Report: Houston to see highest concentration of medical office project completions this year

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One of Houston's biggest medical office projects — the $1.3 billion, 400,000-square-foot O’Quinn Medical Tower — is expected to deliver this year. Photo courtesy of Baylor College of Medicine

Medical office and life sciences projects are making a big splash in Houston’s commercial real estate sector in 2023.

The 42Floors commercial real estate website ranks five Houston-area medical office buildings among the country’s 20 largest medical office projects set to open this year. Meanwhile, 42Floors identifies two Houston developments among the 20 biggest U.S. life sciences projects on tap to debut in 2023.

Leading the list of the largest U.S. medical office buildings scheduled to be completed this year is the $1.3 billion, 400,000-square-foot O’Quinn Medical Tower. Set to open April 14 at the McNair Campus of Baylor St. Luke’s Medical Center, the outpatient facility will adjoin the McNair Hospital Tower, which opened in 2019.

The O’Quinn tower will serve as the new clinical home of the Dan L Duncan Comprehensive Cancer Center. The center is a federally designated facility for cancer care and research.

Highlights of the 12-story O’Quinn tower, southeast of the Texas Medical Center, include:

  • Ambulatory surgery center with 12 operating rooms and 10 endoscopy suites
  • 80-bay setup for infusion therapy
  • More than 70 exam rooms
  • More than 850 parking spaces

In all, five medical office properties in the Houston area made the 42Floors list, representing the highest concentration of major projects in any U.S. metro area that are scheduled to open this year. The four medical office properties joining the O’Quinn tower on the list are:

  • Houston Methodist Sugar Land Medical Office Building 4, 159,252 square feet
  • Kelsey-Seybold Springwoods Village Campus, 157,983 square feet
  • Kelsey-Seybold Ambulatory Surgery Center in Clear Lake, 116,000 square feet
  • 1715 Project in Friendswood, 107,000 square feet

A separate 42Floors list ranks Dynamic One, part of Baylor College of Medicine’s TMC Helix Park, as the second largest life sciences project in the U.S. set to come online this year. Houston’s TMC3 Collaborative Building lands at No. 19.

The 12-story Dynamic One project will feature lab space, offices, restaurants, and stores. It represents the first of four buildings planned for the 37-acre, five-million-square-foot TMC Helix Park, which is projected to generate an economic impact of $5.4 billion.

The 42Floors list puts the square footage of Dynamic One’s north tower at 365,000. Organizations involved in the project cite the square footage as 355,000.

The Baylor College of Medicine has signed up as Dynamic One’s anchor tenant. It will occupy 114,000 square feet of lab and office space.

“Baylor College of Medicine is a major force in life sciences discovery and commercialization at TMC. Their move to TMC Helix Park will serve as a catalyst for enhanced collaboration with TMC’s other esteemed Institutions, as well as with industry leaders from around the world,” Bill McKeon, president and CEO of TMC, says in a news release.

Also located at TMC Helix Park, the four-story TMC3 Collaborative Building will span 250,000 square feet. It will contain research facilities for MD Anderson Cancer Center, the Texas A&M University Health Science Center, the University of Texas Health Science Center at Houston, and TMC.

In addition, the TMC3 Collaborative Building will house life sciences companies, the TMC Data Collaborative, the TMC Venture Fund, the Braidwell hedge fund, and venture capital and private equity firms.

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Op-Ed: Removing barriers is critical for the future of Houston's health care workforce

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Houston houses one of the most renowned medical communities in the world. However, Texas' current health care workforce shortage has severely impacted the city, with large swaths of the Gulf Coast Region deemed medically underserved. Thousands of Houstonians are impacted year after year due to the lack of access to life-saving medical care.

The obvious solution to this problem is to form a pipeline of health care workers by equipping students with the necessary skills and education to fill this gap. Sadly, many individuals who lack opportunity yet aspire to pursue a career in the health care industry face barriers related to childcare, transportation, mentorship gaps and life's unexpected circumstances.

Dwyer Workforce Development (DWD), a national health care training nonprofit, has recently expanded its footprint to Texas and has joined Houston Community College (HCC), one of the largest community colleges in the country, to provide life-changing support and create a pipeline of new health care workers, many who come from underserved areas.

Last year, our organizations launched the Dwyer Scholar Apprenticeship program, which is actively enrolling to combat the health care shortage and bring opportunities to those lacking. Working together, we are supporting apprentices each year to earn their Certified Nurse Aide (CNA) certificates, where students can choose a Phlebotomy or EKG specialization, helping our city meet the demand for one of the most essential and in-demand jobs in health care each year. Our program will help address Texas' loss of 36 percent of its CNAs over the past decade while providing gateways for highly motivated students—Dwyer Scholars—to thrive in long-term health care careers.

We know financial barriers prevent many potential health care workers from obtaining the certifications needed to enter the workforce. That's why we are bringing our innovative programs together, enabling Scholars to earn while they learn and opening doors for those who do not have the financial luxury of completing their training in a traditional educational atmosphere.

After enrollment, DWD continues to provide case management and additional financial support for pressures like housing, childcare, and transportation so Scholars don't have to put their work before their education. Scholars are placed with employers during the program, where they complete their apprenticeships and begin full-time employment following graduation.

The Texas Workforce Commission has identified apprenticeship programs as a key area for expansion to meet employer demand for skilled workers. Through our partnership, we are doing just that – and the model is proven. More than 85 percent of DWD Scholars in Maryland, where the program was established, have earned their certificates and are now employed or on track to begin their careers.

Our work doesn't end here. Over the next decade, Texas will face a shortage of 57,000 skilled nurses. Texas must continue to expand awareness and access to key workforce training programs to improve outcomes for diverse needs. Our organizations are working to vastly expand our reach, making the unattainable attainable and helping to improve the lives and health of our community.

No one's past or present should dictate their future. Everyone deserves access to health care, the ability to further their education and the chance to set and achieve life goals. The opportunities to reach and empower underserved populations to participate in the health care workforce are limitless.

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Barb Clapp is CEO of Dwyer Workforce Development, a nonprofit that supports individuals who aspire to pursue a career in the health care industry. Christina Robinson is the executive director for work-based learning and industry partnerships at Houston Community College.

Houston Spaceport takes off with second phase of development

ready for liftoff

Since the Houston Spaceport secured the 10th FAA-Licensed commercial spaceport designation in 2015, the development's tenants have gone on to secure billions in NASA contracts. Now, the Houston Spaceport is on to its next phase of growth.

“Reflecting on its meteoric rise, the Spaceport has seen remarkable growth in a short span of time. From concepts on paper to the opening of Axiom Space, Collins Aerospace, and Intuitive Machines, the journey has been nothing short of extraordinary,” says Arturo Machuca, director of Ellington Airport and the Houston Spaceport, in a news release. “These anchor tenants, collectively holding about $5 billion in contracts with NASA and other notable aerospace companies, are not just shaping the future of space exploration but injecting vitality into Houston’s economy.”

The next phase of development, according to Houston Airports, will include:

  • The construction of a taxiway to connect Ellington Airport and the Spaceport
  • The construction of a roadway linking Phase 1 infrastructure to Highway 3
  • The expansion of the EDGE Center, in partnership with San Jacinto College

Rendering via Houston Airports

The Houston Spaceport's first phase completed in 2019. Over the past few years, tenants delivered on their own buildouts. Last year, Intuitive Machines moved into its new $40 million headquarters and Axiom Space opened its test facility. In 2022, Collins Aerospace cut the ribbon on its new 120,000 square-foot facility.

“The vision for the Houston Spaceport has always been ambitious,” says Jim Szczesniak, director of Aviation for Houston Airports. “Our vision is to create a hub for aviation and aerospace enterprises that will shape the future of commercial spaceflight.”

Educational partners have also revealed new spaces, including San Jacinto College's EDGE Center, which broke ground in July of 2019, finally celebrated its grand opening in 2021. Last year, Texas Southern University got the greenlight to operate an aeronautical training hub on a two-acre site at Ellington Airport.

“By providing the education and training needed to sustain jobs in the rapidly evolving space industry, the Spaceport is not only attracting companies but also nurturing the talent that will drive Houston's aerospace sector forward,” continues Szczesniak in the release.

New report calls for Houston health care community to take action amid climate change

time for action

A new report underscores an “urgent need” for health care systems in the Houston area to combat climate change and avoid an environmental “code blue.”

“By adopting collaborative strategies and leveraging technological innovations, health care providers can play a pivotal role in safeguarding the health of Houston’s residents against the backdrop of an evolving climate landscape,” says the report, published by the Center for Houston’s Future.

Among the report’s recommendations are:

  • Advocate for policies that promote decarbonization.
  • Create eco-friendly spaces at hospitals and in low-income communities, among other places.
  • Recruit “champions” among health leaders and physicians to help battle climate change.
  • Establish academic programs to educate health care professionals and students about climate health and decarbonization.
  • Bolster research surrounding climate change.
  • Benchmark, track, and publish statistics about greenhouse gas emissions “to foster accountability and reduce environmental impacts of the health care sector.” The report notes that the U.S. health care sector emits 8.5 percent of the country’s greenhouse gases.

“By embracing collaborative strategies, acting with urgency and implementing sustainable practices, our region’s health care providers can play a pivotal role in creating a healthier, more resilient Houston,” says Brett Perlman, outgoing president and CEO of the Center for Houston’s Future. “If we work together, given all the collective wisdom, resources and innovation concentrated in our medical community, we can tackle the challenges that are confronting us.”

The report highlights the threat of climate-driven disasters in the Houston area, such as extreme heat, floods, and hurricanes. These events are likely to aggravate health issues like heatstroke, respiratory illnesses, cardiovascular diseases, and insect-borne diseases, says the report.

St. Luke’s Health, a nonprofit health care system with 16 hospitals in the Houston area and East Texas, provided funding for the report.

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This article originally ran on EnergyCapital.

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