Why Medical CRE Needs More Than Comps
- Shane Lovelady
- Sep 2
- 1 min read
Comps are the first thing many people ask for in a medical real estate deal. They want to know what traded down the street, what the cap rate was, and how many dollars per square foot it pulled. That data matters, but in this sector it is not enough on its own.
Two medical buildings that look the same on paper can perform very differently in practice. One might be filled with specialists that align perfectly with local demographics and referral networks. The other might be leased to groups that are already feeling pressure from reimbursement changes or physician shortages. Both may trade at similar metrics, but the real value is miles apart.
This is where market intelligence comes into play. Looking beyond the comps means understanding the operators inside, their payer mix, their referral sources, and the competitive environment around them. That kind of insight turns a simple comparable into a real assessment of risk and opportunity.
In the valuation space, comps give you a starting point. Market intelligence gives you the whole picture. When you combine the two, you are not just chasing numbers—you are making decisions with staying power.
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