Houston's top medical institutions have joined forces to build a new research facility, which is anticipated to add 30,000 new jobs, generate a $5.2B stimulus to the city, and position Houston as an international hub for biomedical research.
This 30-acre, $1.5 billion research center, dubbed "TMC3,” is set to break ground next year. It will be shared by the Texas Medical Center, Baylor College of Medicine, Texas A&M University Health Science Center, The University of Texas Health Science Center at Houston and The University of Texas MD Anderson Cancer Center.
Fundamentals remain strong
Houston’s medical office market showed stronger positive fundamentals throughout the start of 2018 doubling 2017’s annual space demand.
Investment sales, rents up
Asking rents sustained their upward climb while multiple medical office buildings (MOB) traded hands, including a 17-building MOB portfolio (4 of which were in Houston) totaling 1.4 million sq. ft., acquired by Heitman across seven states from Bentall Kennedy on behalf of a state pension fund.
Construction pipeline most active in the southeast
The construction pipeline will likely subside, as the wave of major projects started over the past couple of years conclude. However, expect strong demographic trends, coupled with pressure for healthcare providers to cut costs and add new technologies, to fuel new projects into the pipeline. Currently 15 medical office buildings are underway or in late planning stages amounting to more than 855,000 sq. ft.