The Dallas-Fort Worth healthcare market remains
hot, reported the experts at the North Texas Hospital,
Outpatient Facilities and MOB Summit, held in Dallas in June.
“Too hot,” said Wes Huff, Vice President of Real Estate, Baylor
Scott & White.
Huff and others noted that while anything can
change in a moment, physicians are increasingly forming
physicians groups to offset reimbursement pressures and reduce
the costs of running their businesses—and they’re looking to
construction, real estate and development experts to guide them
in this process.
According to a
recap of the event organized by
SquareFootage and co-hosted by the Health Care Institute of IFMA
and HCI North Texas, physicians are realizing there’s power in
numbers. However, most have never built medical office
buildings, making the risk high due to lack of experience. By
working with a knowledgeable team that knows the process can
minimize that risk.
The experts at a session on factors driving the North Texas
healthcare real estate market commented that “the sweet spot” is
about 6,000 square feet for medical buildings for smaller
physician groups, and up to 30,000-40,000 square feet for
larger, multi-specialty groups. They also advised encouraging
smaller practices to consider larger buildings.
“If you develop a 6,000-square-foot building,
the market is good but not as good as if you had a larger
building with other investors,” commented Rich Couturier, Vice
President of Development, Ryan Companies.
Experts at the event also commented on
hospital real estate trends. They predict that over the next 30
years, as the 85+ population grows, the market will see more
facilities that cost less per night for a patient stay—think a
night of senior housing for $150 to $200 a night, versus a
$20,000 hospital stay.
In the meantime, expect the trend toward more
ambulatory, outpatient services, with greater construction of
micro-hospitals, day facilities and short-stay facilities. Keep
in mind, designers caution—this will mean that medical buildings
will become far more complex as they take on additional services
once found only in the hospital.
more information, read the full review at