Nation’s Top MOB Markets Include Texas and the Midwest, and They Just Keep Growing

Medical office buildings (MOBs) have proven to be a resilient asset class through the pandemic. That’s because most tenants require these spaces to treat patients in person, providing a more stable tenant base for the asset class. And yet, these buildings are in short supply across the U.S.

Why? The buildings are more complicated to operate than a traditional office space—and more complicated to build—but investment in these facilities is growing, especially in Texas and the Midwest.

Using data provided by CRE research and listing platform CommercialEdge, 42Floors looked at the 25 biggest CRE markets across the U.S. and analyzed MOB construction activity between 2012 and 2021 to see how the asset class has gained interest for investment firms.

Overall, the top 25 medical office space markets in the U.S. grew 13% since 2012, adding more than 52.7 million square feet. Breaking it down, Los Angeles led the country for MOB square footage with more than 1,000 MOBs totaling more than 41 million square feet, which is far more than any other single market in the country, according to 42Floors.

That said, Houston ranked the second-largest MOB market in the U.S., which added 4.3 million square feet of medical office space over the decade, growing 15% to its current total of just over 33 million square feet. Dallas-Fort Worth, too, saw similar growth, based on the report, landing next on the list, adding 4.6 million square feet to its current 33-million-square-foot medical office footprint—16% growth since 2012.

Lower-tier markets with aging populations also saw some of the most growth during the decade, based on the report, like the Twin Cities. Minneapolis-St. Paul ranked No. 15 in the U.S. with 231 buildings totaling nearly 16 million square feet but has grown 24% in the last 10 years, adding three million square feet. That’s almost as much as was added in Los Angeles during the same period, which can be attributed to the city’s always-expanding 65-and-older demographic.

Finally, 42Floors found that Chicago’s market consisted of 28.8 million square feet across 427 buildings—the fourth largest MOB market. Chicago added more than 4.3 million square feet of medical office space and experienced 18% growth since 2012.

As for current developments in the Midwest, Chicago, Madison, Wis.; and Milwaukee will see three large projects delivered within the next two years:

  • Chicago’s Joan & Paul Rubschlager Building at Rush (480,000 square feet) will be completed in Q3 of 2022;
  • The Eastpark Medical Center in Madison (469,000 square feet) will be completed in Q1 of 2024;
  • ThriveOn King in Milwaukee (455,000 square feet) will be completed in Q4 of 2023.

These three buildings will add more than 1.4 million square feet of medical office space to the region, based on the report.

Putting the D in Development: CRE Cos Focus on Dallas-area for New Projects

“We are blessed and fortunate to be doing business in one of the most
desirable counties in the nation for relocation, development and acquisition!” says David Craig, Chairman and CEO of Craig International, which focuses its development in Collin County.

Perhaps the company’s most anticipated project is District 121, located along the 121 Corridor in McKinney.

“It was zoned for gas stations, fast food, small offices in the rear,” Craig
says. “We could not let that happen to this special location and the city came aboard and shared our vision for a more urban mixed use project that was of the highest quality.”

When it’s complete, the 18-acre project next to Craig Ranch will include
upscale restaurants, such as Bob’s Steak and Chop House, Mi Cocina, 400
and Zero Gradi, Common Table and more, an 8-story Class A office building,
a 102-room boutique hotel called Hotel Denizen and a .72-acre park. Click here to read more at www.rednews.com.

Public Input Wanted for Proposed Corpus Christi Tesla Plant

CORPUS CHRISTI, Texas — Nueces County is trying to add incentive for Tesla to pick a site near Robstown for a lithium plant.

The county is looking for public input in a reinvestment zone to better attract the car maker.

“We are supporting Robstown,” said Nueces County Judge Barbara Canales.

She added that county commissioners court is holding a reinvestment zone public hearing on Monday afternoon to give the public a chance to find out more about the proposed Tesla plant.

CORPUS CHRISTI, Texas — Nueces County is trying to add incentive for Tesla to pick a site near Robstown for a lithium plant.

The county is looking for public input in a reinvestment zone to better attract the car maker.

“We are supporting Robstown,” said Nueces County Judge Barbara Canales.

She added that county commissioners court is holding a reinvestment zone public hearing on Monday afternoon to give the public a chance to find out more about the proposed Tesla plant.

The $365 million facility would employ 165 people in what are described as high paying jobs, plus another 250 two-year construction jobs.

“This public hearing is the first step,” Canales said. “And I think our job, commissioner’s court, is to make certain that RISD has the tools that it needs to finish what they began when they approved their 313.” Click to read more at www.kiiitv.com.

BW Energy USA Management Inc. to Move Headquarters to 9753 Katy Freeway in Memorial City

MetroNational announced BW Energy USA Management Inc. will move its headquarters to 9753 Katy Freeway in Memorial City. The 190,000 square-foot, contemporary nine-story Class A office building recently celebrated its topping out construction milestone in August and is slated for completion in Q2 2023.

BW Energy USA Management Inc., the Houston-based oil and gas company, has leased a 68,000 square-foot office space, occupying the top three floors at 9753 Katy Freeway. Brad MacDougall and Warren Alexander represented the landlord, MetroNational, and Griff Bandy of Partners represented the tenant, who is slated for move-in September 2023.

As the newest addition to Memorial City’s evolving 10 million square-foot campus, 9753 Katy Freeway is adjacent to the reimagined Lawn at Memorial City and new luxury high-rise, The McKinley.

“BW Energy is excited to move into such an amenity-rich, first-in-class, office tower and area of town,” said Griff Bandy at Partners. “This building provides great access to Beltway 8 and I-10 for all employees and customers.”

MetroNational owns and will manage 9753 Katy Freeway. The architect of record is Kirksey. 9753 Katy Freeway is being built to MetroNational’s highest standards, tracking LEED® Silver and WELL™ Building Standards.

Berkadia Arranges Sale and Financing of Garden-style Multifamily Community in Houston

Berkadia has arranged the sale and financing of 5 Oaks, a 228-unit, multifamily community in Houston. Managing Director Jeffrey Skipworth, Senior Managing Directors Chris Curry and Todd Marix, Managing Directors Chris Young and Joey Rippel and Director Kyle Whitney of Berkadia Houston represented the seller, Haven Realty Capital, a Los Angeles-based real estate investment and management firm.

Director Johnny King of Berkadia Houston secured debt on behalf of the buyer, Lone Star Capital, a multifamily investment firm based in New York.

Located at 18203 Westfield Place, 5 Oaks offers one- and two-bedroom units that range from 464 to 1,043 square feet. Individual units feature open layouts, nine-foot and vaulted ceilings, wood-style flooring, cherry wood custom cabinetry, walk-in closets, soaking tubs, private patios and balconies and in-unit washers and dryers. Community amenities include a clubroom with social areas, a resident kitchen with a complimentary coffee bar, business center with free Wi-Fi, a 24-hour fitness center, swimming pool with a sundeck, lounges and cabanas, grilling stations, a dog park, and package lockers.

5 Oaks is in a popular enclave of North Houston that is close to CityPlace, ExxonMobil’s new global HQ campus, The Woodlands, the HCA Houston Healthcare Northwest Hospital, Bush Intercontinental Airport, Lone Star College North Harris Campus and North Houston’s only dog park in Lent Family Park.

This European-Inspired Chateau In Miami Also Comes With A Digital Twin In The Alpha City Metaverse

Metaverse real estate is becoming more sophisticated, with many crypto experts and entrepreneurs seeking to create visual experiences and lifestyle opportunities both IRL and virtually.

Miami, in particular, has made headlines for its many new-build homes with virtual NFT counterparts—and the Reflection Manor is no different. The Reflection Manor is a real-life European-style chateau being constructed in Miami Shores, located at 1275 NE 93rd Street, and will also come with a virtual replica NFT, located in the Alpha City metaverse. The architectural design is by Sakora Design.

The seller is Jorge Guinovart, a real estate developer, entrepreneur, and cryptocurrency expert, who created Alpha City. Alpha City is known as the Social Business Lifestyle Metaverse and was created to create a metaverse with an economy. It includes visual virtual experiences with social and lifestyle opportunities that help increase the value of virtual properties.

“Most NFT homes are either the home itself and not sited on a parcel of land, or they are both an NFT home and virtual land, but there is not much to explore outside of the property boundaries,” Jorge Guinovart tells Forbes. “While many virtual worlds are created by developers with a gaming background, the Alpha City metaverse was conceived with a social approach as opposed to a traditional gaming focus, which will create a broader appeal.” Click to read more at www.forbes.com.