Why Secondary Markets Are Getting Serious Attention in Medical Real Estate

The spotlight used to be on the big metros—Dallas, Phoenix, Atlanta, Nashville. And they’re still strong. But lately, the real action is showing up in second-tier cities and overlooked regions.

Investors are chasing yield. Operators are chasing affordable growth. And both are finding it in places like Chattanooga, Des Moines, Greenville, and mid-sized cities across the Midwest and Southeast.

Here’s why:

1. Lower basis, better margins.

Land and existing assets are cheaper, but the demand is there—especially for behavioral health, urgent care, and senior-focused services.

2. Less competition.

Fewer institutional players means faster deal cycles, less bidding pressure, and more room for creative structuring.

3. Real demographic tailwinds.

These markets are pulling in retirees, young families, and remote workers. They need outpatient care, senior living options, and mental health infrastructure—now.

The big funds are already watching. But the ones who move early—especially local developers or operator-aligned capital—have the advantage.

Don’t wait for everyone else to flood in. If you’re looking for growth, secondary markets are giving you the runway.

Want help identifying high-potential markets or structuring a play? Let’s talk.

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