Revista report shows project starts fell 38.8%; also lists the largest developers of 2023
By John B. Mugford
The square footage of projects started fell 33.6 percent in 2023, according to Revista’s annual development report.
Although 2022 was generally considered to be a tough year for healthcare real estate (HRE) developers – the result of rising construction costs and inflation – the amount of medical outpatient building (MOB) space started or completed fell only 1.1 percent from the previous year.
That was indeed a bit of a surprise last year when the Arnold, Md.-based research firm Revista issued its 2023 Outpatient Real Estate Development Report, which indicated that the volume of MOB projects started or completed in 2022 totaled 44.9 million square feet in 2022, down slightly from the 45.4 million square feet of space started or completed in 2021.
However, it looks as if increasing costs, rising interest rates, harder-to-obtain debt and financially challenged health systems caught up with the MOB development business in 2023.
According to Revista’s 2024 Outpatient Real Estate Development Report, released this week, the total amount of MOB space started or completed in 2023
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