• Expanding demographics and job growth led to elevated MOB leasing activity over the last four years. The Houston market absorbed 605,000 sq. ft. of medical office space in 2016.
  • After a strong development cycle, the MOB pipeline will likely see a cooling in on-campus and campus adjacent projects. However, there is 1.3 million sq. ft. of medical office product in the pipeline.
  • Additionally, there is approximately 700,000 sq. ft. of proposed projects consisting of small, independent professional buildings.
  • Houston’s health systems serve as important barometers for overall healthcare industry sentiment and MOB demand levels as campus activity will remain an important indicator for near-term investment and overall confidence.