Colliers: Houston’s strong 2014 medical office market

HOUSTON – Houston’s medical office market demonstrated strength in 2014, according to a medical office report by Colliers International. The citywide average vacancy rate was 11 percent at year-end 2014, down from 12 percent at the end of 2013.

Sublease space has not had a significant impact on Houston’s current vacancy rates. Of the 3.2 million sf of vacant medical space on the market, only 52,500 sf is sublease space.

Nine new buildings — 353,315 sf — were added to the market during second half 2014. Currently, there are six medical office buildings totaling 371,797 sf under construction.

Colliers reports the largest medical office building currently under construction is the 150,000-sf Class A Springwoods Village Medical Office Building located in The Woodlands. The six-story building is 33.3 percent preleased and is expected to deliver September 2015.

In terms of sales activity, Colliers reported 13 Houston-area medical properties sold since July 1, 2014. The majority of the sales that occurred were patient medical centers and the average sales price was $340 per sf.

See the full Houston Medical Office Year-End 2014 report from Colliers International.