Surgery isn’t just happening in hospitals anymore. Specialty surgery centers, including ambulatory surgery centers (ASCs), orthopedic clinics, and outpatient surgical hubs, are expanding rapidly —and reshaping the medical real estate landscape in the process. These facilities offer cost-effective, high-quality care  in a setting that’s more convenient for patients and providers alike. The demand for specialty surgery centers has exploded as healthcare shifts away from traditional hospital settings.  Patients and insurers are increasingly favoring outpatient procedures  because they reduce hospital costs while maintaining high standards of care. This shift has direct implications for medical real estate , creating opportunities for investors, property owners, and healthcare systems. One of the biggest advantages of surgery centers from a real estate perspective is their long-term stability.  Unlike general medical offices that may be leased for shorter terms, surgery centers require highly customized build-outs  to accommodate surgical suites, recovery areas, and advanced equipment. This level of specialization means tenants are more likely to sign long-term leases , ensuring lower turnover rates and stronger property valuations. Another key factor driving their real estate value is location strategy.  Surgery centers are often placed in affluent suburban areas or near major healthcare hubs , giving patients easier access to procedures without the hassle of a full hospital visit. These locations not only make care more accessible but also increase property value due to high patient demand and strong referral networks. However, not all surgery centers are created equal.  While some are backed by hospital systems or private equity groups , others are independently operated, which can affect tenant creditworthiness and financial stability.  Investors and appraisers need to assess lease terms, ownership structure, and long-term viability  when determining property value. Regulatory considerations also play a role. Some states require Certificate of Need (CON) approvals for new surgery centers , while others have fewer restrictions, making it easier for these facilities to expand. This legal landscape can directly influence property demand and valuation trends  in different markets. At the end of the day, specialty surgery centers are one of the fastest-growing sectors in medical real estate.  Their combination of patient demand, cost efficiency, and long-term lease stability  makes them a prime asset for investors and property owners. If you’re evaluating a surgery center property or need an appraisal that captures its full market potential, let’s talk. I’ll help ensure your valuation reflects the growing demand for these high-value medical assets.

Emergency care is evolving, and freestanding emergency departments (FSEDs)  are at the forefront of that transformation. These facilities are changing the way patients access emergency services, providing quicker, more convenient care in suburban and underserved areas.  And as the demand for these facilities rises, so does their impact on medical real estate valuations and investment trends. Unlike traditional hospital-based emergency rooms, freestanding ERs operate independently  while offering the same level of emergency care—often with shorter wait times and easier access. Their growth is fueled by healthcare decentralization , as hospitals look to expand their reach without the cost of building full-scale medical campuses. From a real estate perspective, FSEDs offer high-value, stable investments.  They typically sign long-term, triple-net leases , ensuring consistent income for property owners. Because they require specialized build-outs , including advanced imaging equipment, lab facilities, and high-tech emergency treatment areas, these properties often command higher valuations than standard medical office buildings. Another key factor driving demand for FSEDs is location strategy.  These facilities are often placed in growing suburban areas, near highways, or in regions with limited hospital access , ensuring a steady flow of patients. Their ability to serve as a safety net for overburdened hospital ERs  makes them a critical part of the healthcare system, adding long-term viability to their real estate value. However, the rise of freestanding emergency departments isn’t without challenges. Reimbursement structures, regulatory approvals, and competition from urgent care centers  all play a role in determining their financial success. Appraisers and investors must consider the strength of the operator, local healthcare demand, and evolving reimbursement policies  when assessing property value. At the end of the day, FSEDs represent a growing niche in medical real estate that offers strong returns for investors and healthcare providers alike.  Their combination of patient accessibility, high-demand services, and long-term lease stability  makes them a valuable asset in today’s evolving healthcare market. If you’re evaluating a freestanding emergency department property or need an appraisal that accounts for its unique market position, let’s talk. I’ll help ensure your valuation reflects the full potential of this growing sector.

If you’ve walked through a shopping center or passed by an old big-box store lately, you may have noticed a trend: more and more retail spaces are being converted into medical facilities.  Urgent care centers, imaging clinics, and even surgical centers are now setting up shop in former department stores, grocery chains, and strip malls. It’s a shift that’s reshaping both the retail and medical real estate markets , and it’s creating major investment opportunities. So why are healthcare providers moving into spaces once occupied by retailers? Convenience, accessibility, and cost.  Retail locations were designed to handle high foot traffic, easy parking, and prime visibility —the same factors that make a great medical facility. Patients today want quick, accessible healthcare options close to home,  and repurposed retail spaces allow providers to deliver exactly that. Financially, repurposing a retail space is often cheaper and faster  than building a new medical facility from the ground up. Large retail spaces already have the square footage, infrastructure, and zoning  to support healthcare operations, cutting down on development costs. And in areas where malls and shopping centers are struggling, landlords are eager to fill vacancies with long-term, stable medical tenants. For investors and property owners, this shift is a goldmine.  Medical tenants tend to sign long-term, triple-net leases , meaning they handle most property expenses themselves. Unlike traditional retail businesses, healthcare providers aren’t as vulnerable to market trends or economic downturns.  People will always need medical care, making these tenants more financially reliable  than many retailers. From an appraisal perspective, repurposed retail spaces are unique.  Their value depends not just on the building itself, but on how well the space has been adapted for medical use . Appraisers look at everything from interior renovations and compliance with healthcare regulations to market demand and tenant stability.  A former big-box store turned into an outpatient surgery center will have a very different valuation than a strip mall urgent care clinic, even if they were both originally built for retail. There are also zoning and regulatory considerations.  Some local governments are fast-tracking approvals  to encourage healthcare expansion into vacant retail properties, but others still have strict permitting requirements  that can slow the process. Investors and developers need to factor this in when evaluating the true value of a repurposed space. At the end of the day, the shift from retail to medical is one of the smartest plays in real estate right now.  It combines the accessibility of retail locations with the stability of healthcare tenants , creating long-term value in an evolving market. If you’re looking at repurposed retail properties for medical use or need an appraisal that captures the full potential of these assets, let’s talk. I’ll help ensure your valuation reflects the changing landscape of medical real estate.

Medical real estate isn’t just shaped by market demand and tenant mix—it’s also heavily influenced by regulatory hurdles , and few regulations have a bigger impact than Certificate of Need (CON) laws.  These state-level regulations determine whether a healthcare provider can open, expand, or relocate  certain facilities, and they have a direct effect on property valuations. For those unfamiliar, CON laws were originally designed to prevent oversaturation of healthcare facilities  and to ensure equitable access to care. In states with strict CON requirements, a provider can’t just set up a new surgery center or imaging facility because they see an opportunity. They must first prove to the state that there’s a need for that service in the area. This creates both limitations and opportunities in medical real estate. From an appraisal standpoint, CON laws can act as a value booster . If a healthcare provider secures a CON to operate a specific type of facility in a high-demand area, that property gains a competitive advantage.  Because not just anyone can open a competing facility nearby, the existing property holds a protected market position , making it more attractive to investors. On the flip side, CON laws can also stifle competition and slow market growth . In states with strict regulations, the approval process can be lengthy and unpredictable. This means healthcare real estate projects can get stuck in limbo , and properties that might otherwise be in high demand can struggle with uncertainty. A hospital or specialty clinic planning to expand into a new market might face years of legal and bureaucratic delays before they can even break ground. Another key factor is tenant stability.  A healthcare provider operating in a CON-restricted area is less likely to relocate, since obtaining approval elsewhere would be a major hurdle. This often translates to longer lease agreements and lower vacancy risk —a big plus for property owners and investors. However, in states that have repealed or relaxed CON laws , we’re seeing increased competition , which can shift property values in both directions. More providers entering the market can drive higher demand for medical real estate , but it can also lead to market saturation , making location and facility specialization more important than ever. For appraisers, understanding CON laws is essential to accurately valuing medical real estate. Does the property hold a protected market position? Does the tenant’s business model rely on CON approval? Could regulatory changes impact future demand?  These questions all factor into the appraisal process. At the end of the day, Certificate of Need laws add a unique layer to medical real estate valuations , creating opportunities for some properties while restricting growth for others. If you’re buying, selling, or appraising medical real estate in a CON-regulated state, let’s connect. I’ll help ensure your valuation reflects the full impact of these regulations.

Private equity has been making waves in healthcare for years, but one of the biggest shifts happening now is in medical real estate.  As PE-backed healthcare groups continue acquiring practices and expanding their footprints, they’re changing how medical properties are valued, leased, and operated. For property owners and investors, the involvement of private equity can be a game-changer.  When a healthcare provider is acquired by a PE firm, it often brings increased financial backing, a stronger operational model, and expansion plans that can drive long-term property stability.  If a medical office or specialty clinic is leased by a provider with PE support, it often signals low vacancy risk and higher investor confidence —both of which positively impact property valuations. On the flip side, the nature of private equity means that short-term financial goals can sometimes create market volatility.  PE-backed healthcare groups tend to focus on scalability, cost efficiency, and maximizing returns within a set investment period.  This means that while some medical properties benefit from expansion and lease renewals, others may see sudden changes in occupancy as firms consolidate operations, relocate practices, or restructure their portfolio. From an appraisal standpoint, the strength of the tenant matters.  A PE-backed practice with a long-term lease, strong reimbursement streams, and a stable patient base can significantly increase the value of a property. However, properties leased to practices that are in the middle of restructuring or aggressive cost-cutting strategies may present higher risks, leading to more conservative valuations. There’s also the question of sale-leaseback transactions.  Many private equity firms use sale-leasebacks as a strategy to free up capital, selling the real estate of an acquired healthcare group while keeping the business operations running. This model can be highly beneficial for investors— as long as the lease agreements are solid and financially sustainable.  If the lease terms are too aggressive or based on inflated market rents, it can create long-term risks for the property’s value. At the end of the day, private equity’s role in medical real estate is only growing.  For property owners, understanding how PE involvement affects a tenant’s financial health and long-term stability is crucial. For investors, knowing when a PE-backed healthcare group adds value—and when it presents risks—can make all the difference in a deal. If you’re evaluating a medical property with PE-backed tenants or considering how private equity might impact your real estate holdings, let’s talk. I’ll help ensure your valuation reflects the full picture.

For years, medical real estate was primarily concentrated in urban hubs , with hospitals, specialty clinics, and large healthcare networks setting up shop in city centers. But that’s changing. The rise of outpatient care, telehealth, and patient demand for convenience has fueled a major shift toward suburban medical real estate.  And that shift is reshaping property valuations. Healthcare has always followed population trends, and in recent years, more people are moving to suburban areas.  Rising housing costs, remote work flexibility, and an increased focus on quality of life have led to significant population growth outside of major cities. With that shift comes an increased need for accessible medical care closer to where people live. Providers are recognizing this trend and expanding into suburban medical office buildings, urgent care centers, and specialty clinics.  Instead of expecting patients to commute into the city for care, health systems are strategically placing facilities in growing suburban markets. This decentralization of healthcare has made suburban medical real estate some of the most sought-after property in the industry. One of the biggest drivers behind this shift is the rise of outpatient and specialty care.  More procedures are being performed outside of hospitals, and suburban areas are seeing a surge in demand for ambulatory surgery centers, imaging facilities, and behavioral health clinics.  These facilities require long-term leases and specialized build-outs , which in turn boosts property valuations and investment interest. Accessibility is another key factor. Suburban medical properties typically offer larger parking lots, easier highway access, and lower operating costs compared to urban facilities.  These conveniences make suburban locations particularly attractive to healthcare providers looking to serve high-volume patient populations efficiently. From an appraisal standpoint, this trend has major implications. Medical properties in suburban areas with strong population growth, solid infrastructure, and proximity to referral sources  are seeing increased valuations. Appraisers are also looking at zoning flexibility , as more suburban municipalities are embracing medical developments in response to growing demand. This shift doesn’t mean urban healthcare is disappearing—it just means that suburban medical real estate is becoming an equally powerful asset class.  Investors and developers who understand this trend are well-positioned to capitalize on rising demand, long-term lease stability, and lower competition compared to oversaturated urban markets. If you’re looking at suburban medical real estate opportunities or need an appraisal that reflects these evolving market trends, let’s connect. I’ll ensure your valuation captures the full potential of this growing sector.

Behavioral health has long been an underserved area in healthcare, but that’s rapidly changing. As mental health and substance abuse treatment gain recognition as essential services, the demand for behavioral health facilities  is skyrocketing—and so is their value in the medical real estate market. For years, behavioral health was often tucked into hospital wings or outdated facilities. Now, we’re seeing standalone psychiatric hospitals, substance abuse centers, and outpatient mental health clinics  becoming critical parts of the healthcare landscape. This shift isn’t just improving patient care—it’s creating a new class of high-demand real estate assets. One reason behavioral health facilities are gaining value is simple: demand far outstrips supply.  The growing need for mental health services—driven by everything from pandemic-related stress to increased awareness around addiction—means that facilities providing these services are often at capacity. Investors and lenders see this demand as a sign of long-term stability, which translates to higher property valuations and competitive market interest. But it’s not just about demand. Behavioral health facilities often require specialized build-outs , from patient-safe interiors to secure access points and therapeutic spaces. These customizations add significant value to the property itself. Unlike a standard medical office, a behavioral health facility is highly tailored to its function, making it more difficult to replace or relocate. That level of specialization gives property owners an edge when it comes to securing long-term tenants. Another factor driving value is the shift in reimbursement models.  With more insurers covering mental health services and states expanding Medicaid for behavioral health, these facilities are seeing improved financial performance.  A stable, well-funded tenant is gold in real estate, and behavioral health providers are increasingly fitting that profile. Location also matters. Behavioral health facilities located near hospitals, residential communities, and transportation hubs  tend to see higher valuations due to accessibility and referral networks. Appraisers take into account how well-positioned a facility is to serve its patient base, knowing that ease of access directly affects operational success. There’s also a growing trend of private equity investment in behavioral health , which is reshaping the market. As larger healthcare groups acquire smaller behavioral health providers, the facilities they operate in become even more valuable, with stronger financial backing and long-term lease agreements. Ultimately, behavioral health facilities are no longer afterthoughts in medical real estate—they’re prime assets with strong demand, specialized infrastructure, and stable financials. If you’re exploring opportunities in behavioral health real estate or need an appraisal that captures the full value of these properties, reach out today. Let’s make sure your valuation reflects the growing importance of behavioral health in healthcare real estate.

Medical real estate doesn’t exist in a vacuum. It’s tied directly to the financial health of the healthcare providers who occupy the space. And few things impact that financial health more than how providers get paid.  As reimbursement models shift—from fee-for-service to value-based care— the ripple effects are being felt in medical real estate valuations. For decades, fee-for-service was the norm. Providers were reimbursed based on the number of services they performed. More tests, more procedures, more appointments meant more revenue. For medical real estate, this often meant larger facilities with higher patient volumes and steady cash flow. But with the move to value-based care , the focus has shifted from quantity to quality. Providers are now being reimbursed based on patient outcomes, efficiency, and cost savings. This change doesn’t just affect how care is delivered—it impacts where and how healthcare providers choose to operate. Outpatient facilities, telehealth hubs, and specialty clinics are growing in demand as providers seek cost-effective ways to deliver care  while meeting value-based benchmarks. Medical real estate in these sectors often sees rising valuations, as investors recognize the stability and growth potential. But properties tied to older models—like large, hospital-based practices or sprawling specialty offices—may face challenges if they can’t adapt to the new reimbursement landscape. Appraisers are paying close attention to how these changes affect tenant financials. A property leased by a provider struggling with reimbursement cuts or declining patient volume is inherently more risky. On the other hand, facilities housing providers who’ve successfully adapted—through partnerships, tech adoption, or operational efficiency— hold stronger value. Location matters too. States with Medicaid expansion or progressive reimbursement policies  often see increased demand for healthcare services, boosting property values. Conversely, areas with slow policy adoption or high uninsured rates may see more volatility. Even lease structures are being influenced by reimbursement trends. Healthcare providers are negotiating more flexible leases, anticipating that their needs may change as payment models evolve. Appraisers have to consider whether a lease is structured to withstand these changes or if it adds to the property’s risk profile. At the core, changing reimbursement models are forcing the medical real estate market to evolve. Properties that can support cost-efficient, outcome-driven care  are thriving, while those stuck in outdated models are facing tough questions. If you’re evaluating medical real estate and want to understand how reimbursement models impact value, reach out today. I’ll help ensure your appraisal reflects the realities of today’s healthcare market.

Medical office condominiums are becoming an increasingly popular choice for healthcare providers, and it’s not hard to see why. Owning space rather than leasing it gives providers more control, potential financial benefits, and long-term stability.  But this shift from traditional leasing to ownership models is also having a noticeable impact on medical real estate valuations. In a typical medical office building, you’re looking at one owner who leases space to multiple tenants. The value is tied to rental income, lease terms, and tenant stability. But with medical office condos, each provider owns their individual suite  while sharing common areas with other owners. This model changes the way we think about value. Suddenly, it’s not just about rental income—it’s about the market value of each individual unit, the strength of the ownership association, and the demand for medical space in that location. One of the biggest drivers behind the popularity of medical office condos is the desire for ownership.  Healthcare providers, especially independent practices, are drawn to the idea of owning their space. It offers them the ability to build equity, customize their suites to fit their needs, and avoid the uncertainty of lease renewals or rent hikes. From an appraisal standpoint, this strong demand for ownership often boosts the value of well-located medical office condos. But with ownership comes complexity. Appraising medical office condos isn’t as straightforward as appraising a single-owner building. You have to consider the financial health of the condo association, shared maintenance costs, and any restrictions on how the property can be used or modified.  A well-managed association with solid reserves and clear governance can add value, while one with financial instability or legal issues can drag it down. There’s also the question of market demand.  Not every area is suited for medical office condos. In high-demand healthcare markets—think growing suburbs, urban centers, or regions with aging populations—condos can thrive. But in markets where providers prefer flexibility or where financing for medical condo purchases is limited, values may be more volatile. Appraisers need to have a deep understanding of local market conditions, healthcare trends, and provider preferences  when valuing these properties. Another key factor is the cost of ownership versus leasing.  While owning can be appealing, it comes with added responsibilities—property taxes, maintenance fees, and capital improvements. Appraisers analyze these costs, comparing them to market lease rates to assess whether ownership truly adds long-term value or creates financial strain. Technology and infrastructure also play a role. Medical office condos often require significant build-outs for specialized equipment, patient care spaces, and tech infrastructure. A condo that’s already equipped for complex medical use is going to be valued higher than a shell space needing extensive improvements. At the end of the day, medical office condominiums are reshaping how we think about healthcare real estate. They offer providers a path to ownership and stability while creating new challenges and opportunities for investors, lenders, and appraisers. Understanding this growing segment is essential for accurate valuations and smart investment decisions. If you’re considering a medical office condominium or need an appraisal that captures the full value of this unique ownership model, reach out today. Let’s ensure your valuation reflects everything that makes your property stand out.

Technology has changed nearly every aspect of our lives, and healthcare is no exception. But while most people think about technology’s impact on patient care or medical advancements, there’s another area where it plays a significant role— medical real estate valuations.  As healthcare providers adopt new technology, the demands on their physical spaces change, and those changes directly influence property value. One of the biggest shifts has come from telemedicine.  Virtual care surged during the pandemic, but it’s not going away anytime soon. While some feared that telehealth might reduce demand for physical medical spaces, the reality is more complex. Many providers are now using hybrid care models —combining in-person visits with virtual consultations. This has changed how medical spaces are designed, with an increasing focus on tech-enabled exam rooms, digital infrastructure, and patient privacy features.  Properties that are already equipped for this new way of delivering care are often valued higher because they’re future-proofed for ongoing technological advancements. Advanced medical equipment also plays a big role in valuations. Imaging centers with state-of-the-art MRI or CT machines, surgical facilities equipped with robotic surgery systems, and specialty clinics with advanced diagnostic tools all represent significant investments. These aren’t just assets for the healthcare providers—they’re part of the property’s value.  When a building is designed to house complex technology, it often means specialized build-outs, enhanced electrical capacity, and high-cost infrastructure,  all of which increase the property’s worth. Technology also impacts operational efficiency,  which appraisers don’t overlook. Facilities that use electronic health records (EHRs), digital scheduling systems, and automated patient check-ins  often operate more smoothly, allowing them to see more patients and generate higher revenue. That operational strength contributes to the financial health of the tenant, making the property a more stable investment. Even things like cybersecurity and data storage  are becoming factors in medical real estate valuations. Healthcare facilities handle sensitive patient data, and properties with secure, tech-enabled systems for managing that data are increasingly in demand. In some cases, the ability to support robust technology infrastructure is just as important as physical features like parking or accessibility. What’s interesting is that technology isn’t just adding value—it’s also creating new challenges.  Properties that can’t support modern medical technology may see their valuations dip, even if they’re otherwise well-located and maintained. An outdated building with limited tech infrastructure can be a tough sell in a market where connectivity and digital capabilities are non-negotiable. At the end of the day, medical real estate isn’t just about square footage or location anymore. It’s about how well a property supports the technology that drives modern healthcare.  From telemedicine capabilities to advanced equipment and digital operations, technology is becoming an essential part of every appraisal. If you’re navigating medical real estate and want to understand how technology impacts your property’s value, reach out today. I’ll help ensure your valuation reflects the full scope of what your property offers.

In medical real estate, not all properties are created equal.  A medical office building leased by a primary care practice is valuable—but a property housing a surgical center, dialysis clinic, or imaging facility ? That’s a different level entirely. Specialized medical facilities carry unique value drivers  that often push their appraisals higher than standard healthcare spaces. The biggest factor behind this value is build-out cost and specialization.  Unlike a typical medical office, specialized facilities require highly customized infrastructure —think surgical suites, medical gas lines, lead-lined walls for imaging, and advanced HVAC systems for infection control. These aren’t cosmetic improvements—they’re essential to the facility’s operation and come with huge upfront costs . Because these build-outs are so specific and expensive, tenants rarely relocate , leading to long-term leases and stable cash flow  for property owners. Then there’s the type of care provided.  Specialized facilities often serve patients with chronic or acute healthcare needs , which creates consistent, year-round demand. A dialysis center, for example, serves patients multiple times per week, making it an essential healthcare destination.  Similarly, an ambulatory surgery center (ASC) offers same-day procedures  at lower costs than hospitals, making them a critical part of modern healthcare delivery . This steady patient flow directly supports tenant stability and long-term viability —both of which drive property value. Another reason these properties hold value is the operational complexity of the business inside.  Specialized healthcare providers invest heavily not only in the space but also in their staff, equipment, and patient base. Moving their operation isn’t just inconvenient—it’s disruptive and costly. This creates a “stickiness” to the lease , meaning they’re more likely to renew and maintain their location. From an investor’s perspective, that translates to lower vacancy risk and predictable income. Market demand also plays a major role. With an aging population and the rise of chronic conditions, demand for specialized services like cardiology, oncology, behavioral health, and rehabilitation  continues to climb. Properties that can support these services, especially those near hospital systems or within high-demand healthcare corridors, become prime assets  in a portfolio. Appraisers understand that the value of specialized medical real estate isn’t just in the building—it’s in the combination of high build-out investment, stable tenants, consistent patient demand, and operational complexity.  These properties often trade at lower cap rates , reflecting their strength as long-term investments. In short, specialized medical facilities are more than real estate—they’re critical healthcare assets . Their value comes from their ability to deliver stable returns, long-term occupancy, and essential services  that the community depends on. If you’re exploring a specialized medical property or need an appraisal that captures the full value of its use, let’s talk. I’ll ensure your property’s valuation reflects everything that makes it unique.

In medical real estate, location isn’t just about visibility or foot traffic—it’s about access to the healthcare ecosystem.  And few factors carry more weight than proximity to a hospital or major healthcare system. The closer a property is to a hospital, the stronger its position in the market. But why does this matter so much, and how does it affect valuations? Let’s break it down. The relationship between hospitals and surrounding medical facilities is all about referral networks and patient flow.  Medical offices, surgery centers, imaging facilities, and specialty clinics thrive near hospitals because they tap into a built-in pipeline of patients. When a provider is located just minutes from a hospital, it’s easier for them to coordinate care, accept referrals, and handle follow-up visits —and that’s exactly what makes these properties more valuable. Hospital proximity also boosts tenant stability.  Large healthcare systems often lease or purchase space close to their main campuses, and their presence typically means long-term, creditworthy tenants. Even independent providers prefer locations near hospitals to access referrals and serve hospital-affiliated patients. This kind of tenant mix— stable, established, and healthcare-focused—drives predictable rental income , which translates to stronger property valuations. But it’s not just about tenants. Hospitals are magnets for entire healthcare ecosystems . The area around a major hospital often becomes a medical corridor , attracting pharmacies, outpatient facilities, diagnostic centers, and specialist offices. Properties in these corridors benefit from increased demand and lower vacancy rates , creating a competitive market where values remain strong. Timing and accessibility matter too. Being close to a hospital can reduce patient transportation times , which is critical for specialty services like ambulatory surgery centers or urgent care facilities. It’s not just convenient—it’s often part of provider agreements and insurance network preferences , making locations near hospitals more desirable for tenants. Of course, there are layers to this. Hospital proximity is most valuable when it matches the right type of healthcare service . A rehabilitation center or imaging facility thrives near a hospital because it captures downstream patient flow. On the other hand, a behavioral health facility may not depend as heavily on hospital referrals, making proximity less critical to its valuation. When it comes to appraisals, hospital proximity isn’t just a perk—it’s a value driver.  Appraisers factor in not only distance but also ease of access, hospital reputation, and the size of the healthcare system.  A property next to a large regional hospital with a strong specialty program may be worth significantly more than a similar building near a small community hospital with limited services. In the end, being near a hospital connects a medical property to the heart of the healthcare system.  It brings patients, providers, and stability together, which is exactly what lenders, investors, and operators want to see reflected in an appraisal. If you’re considering buying, selling, or appraising medical real estate near a hospital, let’s connect. I’ll help you understand how proximity shapes value and what it means for your property’s potential.