A report from brokerage Marcus & Millichap says that medical office construction is slowing as "healthcare retailers shutter."
They haven't been the only ones to notice a contraction. CBRE noted last month that investment in medical office buildings overall took a stumble in the first quarter of 2024. MOB investment fell by 21% quarter over quarter to $1.6 billion, which was down 7% year over year. That meant the MOB investment volume fell by 48% compared to the 2019-to-2023 period.
Marcus & Millichap said that there is some expansion in medical office in Texas, but that Houston alone is seeing 22% of all national delivery of medical office.
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