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Houston Healthcare Real Estate Report - Q2 2018
Houston Healthcare Real Estate Report - Q2 2018
Forecast Report
HOUSTON | HEALTHCARE
Mid-Year 2018
researchers and industry experts together on a collaborative Average $24.70 $25.21 $24.96
30-acre campus. Groundbreaking for TMC3, the new campus, is
expected to begin in 2019 with completion slated for 2022 adding Class A $28.71 $29.28 $29.07
approximately 1.5 million square feet of research space to the TMC Class B $24.16 $24.62 $24.83
campus footprint.
system in the U.S. that is going to continue its shift to outpatient 1,000
Millions
settings. 2017 was a record year for MOB investment volume 900
nationally and the momentum has continued into 2018. 800
700
Houston with its reputation as a dynamic healthcare city, with a 600
stable economy and growing population, remains a favored target 500
market among healthcare real estate investors. 400
300
Landmark Sale 200
100
In July, LaSalle Investment Management acquired The Memorial 0
Hermann Medical Plaza located at 7400 Fannin in the Texas Q2 '14 Q2 '15 Q2 '16 Q2 '17 Q2 '18
Medical Center from a joint venture comprised of Misher Healthcare
and Memorial Hermann Healthcare. The 28-story, 510,000
square-foot, Class A+ medical office building in the Texas Medical Average Price Per SF
Center reportedly traded for a record-setting $405 million, which Houston U.S.
is believed to be the highest amount ever paid for a single medical 600
office building property in the U.S.
500
Other Notable Houston MOB Sales in the first half of 2018 include:
400
>> Heitman acquired a 17-building MOB portfolio from Bentall
Kennedy which included four Houston area medical office 300
buildings totaling 459,544 square feet, included in the sale were;
Memorial Hermann Katy Medical Plaza 1, Memorial Hermann Katy 200
Medical Plaza 2, Memorial Hermann Sugar Land Medical Plaza 1,
Memorial Hermann Sugar Land Medical Plaza 2. 100
>> Virtus Real Estate Capital based out of Austin acquired 251 & 0
253 Medical Center Blvd (86,297 SF) in Webster, Texas. Q2 '14 Q2 '15 Q2 '16 Q2 '17 Q2 '18
>> IRA Realty Capital acquired the 63,090 square foot, Katy Medical
Arts Center in Katy, Texas.
2 Houston Research & Forecast Report | Mid-Year 2018 | Healthcare | Colliers International
and spoke model in healthcare, which puts hospitals at the center Job Growth & Unemployment
of care delivery, is changing to focus more on ambulatory care. (not seasonally adjusted)
to deliver 102,000 square feet to the in early 2019. The five-story 8.00%
$25.00
Class-A medical office in West Houston building broke ground 65%
pre-leased. $24.00 6.00%
$20.00 10.00%
3 Houston Research & Forecast Report | Mid-Year 2018 | Healthcare | Colliers International
Willis
149 105 Lake
Conroe
Cleveland
105
Conroe 105
149
Tomball
aller Spring Dayton
Hockley Kingwood
Houston MSA Health Care
Cypress Atascocita
IAH
Humble >> 128 Hospitals
Lake
Houston >> 18,681 Hospital Beds
Crosby
>> 16,070 Licensed Physicians
Mont Belvieu
>> 299,600 Health Care & Social Assistance Jobs
Katy CBD
>> 3.9% Annual Employment Growth
rookshire
Ship 330
Channel
Pasadena
La Porte
146
Sugar Land HOU
35
EFD
League City
Alvin
Texas
Texas Medical Center
City Map
Hitchcock
4 Houston Research & Forecast Report | Mid-Year 2018 | Healthcare | Colliers International
Texas Medical Center Update
The Texas Medical Center Corp, the operator of the largest medical center in the world, announced plans for TMC3, a $1.5 billion
expansion. Ground breaking of the collaborative research campus is expected to begin in 2019 with a 2022 estimated completion date,
and involve five founding institutions seeking collaboration between major corporations and research universities. The campus is expected
to create 30,000 new jobs and has an estimated economic impact of 5.2 billion dollars annually.
TMC is home to
the World’s Largest
Children’s Hospital,
Texas Children’s
Hospital & the
World’s Largest
Cancer Hospital,
MD Anderson
Cancer Center.
5 Houston Research & Forecast Report | Mid-Year 2018 | Healthcare | Colliers International
Houston Healthcare Industry
In The News
According to the 2018-2019 report from the Center for World
University Rankings, six Houston-area universities and medical
schools ranked in the top 500 universities in the world.
For details, visit http://cwur.org/2018-19.php
CWUR
22.6M SF
0.4M SF
10.0M SF 7.1M SF