Demand For Medical Real Estate In Austin And San Antonio Growing And Changing
Texas is home to three of the fastest-growing counties in the nation: Bexar, Travis and Williamson. In San Antonio and Austin, new residents are arriving at a rate of about 150 people per day, according to the Census Bureau’s 2014–2015 data. That growth is creating increased demand for fundamental services—notably, healthcare and medical office buildings.
According to a new CBRE Research report, MOBs provide increased rents and reliable cash flow that rival traditional office assets.
Though San Antonio and Austin are separated by only 74 miles, the two markets are managing increased demand for medical real estate in different ways. In Austin, medical office locations with convenient parking for outpatient services are a priority. The new 600k SF Dell Medical School (shown here) is being built on the University of Texas campus, a location that is universally accessible with public transportation.
Meanwhile, in an effort to reach more patients along the I-35 corridor, Christus Santa Rosa Health System recently announced a second facility in San Marcos, about halfway between San Antonio and Austin.
Demand for on-campus and campus-adjacent MOBs is on the rise in both cities.
Residential areas are seeing more urgent care facilities and specialists are choosing retail centers because of the ease of access. And aging Baby Boomers have revived the tradition of house calls.
New regulations are also having an effect: the Forest Park Medical Center brand was forced to close all its locations after a change in insurance reimbursement rules.