Healthcare Valuations Are Lagging Reality—And It’s Costing Owners Deals

There’s still demand in healthcare real estate.

There’s still capital out there.

And in many cases, there are buyers on the sidelines, ready to move.

So why are so many deals stalling or falling apart at the appraisal stage?

Because the valuation model isn’t keeping up with the market.

In 2025, we’re seeing a widening gap between what owners think their properties are worth and what valuations (and buyers) are coming in at.

Here’s what’s causing the disconnect:

→ Outdated cap rate assumptions from pre-rate hike environments

→ Ignoring tenant credit deterioration or license risk

→ Using overly optimistic rent comps in shaky submarkets

→ Not adjusting for real-world operating cost increases

For owners, this creates frustration. You know your asset has value—you’ve got occupancy, you’ve got lease term, you’ve got demand. But if the story isn’t supported by clean, up-to-date data and market logic, it won’t hold up in underwriting.

For appraisers and advisors, this is the moment where precision matters. It’s not enough to drop in comps and average the cap rates. It takes a deep understanding of healthcare operations, licensing nuances, and the subtle shifts happening on the provider side.

The good news? Deals are still getting done—when the valuation is dialed in.

📅 Book a call if you want a valuation that reflects today’s market and actually supports your exit or refinance goals.

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Because in this market, guesswork kills deals. Precision gets them across the finish line.