Report estimates $16.1 billion hospital construction projects to start during the first half of 2016, up 44% from the first 2 quarters of 2015
Lead by an ongoing drive in new medical office building (MOB) construction, Health Facilities Management reports that health care facilities overall are geared for continued growth in 2016 according to Revista, a leading source of data on health care property and construction.
A report released by Revista shows that the health care real estate construction pipeline is active and growing with $97.1 billion in projects either under construction or in late planning stages by the end of 2015. This represents an increase of 12 percent from the $86.7 billion under construction or in planning by midyear 2015.
Revista’s 2015 Year End Medical Real Estate Construction Report for the U.S. covers hospital and MOB construction projects that are new, expansions or replacements, greater than 7,500 square feet and $5 million in value.
Overall, health care is projected to complete construction on 43.7 million square feet of space in 2016, including hospitals, MOBs and urgent care centers, which is comparable to 2015’s figure of 43.6 million square feet. Overall, Revista is expecting $16.1 billion of hospital construction projects to start during the first half of 2016, up 44 percent from the first two quarters of 2015 and up 101 percent from the $8 billion started in 2014.
The vast majority of hospital projects are expansions, according to Revista. Of the 691 hospital projects under construction across the nation, 519, or 75 percent, are expansion projects. The remaining 25 percent are new hospitals and replacement hospitals, the firm reports.
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