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