Many aspects come into play when determining the value of a particular medical office building, and some of them may change a lot from one year to the next. However, some core factors that drive property value for health care real estate remain consistent over time, and understanding what they are may help you successfully navigate the medical real estate market in your area of choice.
Regardless of whether you are looking to sell health care real estate or purchase it, make sure to familiarize yourself with the following terms for a better understanding of a medical property’s true worth.
Location
As you can imagine, medical properties in communities with a high concentration of aging adults are particularly valuable. So are those that exist in easily accessible locations that offer high visibility due to steady traffic. The price of comparable properties in the immediate area is also going to have a hand in determining the value of a particular medical office property.
Use
Most health care providers open practices in one of four types of medical office properties: in traditional office buildings, on hospital campuses, in medical office buildings or in retail or shopping centers. The typical use of the building where you open your practice is going to be a determining factor in its overall value. A medical office for sale in a retail or shopping center, for example, is likely to have plenty of parking and a visible, easily accessible address – both of which may lead to higher price tags. Medical real estate that sits on a hospital campus, meanwhile, may come with a strong referral base, and this, too, impacts value.
Improvements
Many doctors and health care providers are looking for “green” concepts or medical real estate that comes with substantial technological capabilities, among other improvements. Any of these elements that may make a practice more energy-efficient or modern are likely to also impact its value. Other types of improvements, such as updated appliances or highly visible signage, may also increase the value of a medical property.
Need help setting a price for a particular medical office building, or have questions about a particular medical property for sale? Plaza Companies is highly knowledgeable about what drives value in today’s top medical office markets. For assistance with buying or selling medical real estate, call 623.972.1184 or email info@plazaco.com.