The Impact of Telemedicine on Medical Real Estate

Telemedicine has transformed healthcare, making it easier for patients to connect with providers from the comfort of their homes. While this shift has improved access to care, it has also sparked a major question in medical real estate: Does the rise of telehealth reduce the need for physical office space? The answer is more nuanced than a simple yes or no.

While routine consultations, follow-ups, and mental health visits can now be handled virtually, many medical services still require in-person care. Primary care physicians, specialists, imaging centers, and surgical facilities still need physical locations, and in many cases, telemedicine is actually driving the need for more flexible, technology-integrated spaces.

One of the biggest changes in medical real estate is the shift toward smaller, more efficient office spaces. Since some providers now see a portion of their patients remotely, they don’t need as much square footage for waiting areas and exam rooms. This trend is leading to demand for more compact, adaptable office layouts that prioritize technology integration.

At the same time, telemedicine isn’t replacing physical locations—it’s supplementing them. Many healthcare groups are expanding their reach by setting up satellite offices in suburban and secondary markets, using a hybrid model that combines in-person and virtual care. This means that medical office space is still in demand, but location and design priorities are shifting.

For investors and landlords, this evolution presents both challenges and opportunities. Properties that cater to flexible layouts, strong internet infrastructure, and hybrid care models will be best positioned for long-term success. Older medical offices with outdated designs or inefficient use of space may require upgrades to stay competitive.

Despite the growth of telehealth, medical real estate remains a strong investment. The key is understanding how healthcare delivery is evolving and ensuring that facilities are designed to support the future of patient care.

If you’re evaluating medical office space in the era of telemedicine, let’s connect. I’ll help ensure your valuation reflects the changing healthcare landscape.