How to Value a Medical Office Lease or Purchase

When physicians start looking at medical office space, one of the first questions I hear is simple: is this a fair deal? Whether you are leasing, buying, or considering the sale of a property, the right value depends on more than just the asking price or monthly payment. You need to look at location, square footage, operating expenses, build-out costs, lease terms, and how the property supports your long-term goals.

Evaluating a Lease

If you are leasing, value comes down to whether the rent is in line with the market and whether the lease protects your practice. A low monthly rate can still be a poor deal if the annual increases are steep, the expense pass-throughs are high, or the terms box you in later.

Evaluating a Purchase or Sale

If you are buying or selling, the question becomes whether the property is priced in a way that reflects current market conditions and the unique value of the medical use.

The Hidden Cost of a Bad Decision

I also tell clients to think about the hidden cost of a bad decision. A space that looks affordable today may become expensive if it does not support patient access, staffing, equipment, or future expansion. On the seller side, understanding what buyers value most can make a major difference in how your property is positioned and marketed.

If you are a physician looking to lease or buy, or a property owner thinking about selling a medical office, I can help you evaluate the opportunity from every angle. Reach out to me, Jon O'Shea, Commercial Real Estate Advisor with KW Commercial, at 267-780-3419.