The Finance Shift You Won’t See on the OM

There wasn’t a big headline in healthcare real estate this past week—but there was a signal.

Credit spreads in the commercial real estate world started to widen. It’s being driven in part by rising tariff tensions, which have added a layer of economic uncertainty just as things were starting to stabilize.

And while that may sound like a capital markets issue, it’s already working its way into valuations—especially in niche spaces like behavioral health, medical office, and senior living.

Here’s why:

Valuation isn’t just about cap rates and comps. It’s about understanding the real-time cost of capital, the risk profile of the asset, and what buyers and lenders are willing to take on right now.

When spreads widen, debt gets more expensive.

When debt gets more expensive, buyers get more cautious.

And when buyers get more cautious, values shift.

Lenders are also tightening up—asking more questions about tenant quality, lease terms, buildout risk, and licensing exposure. That changes how appraisals are being approached and how underwriters are modeling income and risk.

For owners, investors, and even operators trying to refi or position a facility for sale, it’s critical to understand that the financing environment is no longer neutral. It’s leaning conservative again.

A behavioral health facility with strong tenancy and licensing in place still holds weight—but gone are the days of casual underwriting and aggressive growth projections.

If you’re preparing for a valuation in this environment, you need someone who speaks the language of lenders, understands operational nuance, and can defend the value from both a clinical and capital markets perspective.

That’s where we come in.

📅 Book a call to make sure your property valuation reflects what today’s market—and lenders—are actually thinking.

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