According to industry reports, new completions will fall short by about 1 million square feet compared to the 10-year average of 11 million square feet. This supply decline is likely to boost demand and pricing, though effects will vary by market.
There will be six new office buildings coming to Southlake, Texas, with four of them under construction.
There are four office buildings presently under construction (PHOTO CREDIT: Cody Thorn/Community Impact)
Eric Goodwin, vice president of office and industrial services for Champions DFW Commercial Realty, said there are four 8,000-square-foot buildings under construction and should be completed by the end of April. He said companies or businesses could start moving into the buildings in the fourth quarter of 2024.
“Construction on two 9,000-square-foot buildings could start as early as June,” said Jim Kelley, president of Champions DFW Commercial Realty. “This area has super freeway visibility and those are very limited, especially on the SH 114 corridor between Roanoke and Southlake.”
Goodwin said more than 200,000 cars passes that area of the building, which is located between Shady Lane and Morrison Park Drive on the frontage road, on SH 114.
“The buildings will either be for sale or lease, depending on the interest of a business,” Goodwin said.
Kelley said the goal of the office buildings will be medical-type facilities, but general office use will be considered. Kelley pointed out that the location is situated between Baylor Scott & White Medical Center in Grapevine and Methodist Southlake Medical Center off SH 114. The buildings will be opening in late 2024.
Source: Community Impact
Although 2022 was generally considered to be a tough year for healthcare real estate developers – the result of rising construction costs and inflation – the amount of medical outpatient building 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.
The newly released 2024 Outpatient Real Estate Development Report provides a wealth of information on medical office and other outpatient properties started and completed in 2023 by third party developers. The report provides a ranking of total number of projects, total square feet and total construction value for the top developers.
Source: HREI
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