Healthcare Real Estate

Higher costs from COVID-19 and lower revenues from pausing profitable elective surgeries have hurt Houston-area healthcare providers, prompting them to pause real estate projects and transactions.

July saw 13 projects with a value of $100 million or more enter the planning stages, according to the Dodge report

"We're more likely to see a good recovery in the second half of this year or probably the first half of next year as the pandemic comes more under control."

"We have shied away from projects that are four or five years in length just because we don't know where the economy will stand at the end of the project."

The 34-property portfolio, purchased from Welltower, comprises 27 medical office buildings and seven senior housing communities.

Investor activity in the net lease space has remained strong for necessity-based uses, publicly-traded companies with strong financial positions, and uses such as quick-service restaurants with drive-thrus.

In one market with a research university, life science companies are aggressively seeking space.

With amenities such as a conference center and wet labs, the repurposed development Pegasus Park will open in early 2021 and feature four components: a biotech plus hub, a social impact hub and entertainment/dining venues.