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Vacancy for Houston medical office space is at 17.6%.
VACANCY AT 17.6%
Overall vacancy for Houston medical office space is at 17.6%, up 70 basis points from 16.9% this time last year. In addition, office medical space recorded 377,000 sq. ft. of leasing activity—which is comprised of both new leases and renewals—while net absorption (move-ins minus move-outs) is at negative 252,000 sq. ft. So far this year, developments under construction stand at 925,000 sq. ft. The average asking full-service rent is at $26.34 per sq. ft., up 2.0% from last year at this time, while Class A medical office space is averaging $32.52 per sq. ft., up from the prior period at $31.21 per sq. ft.
MEMORIAL HERMANN EXPANSION IN THE WOODLANDS
Memorial Hermann has topped out a nine-story medical tower in The Woodlands area in a major expansion for the healthcare system to adapt to Montgomery County’s growing population. At the time construction started, the $250 million project was the biggest institutional construction project to start work that month in the nation, according to the construction analytics firm Dodge Data & Analytics. The project is expected to be ready for patients as a Level II trauma center by Q2 2022.
THE MEDICAL CENTER OF TOMBALL
Ground has broken on the first phase of the medical office plaza in Tomball off of Highway 249 at 155 School St. Phase I of the project is a three-story, 64,395-sq.-ft. Houston medical office building that was 97% preleased prior to breaking ground. Medical buildings have been one of the high points of Houston’s office market, which has otherwise been troubled by high vacancy rates. Last month, construction crews topped out on the 10-story, 364,000-sq.-ft. Museo Medical Office Building at 1515 Fannin St. in Houston’s Museum District.
Director of Research
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