How Expiring Pandemic-Era Leases Are Reshaping Healthcare Real Estate

Not all the effects of COVID hit immediately. Some are just now starting to show up—especially in healthcare real estate.

We’re seeing it in a very specific way:

Pandemic-era leases are coming due.

Back in 2020–2021, many healthcare providers signed short-term leases to stay flexible. Landlords offered concessions. Tenants took space they could open quickly—often without the usual long-term planning.

Fast forward to 2025, and those 3–5-year deals are hitting the end of their run.

And now, everyone has to ask:

→ Did this space actually work?

→ Is the rent still viable in this market?

→ Is it worth renewing, relocating, or expanding?

That question is showing up in valuations, too.

Some providers are walking from spaces that never really fit. Others are doubling down and negotiating longer terms. Some landlords are facing re-tenanting costs they didn’t plan for. And a few are discovering the rent they locked in back then no longer reflects today’s market.

It’s creating pockets of movement—and opportunity.

For appraisers and brokers, this is a critical moment to reassess:

• What are the real market rents now?

• What’s the likelihood of renewal?

• How do buildout investments affect negotiations?

• Is there upside—or risk—coming with this tenant?

This isn’t a crash. It’s more like a quiet reshuffling.

But it’s enough to impact cap rates, leasing comps, and long-term projections—especially in medical office, behavioral health, and outpatient care.

📅 Book a call if you’re evaluating a property with a lease coming up or already seeing movement in your market.

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