How is a medical office building valued?

On its net operating income and the cap rate healthcare investors are paying, which is usually lower than general office because the leases are longer and the tenants stay. An owner-occupied or vacant medical building is valued per square foot against medical comparables, with the build-out priced in.

Can I sell the building and keep my practice in it?

Yes, through a sale-leaseback: the lease is agreed first, the building is sold to an investor with your practice as the tenant, and you receive the price at closing. The lease term and the practice's financials set the price.

Do medical tenants need to approve a sale?

No, their leases transfer to the buyer unchanged. They are asked for estoppel certificates confirming the lease terms once a buyer is under contract.

For Owners

Sell Your Medical Office Building in Florida

Name: Sell a Medical Office Building
Brand: BreakThru Realty

A medical building is not general office. Sell yours for what it is.

Sell your medical office building, clinic, dental or specialty building, surgery center or practice-owned real estate anywhere in Florida on its medical value, not as general office. Medical space is built out at a cost general office is not, its tenants stay longer, and investors pay for both. A licensed BreakThru Realty agent prices the building on its medical value, prepares the package healthcare investors expect, and markets it to them and to the practices that would occupy it.

Get My Commercial Property Strategy · (786) 914-1017

BreakThru Realty · Founder and Broker of Record: Tyson E. Sam, Florida License 3565210

Your first step: Property Value & Disposition Review

Start With a Property Value and Disposition Review

Investors and owner-users price your building three ways: against the competition, against closed sales and on its income. The review shows you all three, where they meet, and the ways to sell that fit your timing and your tax position.

What you receive

A broker's opinion of value from closed sales, competing listings and, for an income property, the rent roll and the cap rates buyers are paying
The documents buyers and lenders will ask for, and which to prepare before listing
Disposition options: open-market sale, confidential sale, sale-leaseback or a 1031 exchange, with the trade-offs
The buyer profile for your property type and how we would reach it
A written summary of the figures behind the opinion

What happens next

Tell us the address, the property type and how the building is occupied.
A commercial agent pulls the closed sales and the competing listings and prepares the review.
We call within one business day to walk through it.
You decide whether, when and how to sell.

Free and confidential. It is a broker's opinion of value, not an appraisal, and we never publish an estimate for a specific property.

Get My Commercial Property Strategy · How commercial property is valued

Why Medical Real Estate Is Valued Differently

Exam-room plumbing, heavier electrical, imaging shielding, more restrooms and more parking cost a great deal to build, so a building already fitted for practices is worth more per square foot than the office next door. Practices move rarely because moving means rebuilding, and their leases tend to be long with increases, which is the income investors underwrite. A building near a hospital or in a medical corridor carries a further premium.

Who Buys Medical Office

Healthcare real estate investors and funds that specialise in medical buildings; 1031 exchange buyers who want long leases and sticky tenants; practices and practice groups buying the building they occupy, often with SBA financing; and hospital systems acquiring outpatient space. The buyer pool is national, so the building is marketed beyond the local market.

Practice-Owned Buildings and Sale-Leasebacks

A physician or dental group that owns its building can sell it to an investor and lease it back on a long lease, releasing the equity while the practice stays. The lease is negotiated before the sale, and the stronger the practice's financials and the longer the term, the more the building sells for. Owners selling the practice itself often sell the real estate separately for more than a combined sale brings.

Preparing the Building

The rent roll with lease abstracts and copies of the leases; operating statements; the parking count against the medical requirement; the build-out by suite (plumbing, medical gas, shielding, generators); roof, air conditioning and elevator records; the survey, zoning and certificate of use for medical; and any hospital affiliation or restriction. Practice financials, where the practice is the tenant, go to buyers under a confidentiality agreement.

Marketing and the Sale

An offering package under confidentiality agreement; the MLS listing; BreakThru Realty's medical office pages and direct outreach to registered healthcare investors and the practices looking for space in that area; and the brokers who specialise in healthcare real estate. Letters of intent, a contract with a due-diligence period, estoppels from the practices, and closing coordinated with your attorney and the buyer's lender.

Questions you may be asking

Can the sale be kept confidential?: Yes. Financials go only to buyers who sign a confidentiality agreement, tours are by appointment, and a tenant-occupied building can be marketed without disturbing the tenants. The review sets out the options and the MLS rules that apply.
What does it cost to sell?: The commission is negotiable and agreed in writing in the listing agreement before anything is marketed. Other seller costs usually include title and closing charges and Florida documentary stamp tax on the deed; your closing agent confirms the figures.
I am thinking about a 1031 exchange.: Tell us before you sign anything: the exchange has to be set up before the sale closes. The review covers the timing, and your CPA and a qualified intermediary handle the tax side.
How long will it take?: Longer than a home. Pricing, marketing, a due-diligence period that commonly runs 30 to 60 days and financing all take time. The commercial market pages show how long listings like yours have been on the market today.

Request a Broker Pricing Review

On this page you can tell us: the address, rentable square feet and the medical build-out, the practices in the building and their leases, parking, your timing.

Call or text (786) 914-1017 or email sales@breakthrurealty.com. A licensed BreakThru Realty agent follows up within one business day.

Frequently Asked Questions

How is a medical office building valued?: On its net operating income and the cap rate healthcare investors are paying, which is usually lower than general office because the leases are longer and the tenants stay. An owner-occupied or vacant medical building is valued per square foot against medical comparables, with the build-out priced in.
Can I sell the building and keep my practice in it?: Yes, through a sale-leaseback: the lease is agreed first, the building is sold to an investor with your practice as the tenant, and you receive the price at closing. The lease term and the practice's financials set the price.
Do medical tenants need to approve a sale?: No, their leases transfer to the buyer unchanged. They are asked for estoppel certificates confirming the lease terms once a buyer is under contract.