When Healthcare Real Estate Gets Priced Like Retail — And Why That’s a Problem

It happens more than you’d think.

A broker pulls comps from retail strip centers to price a behavioral health facility.

A landlord uses standard office assumptions to market a med-surg building.

An investor underwrites like it’s a triple-net Starbucks deal.

And just like that, healthcare real estate gets mispriced.

Here’s the thing—healthcare space doesn’t behave like retail. Or office. Or even industrial.

→ The buildouts are more complex.

→ The tenants are more regulated.

→ The relocation risk is higher.

→ The cash flow is more tied to operations.

Pricing healthcare space requires a real understanding of what’s happening inside the walls—not just what’s on the rent roll.

Is the operator licensed?

How durable is the revenue stream?

What’s the patient volume look like?

What’s the real capex outlook?

Is the location compliant with state regs?

Those are the questions that should drive value—not how many drive-thru pads leased down the street.

In 2025, as more investors chase healthcare assets and more brokers try to pivot into the space, the risk of mispricing is real. And when you get the valuation wrong on the front end, everything downstream—financing, sale, appraisal—gets harder.

Whether you’re an owner, broker, or buyer: make sure you’re using the right lens.

📅 Book a call if you need a valuation that reflects actual healthcare dynamics—not retail math.

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