Houston’s Medical Office Market Absorbs 662K SF in 2013
Houston medical office buildings recorded 662,000 SF of positive net absorption in 2013, the majority of which, 444,300 SF, occurred in the first half of the year. By property class, Class A posted the largest amount of positive net absorption in the second half of the year, followed by Class B and then Class C posting 51,184 SF and 30,106 SF, respectively. The citywide average vacancy rate decreased 20 basis points and the average quoted rental rate increased 0.9% to $23.19 per SF from $22.99 per SF in Q2 2013.
Houston’s medical office market is expected to benefit from both short- and long-term regional trends. Disciplined development, with only 6 new buildings added to inventory in 12 months, will relieve the pressure in filling the existing vacant lease space.
You may download and view the full report here.
You might also like: