Introduction to Medical Offices
When most people think of real estate, they think of single-family houses in the suburbs. Sometimes they think of apartment buildings. There are others who think of commercial buildings in downtown metro areas, including office buildings and skyscrapers. But there is an entire other class of real estate – the medical office building sector – that has been making waves since the Pandemic of 2020.
The medical sector, an incredibly important and rapidly changing field in America, requires top-notch medical offices that cater to the growing needs of an aging American population. A new 42Floors report discusses the extensive medical office space developments in the country, and highlights the significant growth that is coming in this area. In this blog post, TalentWoo discusses the report’s findings and offers a glimpse of the trends shaping the medical office space industry today.
Key Concepts
- The largest medical office building delivery in 2023 is the O’Quinn Medical Tower in Houston, spanning 400,000 square feet over 12 floors.
- Houston has the highest concentration of medical properties among the 20 largest nationwide, with four in total.
- Columbus, Ohio, and St. Louis will have the second and third-largest medical properties with a 2023 delivery date.
- Texas has the most properties in the top 20 with six, followed by New Jersey, Florida, and Kentucky with two each.
Main Ideas
According to the report, the largest medical office space development in the US is presently the Texas Medical Center in Houston, Texas. This impressive medical center spreads over 50 million square feet and houses over 60 different medical establishments, including hospitals, research facilities, and medical schools. This development showcases the scale and significance of the healthcare industry in the United States.
The report also highlights other significant developments such as the Las Vegas Medical District in Nevada and the Vanderbilt Medical Center in Nashville, Tennessee. The Las Vegas Medical District covers 214 acres and comprises various medical facilities, from hospitals to outpatient clinics. On the other hand, the Vanderbilt Medical Center encompasses over 4.6 million square feet of medical facilities, making it one of the most significant medical office space developments in the country. Clearly
One of the major trends identified in the report is the growing popularity of medical office spaces in urban areas. This trend is due to the proximity of these spaces to hospitals and other medical facilities, making it easier for healthcare professionals to collaborate and for patients to access the care they need. Increasing collaboration and co-working among medical professionals and healthcare organizations have made urban medical office spaces increasingly popular.
Another trend identified in the report is the rise of medical office space developments in suburban areas. This trend has occurred due to the aging population and the increasing demand for healthcare services in suburban areas. The elderly population requires more healthcare services, and healthcare organizations are expanding their services to meet this demand.
The report also notes that the growth in the medical office space market is driven by several factors, including the aging population, advances in medical technology, and an increase in chronic health conditions. As the population ages, the demand for healthcare services continues to rise, and healthcare organizations need to expand their services and facilities to meet this demand. Furthermore, advances in medical technology have resulted in new treatments and therapies, opening up new opportunities for medical professionals and healthcare organizations.
The report’s findings have significant implications for the future of healthcare in the United States. As the demand for healthcare services continues to increase, healthcare organizations must continue to expand their services and facilities, creating new job opportunities for medical professionals and support staff and positively impacting the economy. Furthermore, the growth of medical office space developments in urban areas will lead to more collaboration and innovation, resulting in new and improved healthcare treatments and services.
Recruiting
With the increase of medical office building (MOB) construction comes the corresponding need for staffing and recruiting to ensure smooth operations and continued growth for medical office REITs. TalentWoo, a recruitment agency with experience hiring for publicly traded medical office REITs like Healthcare Trust of America, can provide support to these growing companies. As office REITs continue to expand and develop, many have come to depend upon TalentWoo’s real estate recruiters to help them with their staffing and growth needs. Contact us today to discuss our executive search services or outsourced recruitment process offering.