Lease to Own Models Are Gaining New Attention in Medical Real Estate

Operators and landlords in the healthcare space are looking at alternative deal structures to navigate high interest rates, tight credit, and rising construction costs. One model that’s getting renewed attention is lease to own.

While not new, lease to own arrangements are being considered more frequently in 2025 as a strategic alternative to conventional leasing or immediate acquisition. These deals often provide an operator with immediate occupancy through a lease, while securing the option—or obligation—to purchase the property after a defined period or upon meeting certain performance benchmarks.

This structure is becoming attractive in medical real estate for several reasons:

• Financing remains challenging. Lenders are being more selective, and some operators prefer to stabilize operations in a space before taking on full ownership risk.

• Cap rates have shifted. As valuations adjust and price discovery continues, lease to own offers a way for both parties to align expectations without forcing a premature sale.

• Ownership demand is up. According to JLL, medical condo sales and owner-user transactions have increased year over year, pointing to more healthcare groups prioritizing real estate control.

• Private landlords are open to flexibility. In suburban and secondary markets especially, private owners are often willing to offer purchase options in exchange for reliable tenancy and long-term alignment.

This isn’t a market-wide trend, but it is one that fits the moment—particularly for behavioral health, outpatient specialty care, and dental practices looking to scale responsibly.

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