We are often contacted by physicians who own ASC and/or MOB real estate with a request for a valuation of their medical real estate in anticipation of a sale because they are approaching retirement.
The Big Mistake these physicians make is that they have waited too long to get maximum value for their medical real estate. Maximum value is obtained when the owner can sign at least a 10-year lease.
The reasons for this are:
The value of commercial property is largely based on the length of the lease. A lease term shorter than 10-years will not bring maximum value.
Buyers want assurance that rent will be paid and there is no guarantee of rent being paid if the real estate owner is about to retire.
A 10-year or longer lease will attract multiple interested buyers giving us the opportunity to negotiate the highest price and best terms for the seller.
If you own medical real estate don’t sabotage your own best interests by waiting until you are about to retire to sell your medical real estate – you will maximize the value of your property by selling at least 10 years before you plan to retire.
Physicians can obtain more information about sales of ASC and MOB real estate by contacting Jon Vick or JH Winokur Inc.