.

Healthcare employment grows by 42% in a decade, fueling medical office building occupier demand. Through most of the past decade, healthcare employment and medical office building inventory growth were converging. However, in the last 12 months, employment growth outpaced medical office building inventory, signifying a need for new development.