Houston Healthcare Has Hiccups, but Outlook Remains Hale and Hardy

It’s a familiar tale in 2020—a sector or market’s meteoric trajectory at the start of the year has been recalibrated due to the COVID-19 pandemic. For Houston’s healthcare real estate sector, however, attaining those projected heights may still be within reach. Medical office building (MOB) investment sales have dwindled since the end of the first quarter all around the country and Houston was no exception. According to Colliers International data, there were nine MOB sales during the first half of the year, with only two of those occurring in the second quarter. The sector has taken an economic hit due to, for example, unexpected costs associated with combatting COVID-19 and lost revenue from deferred elective surgeries. Even so, most investors see this as a momentary slowdown and remain bullish on healthcare real estate’s long-term prospects. “Medical office has increasingly become an attractive asset class,” said Coy Davidson, senior vice president in the Houston office of Colliers International. “These assets are considered attractive even for investors that haven’t traditionally been in the medical office space.” Among the MOB investment deals during H1 2020 were the sale of the 208,000-square-foot M.D. Anderson Cancer Center in The Woodlands. Chicago-based Harrison Street Realty Capital acquired the asset for $115 million in March from The Howard Hughes Corp. Click to read more at www.rednews.com.