Jon Hipp

The medical sector is one of the quieter, more under the radar property types within the net lease world. Though not as abundant as dollar stores or ubiquitous as fast food; medical net lease properties offer investors steady cash flows, low-to-no management burden, and cap rates which beat out other similarly sized deals. Furthermore, an aging demographic shift will help ensure this asset type remains a viable investment well into the future.

Dissecting the Sector

For the purposes of this analysis we’re defining the medical sector as the service industry that provides healthcare services to the retail public. We’re excluding from this however, the dialysis providers and actual hospitals as they really require their own separate analysis. We’re limiting ourselves here to primary care physicians, specialty medical practices, eye doctors, dentists, urgent care, and plasma donation centers. Most of these businesses operate out of free-standing facilities or end caps in retail/mixed-use centers, generally in highly trafficked areas.

Calkain’s recently released Medical Sector Net Lease Report 2019 noted a cap rate increase to 6.99% from the 6.82% cap rate reported in late 2018. This increase is pretty modest.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

 

GlobeSt Net Lease Fall 2022Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt. Healthcare Real Estate 2022Event

Join the industry's top owners, investors, developers, brokers and financiers for the real estate healthcare event of the year!

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2022 ALM Global, LLC. All Rights Reserved.