Not All Medical Tenants Are Created Equal

There’s a big difference between a tenant and a good tenant. In medical real estate, that difference can make or break a deal.

A private-pay dental group with strong margins and long-term community roots? Solid anchor. A low-volume specialty clinic with poor insurance mix and no affiliation? That might look fine on paper—but good luck re-tenanting when they move out.

We’ve seen plenty of assets marketed as “fully leased” with tenants that are barely staying above water. The rent checks are clearing—for now—but underwriting them the same way you’d underwrite a regional hospital or a credit-backed practice is a mistake.

That’s where market intelligence kicks in. It’s not about what the rent roll says—it’s about who’s behind the lease, how they’re performing, and what happens if they leave.

Before you buy into a rent stream, make sure you understand the operator behind it. Good operators make great assets. Bad ones? They just burn time and capital.

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