The Real Cost of Mispricing Healthcare Real Estate

In commercial real estate, pricing a property correctly is critical. But in healthcare real estate, the stakes are even higher. Medical office buildings, surgical centers, and senior housing facilities don’t follow the same pricing trends as traditional office or retail spaces. If you misprice a healthcare property, it’s not just about losing money—it can also mean missing out on long-term tenants, delaying crucial services, or even impacting patient care accessibility.

One of the biggest mistakes I see is property owners assuming they can use a blanket approach to pricing, basing their numbers solely on general commercial trends. But healthcare properties are specialized assets, and their value is tied to factors like tenant stability, regulatory requirements, and proximity to major medical hubs.

Overpricing a healthcare property can keep it sitting on the market for months while potential buyers move on to more accurately valued opportunities. Medical tenants aren’t like standard office tenants—they have specific needs and aren’t looking to relocate frequently. If they’re going to invest in a space, they need to know it’s priced fairly and fits their long-term operational plans.

On the flip side, underpricing can be just as damaging. If you’re selling a property with a long-term lease in place from a strong medical group, that stability should be factored into the price. Healthcare real estate is often recession-resistant, making it a more valuable asset than other commercial properties. Undervaluing it leaves significant money on the table.

Accurate pricing isn’t just about comps—it’s about understanding the unique dynamics of healthcare real estate. The right valuation considers medical market trends, tenant demand, and even shifts in healthcare policies that might impact property use. That’s why professional appraisals are essential before listing, refinancing, or purchasing healthcare properties.

If you want to ensure your healthcare real estate is priced right and positioned for success, reach out today. Let’s make sure your valuation reflects the true worth of your asset in this specialized market.