Why Rent Rolls Can Mislead in Medical CRE

A rent roll looks straightforward. You see who is paying, how much they are paying, and how long their lease runs. On paper it feels like the cleanest way to judge stability. But in medical real estate, rent rolls often hide more than they reveal.

A building can show one hundred percent occupancy and still carry real risk. If a key tenant is operating on thin margins, if reimbursement trends are moving against their specialty, or if referral networks are shifting, the income line on that rent roll is not telling you the full story. In some cases, the building that looks bulletproof on paper is actually more fragile than one with partial vacancy but stronger operators.

This is why market intelligence matters so much in the valuation space. Rent rolls are a tool, but they are not the conclusion. The real question is how durable the tenants are, how secure their revenue streams look, and how well the property aligns with the broader healthcare landscape. That is the difference between simply collecting numbers and truly understanding value.

Medical CRE works best when you can look past the surface and see the story behind the leases. That is where the right intelligence can change the outcome of an investment or a lending decision.

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