By the year 2055 the number of people aged 65 and older is expected to double in the United States. As the population ages, the availability of medical care will become an increasing concern in many communities.
One of the ways healthcare providers are addressing this trend, is by moving their practices from large hospitals to smaller, more accessible sites. Gone are the days of enormous corporate-owned medical multiplexes.
The future of healthcare facilities is small, local, and driven by individual investors.
Why Invest in Medical Office Buildings?
The increasing trend of healthcare providers moving away from large hospitals and into smaller medical office buildings (MOBs) hasn’t escaped the notice of real estate investors.
Medical real estate has shown consistent growth over the past five years, and it’s only expected to continue expanding going forward.
Historically, healthcare real estate investment trusts and hospital executives owned the bulk of medical real estate. But as our medical system changes, individual investors are entering the market and jumping at the opportunity for MOB ownership.
Why should commercial real estate investors consider adding medical office buildings to their portfolios?
According to real estate investment experts, medical real estate will remain a safe bet. Medical tenants tend to stay in one location for years and have excellent track records of being reliable occupants.
Moreover, say the experts, while there has been a boom in medical office building construction, the available inventory is not enough to satisfy the market. Demand still outpaces supply in many locations throughout the country.
How to Find a Medical Office for Sale
If you are looking for medical office buildings for sale, we can help you discover the perfect property for your portfolio.
Below, we will list some of the best places to search for on-market medical offices online. These platforms allow interested investors to look for available properties nationwide and filter results according to their specific needs. Some can even handle the entire real estate transaction online.
We will also show you how to save money and eliminate the competition by searching for off-market medical properties.
While we have only listed large online platforms that allow users to search for healthcare facilities across the country, you may also want to consider contacting local real estate brokerage firms which may have more information on available properties in their specific area of operation.
Medical Office Buildings for Sale Listings
With over five million monthly users, LoopNet is the online CRE marketplace leader. Investors can search through over 500,000 listings throughout the U.S.
LoopNet’s search function makes finding medical offices for sale anywhere in the country easy. Start by choosing “Health Care” from the drop-down menu and entering a location.
Once you hit “Search,” you will be presented with a list of all the available health care buildings for sale in the location you specified. If you are looking for a more specific type of facility, like hospitals or rehabilitation centers, you can narrow down your search results by clicking on the More Filters link and selecting only the sub-categories you are interested in.
You may also want to consider browsing through the listings under the “Office” category as some sellers or brokers may choose to list their medical property for sale under this category, in order to capture a larger audience.
Similar to LoopNet, CREXi allows investors to search for various types of CRE properties nationwide.
Unlike LoopNet however, CREXi can help interested buyers complete the entire real estate transaction online. Users can connect through the platform, negotiate deals, and message through the in-app communications tool.
To begin your search, choose “Medical Office” from the drop-down menu, type in a location, and click Search. The results will be shown on a detailed map, along with photos and descriptions of each property.
If you would like to narrow down the listings even further, choose the “More Filters” tab.
As with the other search engines mentioned here, Showcase can help investors find properties for sale in all asset classes. The website boasts over one million listings, including on-market medical office buildings.
Unlike CREXi and LoopNet, Showcase doesn’t offer a very advanced set of filters that would allow you to search specifically for medical office buildings for sale. Instead you will have to scroll through all office listings to find any healthcare facilities that meet your needs.
Nevertheless, the sheer volume of listings available on the platform makes the extra effort worth the time.
Ten-X is changing the way investors buy and sell commercial real estate – according to their website, the platform powers more than 90% of all online CRE sales in the United States.
Ten-X lets you look for properties for sale anywhere in the country, filter your search results by asset type, and make an offer all from your handheld device or computer.
Unlike other CRE platforms, Ten-X operates as an auction site. Interested investors can buy property in one of three ways:
- Offer Select – Buyers and sellers connect through the website and exchange the property just as they would in a traditional commercial real estate transaction.
- Live Bids – Investors use the auction function to bid on available properties.
- Managed Bids – A live bid process with added calls for offers during the preliminary marketing phase.
If your offer is accepted, Ten-X will handle the entire transaction securely. The best part is that you can do it all in the palm of your hand with the Ten-X mobile app.
CityFeet is essentially an intermediary online platform connecting owners, investors, and brokerage firms. You can search listings from over 200 partners and view the available results in one easy-to-use interface.
To find medical offices for sale in a specific area, choose “Medical” from the drop-down menu and enter the location of your choice. The results will include all available medical properties in that area.
You can further narrow down your search results by clicking on the “More” link and selecting one of the two sub-categories available under “Medical” in the Property Type sub-menu.
CityFeet is part of the CoStar real estate group, a network serving sellers, buyers, and brokers nationwide. CityFeet and CoStar give users access to over five million commercial real estate properties on the market today.
The Commercial Investment Multiple Listing Service (CIMLS) features $500 billion of commercial and industrial real estate listings and serves more than 320,000 registered users.
To search listings for sale on the platform, enter your desired state, city, or county, and then select the type of property. Choose either “Office” or “Health Care” in the drop-down menu to find medical office buildings for sale.
The website also allows users to compare multiple properties and to find a broker that can help them with their property search.
Find Medical Buildings Off Market With Reonomy
In addition to searching through on-market listings, you can also use a tool like Reonomy to discover medical properties that may be available for sale off market.
More and more deals take place off market as investors look for ways to avoid third-party intermediaries and competing buyers, while being able to communicate directly with existing property owners.
The Reonomy Platform lets you search for medical office buildings in more than 3,000 U.S. counties and filter the properties in a number of ways, such as pinpointing facilities that have not sold in a certain time frame.
Once you identify the properties you are interested in, you can pierce the LLCs behind those assets and get the contact information of the true owners, in order to reach out, make your pitch, and ultimately strike a deal.
No matter which search approach you choose, adding medical office buildings to your portfolio can be a solid investment strategy. As the healthcare needs in America continue to increase, we are only going to see stronger demand for medical real estate in cities and towns across the nation.