Medical office space growth in Dallas-Fort Worth reflects the medical industry’s growth overall. The region was the leading market for medical office construction from quarter three in 2017 through quarter two in 2018, according to CBRE. Nearly one million square feet of medical office space were added during the period, with 95,000 square feet still under construction.
The CBRE report details the growth in Dallas, which was second only to Houston in medical office space between 2010 and 2018, building 2,739,006 square feet. As medical office building rents rise, national trends show an increase in lower cost and localized outpatient care facilities. Nationally, outpatient centers increased 50 percent between 2005 and 2016. The medical office space increase has mirrored population growth and capital market investment in North Texas.
“Dallas continues to be a strong market for medical office leasing and institutional ownership,” said Jordan Buis, Senior Vice President of Global Workplace Solutions for CBRE via release. “Older assets are beginning to be repurposed, and new assets are being built to suit from the ground up. However, as rents continue to rise and reimbursements continue to decline for the healthcare providers, it will be interesting to see if there is a point of inflection in the near future.”