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.

A recent real estate report found that, following healthy gains, Houston's medical office market might see less action in the near future. Photo via Getty Images

Report: Houston's hot medical office market might be on track to cool

by the numbers

Houston’s medical office market is on a roll.

A report from commercial real estate services company JLL shows net absorption and transaction volume saw healthy gains in 2022:

  • The annual absorption total of 289,215 square feet was 50.5 percent higher than the five-year average.
  • Transaction volume notched a 31.7 percent year-over-year increase.

Meanwhile, net rents held steady at $26.92 per square foot, up 1.3 percent from the previous year. The fourth-quarter 2022 vacancy rate stood at 15.9 percent.

Despite those numbers, the report suggests a slowdown in medical office rentals may be underway.

“Tenants who may have previously considered building out or expanding their lease agreements are now in a holding pattern due to increased construction costs and higher interest rates,” the report says. “These factors are having a direct impact on financial decisions when it comes to lease renewals, making it more likely that tenants will remain in their existing location for the foreseeable future.”

Still, the report notes “a number of bright spots for the future of healthcare in Houston.” Aside from last year’s record-high jump in sales volume, the report indicates an aging population coupled with a growing preference for community-based treatment “will lift demand even higher in coming years.”

The report shows that in last year’s fourth quarter, 527,083 square of medical office space was under construction in the Houston area, including:

  • 152,871 square feet in the Clear Lake area.
  • 104,665 square feet in the South submarket.
  • 103,647 square feet in Sugar Land.
Last fall, JLL recognized Houston as a top city for life sciences. According to that report, the Bayou City lands at No. 13 in JLL’s 2022 ranking of the country’s top 15 metro areas for life sciences. JLL says Houston “is poised for further growth” in life sciences.
A new report shows Houston has attracted federal support as the life science industry expands locally. Photo via Getty Images

Report: Federal funding, increased life science space drive industry growth in Houston

by the numbers

Federal funding, not venture capital, continues to be the main driver of growth in Houston’s life sciences sector, a new report suggests.

The new Houston Life Science Insight report from commercial real estate services company JLL shows Houston accounted for more than half (52.7 percent) of total funding from the National Institutes of Health (NIH) across major Texas markets through the third quarter of this year. NIH funding in the Houston area totaled $769.6 million for the first nine months of 2022, exceeding the five-year average by 19.3 percent.

VC funding for Houston’s life sciences sector pales in comparison.

For the first nine months of this year, companies in life sciences raised $147.3 million in VC, according to the report. Based on that figure, Houston is on pace in 2022 to meet or surpass recent life sciences VC totals for most other years except 2021. JLL describes 2021 as an “outlier” when it comes to annual VC hauls for the region’s life sciences companies.

JLL notes that “limited venture capital interest in private industry has remained a challenge for the city’s life sciences sector. Furthermore, it may persist as venture capital strategies are reevaluated and investment strategies shift toward near-term profits.”

While life sciences VC funding has a lot of ground to cover to catch up with NIH funding, there are other bright spots for the sector.

One of those bright spots is the region’s rising amount of life sciences space.

The Houston area boasts more than 2.4 million square feet of space for life sciences operations, with another 1.1 million under construction and an additional 1.5 million square feet on the drawing board, the report says. This includes a soon-to-open lab spanning 25,000 square feet in the first phase of Levit Green.

A second bright spot is the migration of life sciences companies to the region. Two Southern California-based life sciences companies, Cellipoint Bioservices and Obagi Cosmeceuticals, plan to move their headquarters and relocate more than half of their employees to The Woodlands by the first half of 2023, according to the report.

“Houston’s low tax rate and cost of living were primary drivers for the decisions, supported by a strong labor pool that creates advantages for companies’ expansion and relocation considerations,” JLL says.

A new report says Houston “is poised for further growth” in life sciences. Photo via Getty Images

Houston named a market to watch within the life science sector

h-town on the rise

Houston is receiving more kudos for its robust life sciences sector.

Bayou City lands at No. 13 in JLL’s 2022 ranking of the country’s top 15 metro areas for life sciences. JLL says Houston “is poised for further growth” in life sciences.

Here’s how Houston fares in each of the ranking’s three categories:

  • No. 12 for supply of life sciences-oriented commercial real estate
  • No. 14 for access to life sciences talent
  • No. 15 for life sciences grant funding and venture capital

Earlier this year, Houston scored a 13th-place ranking on a list released by JLL competitor CBRE of the country’s top 25 life sciences markets. Meanwhile, commercial real estate platform CommercialCafe recently placed Houston at No. 10 among the top U.S. metros for life sciences.

JLL applauds Houston for strong growth in the amount of life sciences talent along with “an impressive base of research institutions and medical centers.” But it faults Houston for limited VC interest in life sciences startups and a small inventory of lab space.

“Houston is getting a boost [in life sciences] from the growing Texas Medical Center and an influx of venture capital earmarked for life sciences research,” the Greater Houston Partnership recently noted.

Boston appears at No. 1 in this year’s JLL ranking, followed by the San Francisco Bay Area, San Diego, Washington, D.C./Baltimore, and Philadelphia.

Last year’s JLL list included only 10 life sciences markets; Houston wasn’t among them.

“The long-term potential of the sector remains materially unchanged since 2021,” Travis McCready, head of life sciences for JLL’s Americas markets, says in a news release.

“Innovation is happening at a more rapid pace than ever before, the fruits of research into cell and gene therapy are just now being harvested, and revenue growth has taken off in the past five years as the sector becomes larger, an atypical growth track.”

The Bayou City also ranks as the No. 1 life science market in the state. Photo by Dwight C. Andrews/Greater Houston Convention and Visitors Bureau

Report: Houston ranks in the top 10 life sciences markets in the U.S.

rising star

Houston has received a big thumbs-up in a new study ranking the country’s top metro areas for life sciences companies to launch or grow.

The study, published by commercial real estate platform CommercialCafe, puts Houston at No. 10 among the top U.S. metros in the life sciences sector and No. 1 in Texas. Boston topped CommercialCafe’s ranking, with Dallas-Fort Worth at No. 16, San Antonio at No. 29, and Austin at No. 37.

For the study, CommercialCafe examined various factors that support the success of a life sciences ecosystem. The study encompassed 45 major metros in the U.S. Among the highlights for Houston:

  • No. 9 ranking for educational attainment, with 733,577 of residents ages 25 year and older holding at least a bachelor’s degree in science, engineering, or an engineering-related field.
  • No. 12 ranking for life sciences projects under development (a little over 817,000 square feet). Overall, the life sciences sector occupies roughly 2.3 million square feet in the Houston area.

Last month, commercial real estate services company CBRE put Houston at No. 13 among the country’s top 25 clusters for life sciences research talent. DFW appeared at No. 16 and Austin at No. 18.

In assessing Houston’s strength in life sciences, CommercialCafe says that “the resilient Texas powerhouse was lifted by the wave of emerging life sciences clusters across the U.S.”

Two major projects are helping Houston maintain that powerhouse status. The Texas Medical Center (TMC) last year unveiled TMC3, a 37-acre, roughly 6 million-square-foot life sciences campus, and Houston-based Hines recently topped out the 270,000-square-foot first phase of the 53-acre Levit Green life sciences district next to TMC.

“Houston is already fortunate to have such a strong healthcare and higher education ecosystem. The TMC3 project stands to be the cornerstone of our regional life sciences strategy. It will create new jobs, [and] advance innovative medical technologies and healthcare solutions,” Houston Mayor Sylvester Turner said in 2021.

According to Greater Houston Partnership data, the Houston area is home to Houston has more than 1,760 life sciences companies, hospitals, health care facilities, and research institutions. Collectively, the life sciences and healthcare sectors employ 320,500 people in the region.

Houston — home to the largest medical center — ranks No. 13 on a list of top life science labor markets. Photo via TMC

Here's how Houston ranks as a life science market, according to a new report

by the numbers

For Houston’s life sciences sector, 13 is a very lucky number.

The Houston metro area ranks 13th in CBRE’s first-ever analysis of the country’s top 25 U.S. labor markets for life sciences. Houston’s collective brain power helped cement its place on the list.

The Boston-Cambridge area tops the ranking. Houston is the highest-ranked Texas market, ahead of No. 16 Dallas-Fort Worth and No. 18 Austin.

Dallas-based CBRE, a provider of commercial real estate services, lauds Houston for its “attractive combination” of affordability and a deep pool of Ph.D.-level talent, as well as the presence of major research universities and medical institutions.

Scott Carter, senior vice president of life sciences and healthcare in CBRE’s Houston office, says those factors make Houston “an attractive market for life sciences industry expansion.”

“Houston is projected to lead the nation in population growth over the next five years, which will only strengthen the appeal of its labor market,” Carter says.

Houston boasts the nation’s highest wages in the life sciences sector compared with the cost of living, the analysis shows. Meanwhile, Ph.D. recipients account for 18.5 percent of the 1,300 biological and biomedical sciences degrees granted each year in the Houston area — the highest concentration nationwide. And Houston produces 4.2 percent of such Ph.D. recipients in the U.S. — more than all but a few major life sciences markets do.

“Millions of square feet and billions of dollars of life sciences development is underway or planned in Houston to break down longtime silos between commercial, academic, and medical sectors,” Carter says. “Leveraging the unmatched scale of the Texas Medical Center, these new moon-shot investments are building a launchpad to rocket Space City into a new era as a global hub for scientific and human progress.”

Underscoring the rapid rise of the city’s innovation ecosystem, Houston enjoys one of the country’s fastest-growing pipelines for VC funding in life sciences. Here, VC funding in the sector rose 937 percent in the past five years, compared with the nationwide increase of 345 percent, according to CBRE.

For its analysis, CBRE assessed each market based on several criteria, including its number of life sciences jobs and graduates, its share of the overall job and graduate pool in life sciences, its number of Ph.D. recipients in life sciences, and its concentration of jobs in the broader professional, scientific, and technical services professions.

In 2020, CBRE ranked Houston as the No. 2 emerging hub for life sciences in a report, which factored in size and growth of life-sciences employment, the venture capital and National Institutes of Health funding, and more.

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Gowing femtech company chooses Houston for first out-of-state expansion

A startup dedicated to comprehensive pregnancy, birth and postpartum care has expanded from its Chicago birthplace to Houston.

Last summer, Partum Health raised $3.1 million in seed funding, which makes it possible for the company to begin a nationwide expansion. That begins in Space City.

“We looked at states where there is work to do on outcomes for maternal health. Texas rose to the top and Houston, in many ways is fairly close to Chicago, our home city. The really thriving healthcare ecosystem attracted us as well,” CEO and Co-Founder Meghan Doyle tells InnovationMap.

As a mom of a seven-year-old and a nine-year-old herself, Doyle says that she experienced the gap firsthand in what’s available to women beyond what her obstetrician or midwife does.

“You had to work really hard to cobble together the care you needed. It was a matter of putting together my personal experiences of realizing it’s not just me, it’s systematic,” says Doyle. “I couldn’t get that problem out of my head.”

Neither could her co-founder and head of operations, Matt Rogers, a father of twins whose family had to navigate the NICU and life-threatening complications. They started working together on the business in earnest during the COVID shutdown and debuted Partum Health at the beginning of 2021.

Partum has begun partnering with obstetricians and midwives to help select complementary care that includes lactation support, pelvic floor physical therapy, mental health services, nutrition counseling and doula care. What’s unique about the plan is that, from aiding in behavioral health problems to addressing nutritional issues, the user’s team is distributed around the Houston area and are fully virtual. Physical therapy and other services that must be done in-person may take place either in-home or at third-party locations.

“We’re still in the process of credentialing with insurance companies,” says Doyle.

In Illinois, Partum is already working with BlueCross BlueShield, United Healthcare, Aetna and Cigna for clinical care, so Doyle says she is confident that those companies will soon follow suit in Texas.

While hiring a team in Houston that includes a client care lead, Doyle says that Partum is simultaneously providing services and getting to know the market better. They’re also building more bundled models of care to better assist users in their new landscape.

Doyle and Partum Healthcare participated in the Ignite Healthcare Network’s 2023 program, which concluded last week with a pitch competition. Ignite helps female healthcare founders to connect with mentors and other industry experts that will help them navigate the health tech ecosystem. Doyle was one of nine finalists, but did not place in the top three. But she says the program has helped prepare her for success nonetheless.

“In our world, you’re always pitching,” she admits.

The next steps for Partum include a 2024 rife with expansion. Because building relationships with insurance happens on a state-by-state basis, the company will be able to help women around Texas soon after the company is comfortably established in Houston. The Dallas-Fort Worth area will likely be first, followed by Austin and San Antonio.

“We know there’s a huge gap in access to care that may mean evolving a little bit and reaching out across the state,” Doyle says.

Last month, the Texas Health and Human Services Commission reported that 90 percent of the state’s pregnancy-related deaths are preventable. With access to care like what Partum provides, those complications could become a thing of the past.

University of Houston lines up entrepreneurship course featuring Taylor Swift's billion-dollar career

Cougar Red (Taylor's Version)

By any measure, Taylor Swift put on a masterclass with her Eras Tour this year — her Houston stop was a study in three-hours of pop-culture-perfect brand execution and fan frenzy.

Now, University of Houston is taking Tay studies to the next level with a new biz class.

Appropriately dubbed “The Entrepreneurial Genius of Taylor Swift,” the new class is part of the curriculum at coming to the C. T. Bauer College of Business at the University of Houston next spring. Swfities who’re super “ready for it,” however, can get a jump on enrollment now.

Study “the 1” at a No. 1 institution

Though Swifties and Tay (and Travis) fiends will surely soak up every class hour, the program isn’t just for fans, the prof notes in a press statement. And Bauer College offers serious cred for current and new students, as its Wolff Center for Entrepreneurship has long ranked No. 1 in the U.S.

“You definitely don’t have to be a hardcore fan — a Swiftie — to learn and appreciate the entrepreneurial genius that has made Taylor Swift an international phenomenon,” notes Kelly McCormick, the Professor of Practice leading the course, citing Swift’s expertise in marketing, fan engagement, community building, and brand strategies.

Don’t hate, hate, hate, hate, hate on this Tay tutorial

Sure, Swift haters night hate on a Taylor course. But before they do, they should consider that at age 33, Swift boasts an estimated net worth of $1 billion, according to Forbes. And her aforementioned Eras Tour? Swift earned more than $780 million on the U.S. leg alone this year on the tour, which — by current estimates — cues her up to become the highest-grossing female touring artist of all time.

Her Eras Tour concert film also just became the highest-grossing concert film in North America, raking between $95 million to $97 million in ticket sales during its opening weekend — alone.

Taylor Swift Houston 2023 Eras Tour
Swift can flex a $1 billion net worth, per Forbes. Photo by Marco Torres/Marco from Houston


And then of course, her music acumen and savvy. In 2021, Swift smartly re-recorded a version of her album Fearless and launched a series of releases of her back catalog, in order to secure ownership of her first six albums.That move came after the masters (the original recordings) sold for a reported $300 million in 2019.

Here in Houston, as CultureMap reported, the Post-Tay Effect (we’re making that a thing) had a lasting economic effect, notbaly for areas pet and food nonprofits.

Hardcore business aside, the class Still, the course will be Taylor-made for Swifties. McCormick, who also serves as managing director for the university’s startup accelerator RED Labs, has themed each session around a different album — or Era, obvi for fans — of Swift’s career.

What to expect on the “mornin' of your very first day”

So, when students take a deep breath and walk through the door of their very first day (obligatory “Fifteen,” callout) they will score friendship bracelet gifts — a huge Swiftie phenomenon — and will be treated to surprise songs during breaks and even Easter eggs hidden in class content. (That’s a clever nod to Swift, who regularly hides clues, callbacks, and “oh yeaaahhhh” moments for fans in her music videos, album artwork, and social media posts).

As for the Tay inspo, McCormick says she has been a Swift fan since the early days of mega-hits “Our Song” and “Love Story.” But like so many who were blown away by the sheer Tay Machine during the Houston Eras Tour stop in April, the professor quickly noted entrepreneurship lessons to be learned over Swift’s in her 17-year career.

Taylor Swift Houston
The professor says Swift's dazzling Eras Tour stop in Houston inspired the class. Photo: Bob Levey/Getty Images/Taylor Swift Twitter


“I saw the show and loved it,” McCormick adds. “And I realized I actually didn’t know that much about her career. I became absolutely enamored basically overnight and started getting into her whole discography. Taylor is truly impressive!”

She added: “Never have I ever — like ever — been so engrossed in someone’s career after so little time.” (Should anyone doubt all the Tay references, McCormick’s “never have I ever — like ever” comments is shoutout to Swift’s most popular singles, “We Are Never Ever Getting Back Together.” Very clever.)

Travis-Tay included?

But perhaps the top Tay lesson is how to ensure satisfied customers.

“The number one business lesson students can learn from Taylor is the way she treats her fans,” McCormick notes. “She is beloved because she truly does so much to make sure they are happy, appreciated and feel like they are important to her. If every company acted that way about their customers — they’d have way more customers.”

Oh, and, no word — and we didn’t ask, for the record — if Kansas City Chiefs tight end/Swift squeeze Travis Kelce is part of the curriculum. Also no word if, to quote “Fifteen,” students will “sit in class next to a redhead named Abigail.”

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This article originally ran on CultureMap.