News Release: New survey reveals $7.7 billion market for outpatient medical real estate development

Revista and HREI unveil the first independently verified research project to look exclusively at the development of medical office buildings (MOBs) and other outpatient facilities

The single largest outpatient facility to open in 2016 was the $130 million, 280,000 square foot U.S. Department of Veterans Affairs (VA) Health Care Center in Kernersville, N.C., which was developed by Lendlease. (Photo courtesy of Lendlease. Copyright Sarah Mechling)

ARNOLD, Md., and MINNETONKA, Minn., March 29, 2017 – How big is the market for the development of medical office buildings (MOBs) and other outpatient facilities, and who are the most active developers?

In the first independently verified research project to look exclusively at those questions, Revista and Healthcare Real Estate Insights (HREI) found that outpatient medical real estate development projects totaling nearly $7.7 billion in construction value and 19.4 million square feet were completed in 2016. Another 17.3 million square feet of outpatient projects with a value of almost $6.5 billion were started.

The top five outpatient developers in terms of square footage started or completed last year were Pacific Medical Buildings (PMB) NexCore Group, Trammell Crow Company, Duke Realty and Concord Healthcare.

Although other surveys have for many years reported on total healthcare real estate (HRE) development activity, most have not differentiated between inpatient projects, such as acute care hospitals, and outpatient projects, such as MOBs. As a result, it was not possible to pinpoint the size of the outpatient development market or to provide meaningful rankings of the largest outpatient developers.

This new HRE Outpatient Development Survey from the research firm Revista, developed in collaboration with HREI magazine, remedies those shortcomings – and more.

“With more and more healthcare being delivered in an outpatient setting, it has grown increasingly important to be able to distinguish between the levels of inpatient and outpatient healthcare real estate development,” says John B. Mugford, editor of Minnetonka, Minn.-based HREI. “This more sophisticated research project answers key questions about the outpatient medical real estate development market in a more meaningful way.”

“The Revista-HREI survey is the first to leverage the sector expertise and reach of HREI, combined with the comprehensive, verified data produced by Revista,” explains Mike Hargrave, a co-founder and principal of Arnold, Md.-based Revista. “Revista tracks outpatient development activity independently, so we were able to verify the data contributed by the survey respondents. We also broke out the data in a variety of interesting new ways, such as comparing the volume of third-party-developed projects vs. self-developed projects, on-campus or affiliated projects vs. unaffiliated off-campus projects, and more.”

For the new HRE Outpatient Development Survey, the two sector news and information leaders collected and verified data on outpatient development projects started or completed in 2016 that exceeded $2.5 million in value and that included at least 5,000 square feet of new or renovated space. Data was gathered using surveys completed by the developers, as well as other sources.

A total of nearly 35.7 million square feet of outpatient real estate was started or completed in 2016. Of this amount, 10.9 million square feet (34.2 percent) was started or completed by a third-party developer.

The top five outpatient developers of projects started or completed in 2016 in terms of square feet were:

Developer Number of Properties Square Feet Construction Value
Pacific Medical Buildings 6 465,000 $311,000,000
NexCore Group 6 461,189 $165,150,000
Trammell Crow Company 9 434,081 $148,520,000
Duke Realty 6 385,060 $116,760,000
Concord Healthcare 5 383,000 $129,900,000

For purposes of the survey, outpatient projects include all medical office buildings (MOBs), outpatient surgery centers, dialysis centers, clinics, freestanding emergency rooms/departments, imaging centers, urgent care centers, retail medical buildings and other purpose-built medical buildings where outpatient care is provided.

HREI magazine is featuring highlights from the survey in the cover story of its March edition, which is now available. To read the cover story, please click here or visit

The full outpatient medical real estate report is available exclusively to Revista subscribers. Please contact Mike Hargrave at 443-949-8794 or for more information or to subscribe.

About Revista

Revista serves as a valuable, one-stop industry resource for healthcare and real estate organizations; providing comprehensive, unbiased medical real estate-focused data; healthcare industry statistics, market reports and other resources; as well as executive networking events with a focus on data.

Headquartered in Maryland, Revista was founded by Elisa Infante Freeman, Mike Hargrave and Hilda Flower Martin. They previously held leadership positions in a seniors housing industry organization, whose mission is to advance the quality of senior housing and care through the research, resources and events they provide. These Principals have decades of experience in healthcare real estate. They collaborate with an industry-leading advisory board and with founding partners that are well-known companies in the healthcare real estate industry. For more information, please visit

About Healthcare Real Estate Insights

Launched in 2003, Healthcare Real Estate Insights (HREI) was the first and remains the only national magazine entirely dedicated to covering healthcare real estate (HRE) development, financing and investment. This monthly, national, business-to-business print and digital magazine offers sophisticated players the most comprehensive coverage in the industry available anywhere.

HREI’s other HRE sector innovations include the HREI Insights Awards (introduced in 2013), the first and only comprehensive awards program recognizing excellence in HRE development and executive leadership; the HREI Resource Guide (launched in 2008), the first and only annual directory of HRE services; and HREI’s companion website,, which has been redesigned and vastly expanded during the past four years with more than 15 years of content, including nearly 4,500 articles, news releases, property listings and other postings, and is the hub for HRE news and information.

For more information on HREI products and services, or to subscribe or advertise, please visit us at

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