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HOUSTON-The medical office sector here saw another quarter of growth in Q2, posting nearly 150,000 square feet of positive net absorption. Total positive absorption for the year is now almost 300,000 square feet, and almost one million square feet in the past 18 months, according to a second quarter report released recently by Grubb & Ellis.

Vacancy also fell during the quarter by 30 basis points to 11.5%. Henry Hagendorf, VP with the company’s Healthcare Practice Group, tells GlobeSt.com that the success of the sector can be attributed to the massive residential growth in the suburbs. “The city has been growing in several directions, with hospital systems that have built in the past two years along major freeways. There’s also been a trend for a number of years toward new standalone buildings such as surgical centers, taking services out of the hospitals,” he says.

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