Houston Healthcare RE in 2018: Continued Development, Steady Pricing

In 2017, Houston healthcare real estate was marked by an increase in new construction and vacancy. In Q4 2017, 110,300 square feet of space was under construction, while the vacancy rate was at 11.6% and net absorption stood at 40,900 square feet, according to Colliers International’s Houston office.

According to Colliers’ Beth Young, 2018 will bring more of the same, with no real surprises. The trend is for healthcare to continue expanding to outer submarkets, with “fewer overnight beds and growth in cardiac surgery, operating rooms, ICU beds and health system-sponsored clinics in locations nationwide,” she wrote.

She also noted that retail settings near residential communities might have healthcare real estate, including urgent care, medical office buildings, imaging centers and post-acute care facilities. “Some larger healthcare systems will provide multiple services in one location near homes . . .” she added. In the meantime, Young continued, look for quality investments in the sector to be priced competitively.

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