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Houston records 1 million-plus sq. ft. of Medical Office leasing
VACANCY AT 16.9%
Overall vacancy for medical office space in the Houston market is at 16.9%, up 30 basis points from 16.6% this time last year. Houston medical office space has recorded more than 1.3 million sq. ft. of leasing activity year-to-date—which is comprised of both new leases and renewals—while net absorption (move-ins minus move-outs) registered at positive 73,000 sq. ft. So far this year, developments under construction stand at just over 1.0 million sq. ft., and 209,000 sq. ft. has delivered. The average asking full-service rent is at $25.69 per sq. ft., down slightly from last year at this time, while Class A medical office space is averaging $30.30 per sq. ft., down 2.7% from the prior period at $31.15 per sq. ft.
EXPANDING HEALTHCARE GROUP
In November, Houston’s Kelsey-Seybold opened a 19,137-sq.-ft. location in the Gulfgate Center around the Houston Ship Channel, supplementing existing facilities in Baytown, Pasadena, and the North Channel area. The company has opened five new locations in 2021, with more planned in the near future—including the currently under construction five-story, 126,113-sq.-ft. Class A medical office building in Memorial Villages with room for up to 50 providers. Additionally, it is expanding its main campus by 20,000 sq. ft. near West University at 2727 Holcombe Blvd., according to local filings.
MORE MEDICAL OFFICE SPACE IN THE WOODLANDS
Memorial Hermann Medical Group has signed a 20,000-sq.-ft., build-to-suit lease for a new Memorial Hermann Primary Care Clinic in the Research Forest area of Shenandoah. Construction is also beginning on the new Creekside Park Medical Plaza office building, a two-story, 33,745-sq.-ft. Class A medical office building in The Woodlands, a 28,500-acre master planned community located north of Houston.
Director of Research
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