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Healthcare Real Estate A Bright Spot In Houston's Sluggish Market

Thanks to demographic changes and first-rate biotech research happening in our own backyard, healthcare real estate is thriving in Houston. Join us at Bisnow’s 6th Annual Healthcare Real Estate event to get the scoop on why this sector is going gangbusters. Read on for a preview from one of our expert panelists, Transwestern national healthcare director Eric Johnson.


Houston has experienced positive absorption of medical office space for four consecutive years and 2016 is off to another fast-paced start, Eric tells us. The majority of transactions continues to be outpatient services within the outlying communities. Eric's also seen some consolidation of multi-specialty physician groups into more modern and efficient facilities. Eric notes we have talented healthcare architects in Houston, and medical office and clinical design has made significant strides since the ACA was passed. 

Healthcare real estate might be recession-proof, but it's not reform-proof. The presidential election could have an effect on the ACA, and thus on healthcare real estate. If there are additional modifications to federal reimbursement programs, it could slow some of the growth we have seen in the last two years. Healthcare reform tends to slow leasing velocity and long-term clinical planning as hospitals and physician groups learn the new landscape, Eric says.


We have a lot to be excited about in our city, Eric says. We have the University of Texas expanding its presence, MD Anderson expanding its reach into the suburban communities in big way, and the TMC 3 will finally bridge the gap between nonprofit research and the for-profit life science and pharmaceutical industry.

Eric is watching the success of Houston’s new $2B 30-acre campus at the Texas Medical Center. Companies like AT&T and Johnson & Johnson have invested millions in biotech in this city. They're following the research and data, Eric says. Houston has the world’s largest medical center with a very diverse patient base. The leadership within the TMC is committed to developing new facilities to collaborate with for-profit life science institutions and startups to expand the life science industry and create jobs here in Houston.    


The State of Texas is chipping in through CPRIT (Cancer Prevention & Research Institute of Texas), a $3B fund that awards grants to cancer research and prevention programs and services in Texas. These combined efforts have allowed Houston life science companies to organically grow and flourish.

Meet Eric and other industry leaders at Bisnow’s 6th Annual Healthcare Real Estate event at the Hyatt Regency Houston Galleria on April 7. Learn about the fundamentals that keep this sector strong and growing and the new developments that are keeping Houston ahead of the curve. Register here.