South Carolina MOB Market Continues Expansion Despite Economic Headwinds
The medical office market in South Carolina continues to experience steady expansion driven by above average population growth and societal aging, according to Colliers‘ 2022 Q4 Medical Office South Carolina Report.
Healthcare providers are consistently improving their network of medical providers in an effort to better connect with patients, explains the report, so competition among these healthcare providers guarantees activity will continue despite inflation and rising interest rates. In addition, non-clinical providers continue to look at methods to trim costs by relocating away from hospital campuses.
During the fourth quarter of 2022 South Carolina posted net of absorption 40,793 square feet, construction continued to be limited and investors display an attraction to medical buildings due to market fundamentals.
The report shows South Carolina’s medical office vacancy rate sitting at 4.0% in the fourth quarter of 2022, with overall gross rent sitting at $26.79 per square foot.