Physician Group Consolidation Is Reshaping Real Estate Strategy in 2025

Private equity is still busy. Health systems are still acquiring. And independent physician groups? They’re feeling the pressure.

In 2025, consolidation among physician groups is reshaping how real estate is used, leased, and valued across the healthcare space.

Instead of leasing 2,000–3,000 sq. ft. in a suburban strip center, these larger groups are looking for:

→ Centralized, multi-specialty hubs

→ Shared back-office space for billing and admin

→ Clinical layouts that support higher patient volume and efficiency

→ Infrastructure that can scale with regional expansion

As these groups grow, they want real estate that reflects their new size and sophistication—not just whatever suite they’ve been renting since 2012.

For landlords and owners, this has a few key implications:

• Older, chopped-up suites may sit longer unless repositioned

• Larger tenants want longer leases—but more say in buildouts

• Consolidated groups bring more credit… and more negotiation power

Valuation-wise, this means medical office assets with flexible layouts, updated infrastructure, and strong anchors are becoming more attractive—especially if they align with emerging regional healthcare networks.

On the flip side, properties designed for now-defunct solo practices may face more downward pressure unless re-tenanted or repurposed.

📅 Book a call if you’re navigating physician group negotiations, or just want to understand how consolidation is affecting value.

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Consolidation is changing everything—including the four walls those practices work in.