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Cover Story: Who are the biggest outpatient HRE developers?

PMB, Duke Realty and NexCore Group led the way as 35.7 million square feet of MOBs and other outpatient healthcare real estate projects were started or completed last year, according to a new survey from Revista and HREI

By John B. Mugford

The year 2016 was a banner one for the development of medical office buildings (MOBs) and other outpatient facilities, with a total of 35.7 million square feet of projects being started or completed, according to a newly released survey conducted by two firms dedicated to reporting and researching HRE sector news and information.

In what is believed to be the first independently verified research project to look exclusively at MOBs and other outpatient facilities, Revista and Healthcare Real Estate Insights found that outpatient healthcare real estate (HRE) 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 developers of MOBs and other outpatient facilities in terms of square footage started or completed last year were, in order,
Pacific Medical Buildings (PMB) LLC, NexCore Group LP, Trammell Crow Company, Duke Realty Corp. (NYSE: DRE) and Concord Healthcare Development Inc. Duke Realty was No. 1 in projects started and NexCore was tops in projects completed. (Please see chart for details.)

Emphasis on MOBs and other outpatient projects

As noted above, the new Outpatient HRE Development Survey was conducted by Arnold, Md.-based Revista, a research firm that compiles data for the HRE sector, in collaboration with Minnetonka, Minn.-based HREI, a print and digital magazine that chronicles news and events in the sector.

The purpose of the survey – which executives of Revista and HREI promise will now become an annual event – is to provide a comprehensive look at the outpatient HRE development market and to identify the leading developers in the space, which includes MOBs, ambulatory surgery centers (ASCs), clinics, freestanding emergency departments (FEDs), imaging centers, urgent care centers (UCCs), retail medical buildings and other purpose-built medical buildings where outpatient care is provided.

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