REOC San Antonio
Commercial Real Estate Since 1974   
Kim_Gatley
Kim Gatley
S
enior Vice President & Director of Research at REOC San Antonio

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San Antonio Medical Market Topic of Healthcare Realty Luncheon

The local medical office market continues to exhibit resistance to the current economic downturn.  That was the main message presented by Kim Gatley, Senior Vice President and Director of Research for REOC Partners at the May 27th broker luncheon hosted by Healthcare Realty.  In a 20-minute powerpoint presentation, Gatley offered an update on the local office and medical office markets.More than thirty brokers gathered at Silo Elevated Cuisine 1604 on May 27th to take a virtual tour of the of Healthcare Realty’s new 18707 Hardy Oak Medical Pavilion located across from the newly completed Stone Oak Methodist Hospital.  The five-story, 120,000 square-foot, Class A medical office building is scheduled to reach completion in February 2010.

Other speculative development includes the Villa Rosa Medical Plaza (66,226 sf) developed by BP Healthcare on the Christus Santa Rosa campus in the South Texas Medical Center which is scheduled to open this summer.  Oaks Development has started construction on a three-story building in Westover Hills which is said to be 70% pre-leased.

The success of the growing Healthcare industry continues to drive demand leading to expansion and development of new clinical facilities throughout the San Antonio area and surrounding communities.  In New Braunfels, for example, Christus Santa Rosa spent approximately $3 million over the past year on technology and other upgrades at the former McKenna Memorial Hospital, renamed Christus Santa Rosa-New Braunfels.  An additional $12 million is slated to be spent to provide interventional cardiology capabilities.  In Hondo, roughly $12.3 million was spent to upgrade the former Medina Community Hospital, now called Medina Regional Hospital.  Along Highway 151 in the emerging Far West sector of San Antonio, the Christus Santa Rosa Hospital is nearing completion and scheduled to come online in July. 

The University Health System is planning to spend $899 million to upgrade and expand two campuses.  University Hospital will see $629 million of upgrades including a new tower to accommodate 488 new patent beds along with new Operating Room suites.  At the University Health Center-Downtown, $92 million will be spent to expand the pharmacy and parking.

In addition to the hospital systems, the Department of Defense is also contributing to the growth of the local healthcare industry with over $2 billion worth of construction and renovations at area military installations over the  next three years.  The majority of growth is taking place at Fort Sam Houston with the development of the Medical Education Training Campus (METC) – a 1.9 million square-foot facility that will accommodate all enlisted medical training programs for all branches of the US military.  When fully operational in 2012, the facility will be able to host 45,000 medical students a year.  Construction began last quarter on the $724 million expansion of Brooke Army Medical Center to help establish the San Antonio Military Medical Command (SAMMC).

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