New state-of-the-art developments put Houston on the global life science and Innovation map.
MARKET HIGHLIGHTS
VACANCY AT 16.3%
Overall vacancy for medical office space in the Houston market is at 16.3%, up ten basis points from last year at 16.4%. Four months into 2022, medical office space has recorded about 426,000 sq. ft. of leasing activity comprised of both new leases and renewals, while net absorption (move-ins minus move-outs) registered at a positive 138,000 sq. ft., improved year over year from a negative 91,000 sq. ft. So far this year, developments under construction stand at 1.1 million sq. ft., while 208,000 sq. ft. of space has been delivered.
CENTENNIAL TOWER IN TEXAS MEDICAL CENTER
Houston Methodist Center has started site preparations for a 26-story tower within the Texas Medical Center. The $1.4 billion tower, dubbed Centennial Tower, will replace Houston Methodist’s main building at 6565 Fannin St. Plans have it more than double the size of the existing facility. Completion is set for 2027.
FIRST PHASE OF LEVIT GREEN TOPPED OUT
Phase one of the development, which broke ground in October 2021, involves a five-story, 294,000-sq.-ft. office building and lab at 3131 Holcombe Blvd., just east of the Texas Medical Center. Levit Green, a 53-acre complex, puts Houston on the global life sciences map. The building is meant exclusively for life sciences research and includes several features that set it apart from traditional office space, including a 100% redundant backup power system. Hines is currently planning the next phase of Levit Green’s development.
Leta Wauson
Director of Research
[email protected]
tel 713 275 9618