Healthcare Market Booms in Texas Oil Town
Recognized as the energy capital of the world, it’s no surprise that Houston’s real estate focus is typically centered around the current oil and gas economy. However, the healthcare industry here has grown dramatically over the past 30 years, and now accounts for a significant portion of the overall Houston real estate market. The Texas Medical Center (TMC) – the world’s largest concentration of healthcare and research institutions – continues to expand, along with hospitals and medical office buildings being constructed in suburban areas outside of the city’s inner loop and far into the growing markets of Sugar Land, The Woodlands, Katy and Cypress as residents increasingly prefer to seek healthcare closer to home.
Houston-based Medistar Corporation is in the process of building Innovation Tower, a 48-story mixed-use development that will be comprised of 1.6M total SF. The first phase of construction will be for medical and life sciences, plus a penthouse-level restaurant and lounge, while the second phase will add luxury high-rise residential units and additional office space. The soon-to-be iconic addition to the Texas Medical Center skyline will be located near Rice University and the Museum District, as well as the Houston Zoo and Hermann Park Golf Course. Construction will begin during the third quarter of 2019.
Innovation Tower rounds out a slew of other TMC-adjacent developments that include a hotel and an apartment tower. TMC3, a 37-acre campus that will serve as a biomedical research hub, is undergoing updates to its design and is slated to open in 2022.
Houston’s healthcare industry is on the rise, and 2019’s CRE market is responding to the increased demand, especially in the biomedical technology arena.