Caddis Kicks Off Dallas MOB Project

Groundbreaking ceremony at Frisco Medical Pavilion II. Image courtesy of Transwestern.

Caddis Healthcare Real Estate has broken ground on Frisco Medical Pavilion II, a 60,000-square-foot medical office building in Frisco, Texas. The development is slated for completion in early 2024.

Novel Builders serves as general contractor, Hart Gaugler + Associates provides civil engineering services and Grace Hebert Curtis Architects is the project’s architect.

The Dallas-based company first announced the development plans for the Class A structure back in March 2022. Transwestern Real Estate Services will handle leasing services for the property.

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Upon completion, Frisco Medical Pavilion II will feature 20,000-square-foot floorplates, a state-of-the-art lobby, elevator cabs with gurney capacity and space for an ambulatory surgical center on the first floor. Amenities will include a 15,000-square-foot outdoor wellness area, covered patient drop-off and on-site parking. The building is already partially preleased.

The property is located at 12850 Dallas Parkway, 30 miles from downtown Dallas and has frontage to the Dallas North Tollway. The building will be situated next to Texas Health Frisco, a full-service hospital which opened in December 2019. Other medical facilities in the surrounding area include Solomon Plastic Surgery and Affinity Dermatology, among others.

Caddis has more than 80 medical office assets totaling 5 million square feet under management, with the combined value of its acquisitions and developments exceeding $1 billion.

DFW health-care market in need of supply

The Dallas-Fort Worth health-care sector encompasses six medical office buildings under construction, with 28 projects in the planned and prospective stages, set to add approximately 5.5 million square feet to the existing inventory, according to CommercialEdge data.

A fourth-quarter 2022 Transwestern report on the DFW medical office market shows that vacancy reached a multi-year low of 10 percent, a slight decrease compared to the same period last year, when the rate stood at 11.4 percent.

According to Transwestern, rent growth and low vacancy rates create optimal conditions for medical office development in the structurally under-supplied DFW market. However, despite a robust demand for medical office space, rising interest rates and tightening credit conditions challenge the financing of new developments.