Cap Rate Compression in Outpatient Assets: What It Means for Sellers

There’s been a quiet but significant trend picking up steam in 2025: cap rate compression in outpatient healthcare assets.

We’re seeing it across stabilized urgent care, ambulatory surgery centers, and high-demand multi-specialty clinics—particularly in growth markets and suburban areas with population tailwinds.

What’s driving it?

→ High investor demand for low-risk, income-producing medical assets

→ Limited new inventory due to construction cost constraints

→ Increased competition among private equity-backed healthcare buyers

The result? Assets that were trading at 7.0–7.25% cap rates in 2022 are now closing closer to 6.5–6.75%—sometimes tighter if there’s a strong tenant with long-term licensing and solid performance metrics.

For sellers, this creates a real opportunity—but only if the story holds up.

This kind of compression favors owners who’ve invested in tenant relationships, kept occupancy stable, and maintained compliance with clinical and building standards. If your valuation narrative is clear and backed with supporting financials, you’re likely to command real attention from active buyers.

From the appraisal and advisory side, it also means adjustments need to be surgical. One outpatient isn’t equal to another—not when location, payer mix, and operator strength are so variable.

📅 Want to know what your outpatient facility is worth in today’s cap environment? Book a call and let’s run the numbers.

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