Who is the best buyer for my medical or dental building?
For many healthcare properties, there are two very different categories of potential buyers:
1. A commercial real estate investor who wants to own the property and collect rental income.
2. A healthcare professional or practice—such as a dentist, physician, specialist, medical group or other healthcare provider—who wants to purchase the property and operate a practice there.
Depending on your building, leases, location, existing healthcare buildout and your plans after the sale, one type of buyer may see significantly more value in the property than another.
Understanding the difference can help you develop the right strategy before putting your medical or dental property on the market.
Why Would an Investor Buy My Medical or Dental Building?
A commercial real estate investor is primarily evaluating your building as an income-producing investment.
The investor will typically want to know:
- What is the current rental income?
- What is the property’s Net Operating Income (NOI)?
- What expenses does the landlord pay?
- How many years remain on the leases?
- Are there rent increases built into the leases?
- How financially strong are the tenants?
- What are the renewal options?
- What is the likelihood that the tenants will remain?
- Are there significant repairs or capital expenditures coming?
- What return can the investor expect?
For an investor, the existing medical or dental tenant can potentially be one of the property’s greatest assets.
Healthcare practices may have substantial investments in their locations, including specialized plumbing, electrical systems, cabinetry, treatment rooms, imaging areas and other improvements. Relocating a practice can also be expensive and disruptive.
Therefore, a well-located healthcare property with a strong tenant and favorable lease may be attractive to an investor seeking dependable rental income.
Not Sure Who the Best Buyer Is for Your Medical or Dental Property?
Before you list your medical or dental building, let’s determine who may be willing to pay the most for it.
An investor may value your property based on its NOI, lease terms and investment return. A dentist, physician or other healthcare professional may place additional value on the location, existing medical or dental buildout, specialized plumbing, operatories, treatment rooms, parking and the cost of recreating those improvements somewhere else.
The right strategy may be to market your property to both.
I specialize in healthcare commercial real estate and help medical and dental property owners evaluate their property, identify the most likely buyers and develop a marketing strategy designed to maximize exposure and value.
Thinking About Selling?
Schedule a confidential, no-obligation consultation to discuss your medical or dental property.
We’ll discuss:
- What your property may be worth
- Whether an investor or healthcare owner-user may be the stronger buyer
- How your existing buildout could affect marketability
- Whether you should sell occupied or vacant
- Whether a sale-leaseback should be considered
- How to position and market the property to reach qualified buyers
Don’t list your healthcare property until you understand who may be willing to pay the most for it.
Contact Sharon Bogetz | Healthcare Commercial Real Estate Specialist
Century 21 Universal
📞 847-370-9131
✉️ Sharon.Bogetz@gmail.com