In the healthcare real estate sector, professional appraisers with the necessary experience and knowledge are crucial in delivering consistent and dependable valuation of properties. Healthcare-related properties have unique characteristics, such as operations, lease structures, and market trends that require a deep understanding of the healthcare industry. Sophistication in healthcare real estate requires expertise in multiple key areas so that appraisers can accurately determine the value of healthcare-related properties and property types. Below are four areas of expertise that healthcare-specialized appraisers can offer.
1. Healthcare Operations
An appraiser must understand healthcare operations. Healthcare facilities are used for a wide range of purposes, from emergency services in hospitals to specialty treatments in outpatient facilities and surgery centers. The appraiser must be able to comprehend how these buildings operate, how they are funded, and how the specific medical services rendered impact the value of the property. For instance, the structure and layout of a medical office building (MOB) or an ambulatory surgical center (ASC) can directly affect the efficiency of healthcare provision and, by extension, the property’s value.
2. Complex Lease Structures
Healthcare-specific lease structures can also complicate appraisals. Unlike standard commercial leases, healthcare leases typically involve specific conditions on long-term contracts, rent escalations, and tenant responsibilities. A healthcare facility rented by a hospital system or a dialysis clinic, for example, may involve financial structures different from typical office space leases. Timeshares in healthcare are common and can be tricky to navigate without an expert who has dealt with many different timeshare leasing scenarios—from multiple physicians sharing a 2,000-square-foot suite to multiple physicians sharing a 100-square-foot exam room. Healthcare-experienced appraisers can evaluate such leases accurately and quantify the financial strength and risks of such leases.
3. Healthcare Market Trends & Demographics
The healthcare sector keeps changing with evolving patient care patterns and growing demand for outpatient services, senior living, and psychiatric facilities. Appraisers must understand local demographics and healthcare demand, such as aging populations driving long-term care needs or rising mental health awareness increasing demand for behavioral health centers. This awareness allows healthcare-specialized appraisers to estimate how these market trends will affect the current stability and long-term value of healthcare properties.
4. Healthcare Property Types
Lastly, the diversity of healthcare property types itself requires specialized appraisers. Medical properties come in all shapes and sizes, including hospitals, outpatient facilities, cancer centers, long-term acute care hospitals, inpatient rehabilitation facilities, assisted living facilities, skilled nursing facilities, and medical office buildings with specialized build outs, and more. Each type of property possesses a particular design and functional need, making them all drastically different from a general commercial property. For example, facilities such as cancer centers—which may include radiation therapy rooms—require an appraiser to have extensive knowledge of the specific build-outs, costs to construct, requirements, and constraints involved.
The VMG Health Advantage
At VMG Health, we have credentialed appraisers who specialize in healthcare real estate, each bringing years of experience in the field. Our team includes professionals who hold designations from leading industry organizations, including MAI (Member of the Appraisal Institute), MRICS (Member of the Royal Institution of Chartered Surveyors), and ASA (Accredited Senior Appraiser), ensuring the highest standards of valuation expertise. Our team members are state-licensed to perform work on a national level.
Additionally, we have several trainee appraisers who are guided by experienced supervisors to ensure comprehensive and accurate healthcare property appraisals. This depth of knowledge and experience allows us to provide well-supported valuations that meet the complex demands of the healthcare real estate market.Accurate healthcare real estate valuations require the knowledge and expertise of healthcare-specific appraisers, who understand healthcare operations, the regulatory climate, leasing types, market forces, and the complexities of each healthcare property type. Partner with VMG Health to receive reliable, healthcare-specific real estate valuations backed by deep industry expertise and an understanding of the sector’s unique demands.
