Healthcare Real Estate is Heating Up — Here’s What That Means for Valuations in 2025

We’re just a few months into 2025, and it’s already clear—healthcare real estate is gaining serious momentum. After a couple of slow years thanks to high interest rates and economic uncertainty, things are loosening up. Rates are easing, lenders are becoming more flexible, and we’re seeing more deals, more development, and more movement in the market.

At the same time, the demographic shift we’ve all been expecting is now very real. The population is aging fast, and that’s bringing a wave of demand for senior living, outpatient care, behavioral health, and specialty medical spaces.

So what does this mean from a valuation standpoint?

For starters, sales activity is up—and that’s giving us more data. When deals are happening, we have fresher comps, better rent rolls to analyze, and stronger insight into cap rate trends. That’s critical for anyone trying to get a handle on what a property is actually worth in today’s market.

We’re also seeing more health systems and operators explore sale-leaseback options as they shift focus away from owning and toward expanding. And with more institutional capital entering the space, there’s renewed interest in long-term, stabilized assets—especially medical office and behavioral health facilities.

If you’re an investor, operator, or lender in the healthcare space, now’s the time to get your arms around what your property—or portfolio—is really worth. With market conditions shifting and demand climbing, accurate, timely valuations are more important than ever.

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