Why Licensing Risk Is Becoming a Bigger Factor in Healthcare Real Estate Deals

A great building.

A solid operator.

A long-term lease.

But no one noticed the state license was tied to a different address—and now the deal’s on hold.

Welcome to the world of licensing risk in healthcare real estate.

In 2025, this issue is coming up more often—and it’s quietly derailing transactions. Whether it’s behavioral health, assisted living, or surgical centers, the regulatory landscape is tight. And real estate that looks good on paper can hit unexpected delays—or outright collapse—if the licensing component isn’t rock solid.

Here’s how it plays out:

→ Buyers discover during diligence that a facility’s operating license isn’t portable

→ A change in ownership or use triggers a reapplication or site inspection

→ A delay in re-licensing halts occupancy, which halts rent, which kills financing

And on the seller’s side, it can mean retrades, reputation damage, and lost time.

So what should owners, brokers, and investors do?

• Understand what licenses are in place, and whether they’re address-specific

• Confirm how changes in ownership or tenancy impact the license status

• Factor licensing into your due diligence checklist—not just your financial one

For appraisers, this also affects value. A facility that’s licensed, compliant, and transferable is worth more than one with regulatory gray areas—even if the rent rolls are identical.

📅 Want to make sure your property is ready for market—or that your purchase won’t stall over licensing issues? Book a call and let’s walk through it.

📬 Or subscribe here to keep up with the behind-the-scenes risks that are shaping deal success in 2025.

Licensing isn’t just a clinical issue—it’s a real estate one. And it’s showing up more than ever.