- According to CBRE, medical outpatient building (MOB) transaction volume increased 32% in Q2 with $2.2 billion in investments. Phoenix was the top market in terms of investment volume, followed by Los Angeles and Washington, D.C. The average MOB cap rate was 7.4%. The average sale price per square foot was $277, which is 40% more than the sale price per square foot for traditional office buildings.
- BayCare Health (FL) is moving forward with plans to transform a 36-acre office park in Tampa, FL, into an academic health and research corridor. BayCare intends to make its first investment in the office park by constructing a 13,000-sf conference center that is expected to cost $2.6M.
- Encompass Health is opening a new 50-bed rehabilitation hospital in Sumter County, FL. The nearly 55,000-sf hospital is the third of five Florida hospitals the health system plans to launch this year. Encompass Health also filed a letter of intent to build a $69.5M, 40-bed rehabilitation hospital in Clarksville, TN. The announcement comes on the heels of several other hospital providers announcing new hospital projects in Clarksville.
- HSHS St. Mary’s (WI) provided updated renderings of how the health system plans to reimagine two of its Green Bay, WI, hospitals. The renovation projects are expected to cost $270M and the work is projected to begin during the summer of 2026.
- The City of Charleston Planning Commission unanimously approved a recommendation to grant the Medical University of South Carolina (MUSC) certain zoning changes in order to support MUSC’s new Innovation District. The zoning changes will also need approval by the City Council on September 23 before the changes are final. MUSC recently announced plans to develop an Innovation District using 60 acres in Charleston.
- Texas Health is set to build a new hospital on its health and wellness campus in Willow Park, TX. The hospital is expected to open in 2028 and is part of the health system’s expansion initiative across North Texas.
- Chesapeake Diagnostic Imaging Centers (CDI) is asking the North Carolina Supreme Court to clarify the meaning of “substantial prejudice” in certificate-of-need disputes. CDI lost certain lower court challenges over an MRI approval granted to competitor Sentara. CDI argues the state’s decision amounted to “agency error” that led to “substantial prejudice”.
- University of Iowa Health Care is delaying work on its $2B inpatient tower project due to recent changes in federal funding. Current projections show a $9.5B reduction in health care funding to Iowa providers.
- Unions representing workers at three Connecticut hospitals are urging state officials to block a potential takeover of the hospitals by a for-profit company with private equity ties. Labor leaders are also planning to push lawmakers for legislation that will require more scrutiny of health care transactions.
- Health First announced plans to double the size of its Viera Hospital in Viera West, FL. Viera is planning to expand bed capacity from 98 to 214 beds under the new master plan, which is expected to include new operating rooms, an expanded emergency center and a cardiac catheterization lab.
For more information, please contact:
- Andrew Dick at adick@hallrender.com or (317) 977-1491;
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Special thanks to Summer Associate Gabe Vaughn for his assistance with the preparation of this article.
Hall Render blog posts and articles are intended for informational purposes only. For ethical reasons, Hall Render attorneys cannot give legal advice outside of an attorney-client relationship.
