Number of medical office buildings grew more than 50% from 2005 to 2016 — 6 insights

As demand for outpatient care continues to rise, developers are scrambling to build medical office buildings, according to a CBRE report.

What you should know:

1. The Dallas/Fort Worth, Texas area led the nation in completed medical office building construction from the third quarter of 2017 to the second quarter of 2018. The boom in new medical office buildings is due to population growth.

2. DFW also led the nation in medical office construction deliveries, with 954,325 square feet of space delivered during the same time period. DFW has 95,000 square feet still under construction.

3. DFW's delivery numbers continue to skyrocket. From the first quarter of 2010 to the second quarter of 2018, DFW delivered 2,739,006 square feet of new medical office space, which was second only to the Houston market.

4. On a national level, medical office building rents are also rising. The market hit its highest point in the second quarter of 2018, increasing 1.4 percent year over year to $22.90 per square foot.

5. Despite rising rents, health systems continue to flock to the outpatient space in droves. From 2005 to 2016, the total number of outpatient centers grew more than 50 percent to approximately 41,000 centers.

6. Outpatient center employment has doubled since 2003. In October 2018, the employment rate grew 3.5 percent year over year, compared with the healthcare sector's 2 percent overall growth. 

More articles on surgery centers:
USPI 2018 revenue up 7.5% to $2B: 5 things to know
River North Surgery Center plans $15.6M ASC – 3 details
25 new ASCs in February

© Copyright ASC COMMUNICATIONS 2020. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.


Featured Webinars

Featured Whitepapers