Fueled by the need for modern, state-of-the-art healthcare facilities, billions of dollars are being allocated at record proportions toward the development of healthcare projects throughout New York City and the larger metropolitan region.
Construction Forecast through 2020
According to a forecast construction spending report on healthcare real estate trends released by the New York Building Congress in December 2016, New York City hospitals will spend an estimated $10 billion + on construction through 2020. Of that amount, $8.3 billion is slated to be spent through 2018. Furthermore, NYC hospitals are projected to add an estimated 2 million square feet of hospital space to the existing inventory. Numerous healthcare organizations are expected to continue expanding primary and outpatient care capacity on and off main hospital campuses.
“What our survey and research revealed is that much of the construction activity is being driven by the health care sector that is changing before our eyes,” said Richard Anderson, former president of New York Building Congress. “New York City’s large hospital systems are consolidating, adding new services and expanding well beyond their historic borders throughout the city to transform how they deliver health care. And the types of investments they are making reflect this.”
The respondents, who together represent 80 percent of all spending on hospital construction, include Montefiore Health System, Mount Sinai Health System, New York-Presbyterian Hospital, Northwell Health, NYC Health + Hospitals, NYU Langone Medical Center and several smaller institutions.
Large-scale Upgrades for New York’s Medical Facilities
- Memorial Sloan Kettering’s David H. Koch Center for Cancer. One of the largest Manhattan healthcare construction developments underway is Memorial Sloan Kettering’s David H. Koch Center for Cancer Care. The center will serve as an archetype for 21st-century cancer care. The 23-story outpatient facility will share 1,150,000 gross sq. ft. (750,000 sq. ft. for Memorial Sloan Kettering and 403,000 sq. ft. for CUNY) at East 74th Street between York Avenue and FDR Drive with the City University of New York (CUNY) Hunter College’s Science and Health Professions Building. The projected project’s completion date is scheduled for in 2019.
As reported in dnainfo.com, the complex named in honor of David H. Koch was his largest donation to date of $150 million, the largest single donation in the hospital’s history, which made it possible to build the new center.
- New York Presbyterian’s David H. Koch Center. Mr. Koch also donated $100 million toward the New York Presbyterian’s David H. Koch Center. The facility, located on York Avenue between 68th and 69th Street, is scheduled to open on April 30, 2018. The center will drive the evolution of ambulatory care by providing a one-stop, out-patient multi-specialty treatment center and a state-of-the-art maternity ward.
- New York Proton Center. The $238 million New York Proton Center (NYPC), located at 225 East 126th Street in East Harlem, is the first proton beam therapy facility in New York State. The Center will provide a state-of-the-art cancer treatment regimen using targeted radiation that is especially effective on pediatric, head and neck, and eye cancers, among others. The first patients are expected to be treated by the end of 2018.
A consortium of New York’s preeminent healthcare institutions, including Memorial Sloan Kettering Cancer Center, Mount Sinai Health System, Montefiore Health System, and ProHEALTH Medical Management, LLC will operate the facility. Real estate developer Murphy & McManus is spearheading the construction, drawing from their specialized focus in the healthcare and life sciences sector. The new Center will revitalize an underutilized city property to strengthen New York City’s position as a global capital for cutting edge medical care and promote the continued growth of the vital bioscience and healthcare sectors.
- NYU Langone Medical Center. More than 1 million square feet of space is under construction at NYU Langone Medical Center of First Avenue between 30th and 34th Street. Construction is underway for the 830,000 sq. ft. Helen L. and Martin S. Kimmel Pavilion, alongside the Tisch Hospital, which will be fully refurbished. The Kimmel Pavilion is set to open in 2018. The Hassenfeld Children’s Hospital will also be part of the new Kimmel Pavilion. On the other side of the campus, at 30th street and the FDR Service road is the NYU Langone’s Science Building, a new facility encompassing more than 365,000 sq. ft. and 10 floors of laboratory space.
- NYC Health + Hospitals plans to invest $200 million to $300 million annually from fiscal years 2016 through 2019 at 10 of its facilities in New York. The health system plans to harden facilities damaged by Superstorm Sandy as well as update and modernize key buildings.
New Growth in the Garden State
These expansive medical office real estate trends are occurring in New Jersey as well.
- Summit Medical Group MD Anderson Cancer Center. On November 29th, Summit Medical Group MD Anderson Cancer Center opened its Radiation Oncology Department at 1 Diamond Hill Road, located in the Lawrence Pavilion in Berkeley Heights, New Jersey. Patients will receive seamless care under one roof from diagnosis to treatment and throughout survivorship.
Summit Medical Group MD Anderson Cancer Center's Florham Park facility will open in summer 2018 and will provide the latest advances in cancer care. The partnership is an extension of MD Anderson's relationship with South Jersey's Cooper University Health Care. The center will feature a modern 130,000 square foot outpatient facility ensuring a high-quality experience close to patients’ homes. The University of Texas MD Anderson Cancer Center in Houston ranks as one of the world's most respected centers focused on cancer patient care, research, education and prevention.
- New York City based Memorial Sloan Kettering (MSK) is also expanding its footprint in the tristate region. MSK Bergen will serve residents of Bergen, Essex, Passaic, and Hudson counties in New Jersey, and those living in the lower New York counties of Orange and Rockland. Opening in mid-2018 the 109,000-plus-square-foot outpatient center, located only minutes from the Garden State Parkway at exit 172 and a short distance from the New York State border, will house all the latest technology and modern healthcare design elements that patients expect from one of the nation’s top cancer centers.
In November, MSK opened its new outpatient facility, featuring about 120,000 sq. ft. clinical program space and a 50,000 sq. ft. cancer center in the former Lucent Technologies building on Red Hill Road in Middletown, Monmouth County, New Jersey. The new cancer center is the first MSK regional location with operating rooms.
September 2019 is the scheduled date of the opening of the MSK 114,000 sq. ft. cancer facility at the Hub in Uniondale, Long Island. The $180 million project will have more than twenty cancer doctors covering multiple disciplines. The health system said it will close its current Rockville Center facility at Mercy Hospital once the new location is live.
- The Hospital for Special Surgery (HSS) opened its largest outpatient center, a 50,000 sq. ft. outpatient facility at 1133 Westchester Avenue in White Plains this past October. This summer, HSS opened a 22,425 sq. ft. ambulatory care center at 1233 Second Avenue at 65th Street, a short distance from the hospital’s main campus. The center features four operating rooms and a pre- and post-surgical unit.
The perfect gift for the city that has everything? An upgrade to premier, cutting-edge medical facilities to match its ever-growing population.