posted on February 25, 2011 00:31
The Austin medical office market saw a flurry of activity late last year, with vacancy rates falling 12 percent year-over-year, according to a new report from commercial real estate brokerage Site Solutions Inc.
The Medical MarketScope report released this week attributed increased leasing activity to health care companies expanding and corporate relocations to Austin, including growing St. Jude Medical Inc. and transplant Hanger Orthopedics Co. The document is in line with brokers reports mid-last year, who said medical office space is the strongest niche in Austin.
In the last six months of 2010, developers broke ground on two medical office buildings totaling about 106,000 square feet near St. David’s North Medical Center. Companies leased about 149,259 square feet of medical office space in the last half of 2010, up from about 111,047 square feet contracted in January through June last year. At the same time, rental rates for Class A space held steady at about $20-$26 per square foot, excluding expenses.
St. David’s HealthCare South Medical Center is expected to soon add 100,000 square feet, according to the report, and Scott & White unveiled plans to increase its Round Rock hospital by 58,000 square feet.
The Austin Business Journal reported last year a list of developers planning medical projects throughout Austin. Read that story here.
2/3/11, Austin Business Journal