Medical Real Estate

What Most Physicians Miss About Medical Real Estate Value—and How to Fix It

Thousand Oaks ASCAre you undervaluing one of your biggest assets? Many physician-owners focus on building and managing their ambulatory surgery center (ASC) or medical practice. But often, they overlook how much value is tied to their medical real estate. That oversight can limit financial opportunities—especially when it’s time to transition or retire.

At ASC Realty Advisors, we help physician-owners take a more strategic approach. With over 35 years of experience and $3 billion in completed transactions, we understand how to turn medical real estate into long-term financial gain.

The Most Common Mistakes Physician-Owners Make

One of the most common issues we see is poor timing. Many physicians wait until retirement is right around the corner before thinking about selling. By that point, leverage is often gone, and buyers know it. The earlier you plan—ideally five to ten years in advance—the better your outcome.

Another frequent mistake is underpricing rent. Low rent may feel like a benefit while operating, but it actually lowers the property’s market value. Buyers use rent figures to assess return potential, so undervaluing rent can reduce your sale price significantly.

Some doctors also assume that holding onto the property long-term always leads to better returns. But the reality is, most medical real estate provides a 2–3% annual return, while proceeds from a sale-leaseback can often be reinvested in ways that earn far more.

Finally, we often see physician-sellers work with general real estate brokers. While well-meaning, these brokers rarely understand the unique dynamics of ASC properties or the needs of physician-owners. Medical real estate is a specialized field. To get the best outcome, it helps to work with an advisor who knows the space inside and out.

What Investors Actually Want in Medical Real Estate

Investors buying medical office buildings and ASC properties are not just buying the physical space—they’re buying income. They want long, stable lease terms—usually 7 to 10 years or more. They also look for predictable income and clear operational control by experienced physician-owners.

We structure our clients’ leases to align with these expectations. That often includes setting rent at fair market value, creating long-term lease commitments, and including terms that promote confidence in operational consistency.

The Cost of Waiting: Missed Opportunities

Postponing the sale of your medical real estate can have real financial consequences. As lease terms shorten and retirement approaches, buyers see more risk. That translates into lower offers and fewer interested buyers. Some doctors lose millions in potential value simply because they waited too long.

We’ve worked with clients who thought they were too early to sell, only to find that the timing was perfect. By positioning the property correctly and leveraging a long lease term, we’ve helped them attract multiple offers and secure favorable pricing—well before retirement.

In contrast, we’ve also seen cases where waiting led to difficult negotiations and lower sale prices. Once leverage is lost, there are fewer tools available to improve value. That’s why timing and planning are so critical.

How ASC Realty Advisors Helps You Maximize Medical Real Estate Value

ASC Realty Advisors going over paperwork with a clientAt ASC Realty Advisors, we don’t just list your property—we design a strategy. Our team evaluates your current lease structure and identifies ways to improve investor appeal. This may involve adjusting rent, extending the lease, or renegotiating key terms.

We also tap into our national network of qualified investors. These buyers are actively seeking ASC and medical office properties, and we create a competitive bidding environment to drive up value.

While doing this, we always protect your operational needs. We know that physicians still need control over their practice, so we structure lease terms to preserve that flexibility. You keep control of your day-to-day operations while gaining access to capital through the sale.

Finally, we build your sale strategy around your goals and timeline. Whether you’re five years from retirement or just starting to plan, we tailor the process to fit your needs.

Take Control of the Process—Don’t Let the Market Decide for You

Selling your medical real estate is one of the most important financial moves you’ll make. But if you wait until the market forces your hand, you may not like the results.

As exclusive sell-side advisors, we only work for physicians. That means we advocate for your interests—not the buyer’s. Our process is based on direct guidance, clear communication, and personal service. You work with experienced professionals who understand your goals and stay involved from start to finish.

The earlier you start, the more options you’ll have—and the better the results.

Talk to a Trusted Medical Real Estate Partner

With hundreds of completed transactions and decades of focused experience, ASC Realty Advisors has helped physician-owners across the country turn their real estate into real financial returns. We don’t charge any upfront fees. Our compensation is based on your success, so we’re aligned every step of the way.

If you’ve been thinking about the future of your ASC or medical property, now is a good time to talk. Reach out for a free, confidential consultation. We’ll help you evaluate your current position and explore strategies to increase value and meet your long-term goals.