Outpatient healthcare real estate development projects totaling more than 34 million square feet were started or completed in 2017. That’s according to the second annual Outpatient Healthcare Real Estate Development Survey from the research firm Revista.
Launched last year and developed in conjunction with the Healthcare Real Estate Insights media organization, the report is the first – and remains the only – independently verified research project to look exclusively at the annual level of outpatient HRE development.
The new report found that 2017 saw a slight drop in the development of medical office buildings and other outpatient facilities from a year earlier. A total of 34.08 million square feet of projects were started or completed last year, down slightly from the 35.69 million square feet of projects started or completed in 2016, a decline of 4.6 percent.
“Outpatient construction starts have come off their highs set in 2015 but are expected to rebound in 2018,” says Revista Co-Founder and Principal Mike Hargrave.
“As the report found, the amount of square footage started or completed last year was down compared to 2016 and was also slightly less than in 2015,” adds HREI Editor John B. Mugford.
“Does that signal a trend of slowing U.S. outpatient healthcare real estate construction? Not necessarily. Although construction starts were down last year, the decline was not dramatic and, anecdotally, the pace of development so far this year appears to be quite robust.”
According to the Revista report, the top 10 outpatient HRE developers in terms of square footage started or completed last year were:
- MedCraft Healthcare Real Estate
- Healthcare Realty Trust
- NexCore Group
- HTA Development
- Realty Trust Group
- Rendina Healthcare Real Estate
- Ryan Companies
- Meadows & Ohly
- Concord Healthcare
In addition to a list of the largest outpatient HRE developers, the new Revista report breaks out the data between on- and off-campus development, and between projects developed by healthcare providers (self-developed) and those developed by third-party developers. It also reports on the number of projects developed, and offers comparative data from 2015, 2016 and 2017 in terms of square footage, number or projects and construction value.
For purposes of the survey, outpatient projects are defined as all MOBs, outpatient surgery centers, dialysis centers, clinics, freestanding emergency rooms/departments, imaging centers, urgent care centers, retail medical buildings and other purpose-built medical buildings where outpatient care is provided.
For the new HRE Outpatient HRE Development Survey, Revista and HREI solicited, collected and verified data on outpatient development projects started or completed in 2017 that exceeded $2.5 million in value and that included at least 5,000 square feet of new or renovated space. Data was gathered using surveys completed by the developers, as well as other sources.