Why Healthcare Real Estate Activity Isn’t Slowing Down This Summer

While other sectors might hit a lull during the summer months, healthcare real estate is moving full steam ahead in mid-2025. Behavioral health deals are closing fast, outpatient rehab centers are seeing increased demand, and well-positioned medical office buildings (MOBs) are trading at competitive cap rates.

So, what’s driving the heat?

1. Behavioral Health Remains the Hot Button

Facilities serving behavioral and mental health continue to outperform. As more insurance providers expand behavioral coverage—and with the recent regulatory tailwinds in states like Georgia and Michigan—investors are finding real value in facilities that were once considered niche.

Residential treatment centers, outpatient psychiatric clinics, and integrated behavioral care models are all seeing increased attention, especially from private equity groups and regional operators looking to scale.

2. MOBs With Purpose Are Leading Demand

Generic MOBs are seeing mixed activity, but those that serve purpose-built functions—oncology, cardiology, urgent care—are still drawing strong offers. The name of the game right now is stability and specificity.

New leases from health systems are often longer, and NNN structures remain the preferred setup for both buyers and tenants.

3. Inpatient Rehab is Making a Comeback

Inpatient medical rehab hospitals (IRFs) are experiencing a revival after several years of slower growth. CMS payment updates and strong post-acute demand have created a favorable reimbursement landscape. Operators are revisiting development plans that were paused during COVID-era uncertainty.

4. Investors Want Assets With a Story

Deals are still happening, but they’re more strategic. Buyers want facilities that align with long-term care trends—aging demographics, chronic condition management, and value-based care delivery. Assets tied to reputable operators or health system partnerships are commanding premium pricing.

At Lovelady Perspective, we help healthcare investors, developers, and brokers navigate today’s fast-moving market with insights and valuations built around real-world performance—especially in behavioral health and senior living.

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