Why More Healthcare Deals Are Falling Apart in the Final Stretch

In 2025, the demand for healthcare real estate is still there. The capital? Still out there too. But more deals—good ones—are dying late in the process.

Everything seems fine until it isn’t.

Buyer signs the LOI.

Lender gives the nod.

Due diligence starts… and then everything grinds to a halt.

So what’s going wrong?

→ Incomplete or outdated valuations. Comps from 2022 don’t cut it anymore—especially in markets where cap rates and tenant performance have shifted.

→ Licensing red flags. Operators that don’t have clean, transferable licenses—or facilities that are out of compliance—send buyers running.

→ Ambiguous lease terms. Leases without clear escalation, renewal, or expense clauses raise uncertainty and underwriting delays.

→ Undisclosed capex needs. HVAC systems, roofs, or outdated surgical infrastructure can become deal breakers when they show up on inspection reports.

→ Tenant financials not matching the story. Buyers are digging deeper. If the rent’s high but the operator’s margins are thin, trust starts to erode.

The result? Buyers pull out, lenders get cold feet, or pricing gets retraded. None of which help a seller close strong—or a broker maintain credibility.

What’s the fix?

→ Get valuations updated with fresh data and realistic assumptions.

→ Clean up lease language before the property hits the market.

→ Package tenant and licensing info clearly.

→ Disclose issues early and frame them correctly.

📅 Want help tightening up your deal prep? Book a call.

📬 Subscribe here for weekly insights on how to get healthcare real estate deals across the finish line in this market.

Because in this cycle, the win isn’t getting interest—it’s getting to closing.