What Is My Medical Office Building Worth?

If you own a medical office building and want to know what it is worth today, a broker opinion of value (BOV) gives you a professional, market-based answer without the cost or timeline of a formal appraisal. A BOV for a medical office building is prepared by a licensed commercial real estate broker using current comparable sales, tenant credit quality, lease structure, and the cap rates buyers are applying to healthcare real estate in your market today, and typically delivers in 2 to 3 business days.

For owners considering a sale, a BOV is typically provided at no charge as part of the broker relationship. For estate planning, partnership buyouts, property tax appeals, or other non-sale purposes, a modest fee may apply. You will always be told the cost before any work begins.

How a Medical Office Building Gets Valued

Medical office buildings are valued using the same income and sales comparison approaches applied to conventional office, but with critical differences that make specialist knowledge essential. Healthcare real estate trades at a premium to general office because medical tenants have high renewal rates, are deeply embedded in their locations due to equipment, infrastructure, and patient relationships, and represent recession-resistant demand tied to demographics rather than economic cycles. A broker without medical real estate experience will apply conventional office comparable data that systematically understates your building’s value.

The key factors a broker evaluates for a medical office building include:

• Tenant type: hospital system, large physician group, single-specialty practice, or multi-specialty clinic
• Hospital proximity: on-campus, adjacent, or off-campus, and the value premium each commands
• Lease structure: NNN, modified gross, or gross, and remaining lease term across the tenant roster
• Building infrastructure: specialized plumbing, electrical capacity, HVAC zoning, and medical gas systems that add replacement cost and tenant stickiness
• Occupancy rate and the weighted average lease term
• Tenant renewal history and the renewal probability for expiring leases
• Current rents relative to market rents and the mark-to-market potential at renewal
• Building age, condition, and any recent capital improvements supporting current medical use standards

A BOV from a broker with active medical office transaction experience will correctly apply healthcare real estate cap rates rather than conventional office cap rates, which can represent a difference of 100 to 200 basis points and a corresponding 15% to 30% difference in estimated value.

When Medical Office Owners Request a BOV

Most requests come from owners in one of these situations, and understanding which one applies determines what the BOV needs to document and what comes next.

• Physician or practice group considering a sale or sale leaseback of the building they occupy
• Investor owner preparing to sell a tenanted medical office building
• Estate planning or probate requiring documented current market value of a healthcare real estate asset
• Property tax appeal challenging an assessed value that does not reflect current medical office market conditions
• Partnership dispute or buyout involving a medical building co-owned by physician partners
• Refinancing a maturing loan with a new lender requiring current value documentation
• Evaluating whether to sell now into a favorable cap rate environment or hold through a lease renewal

A BOV is not a certified appraisal and is not suitable for SBA lending, institutional financing, or legal proceedings requiring USPAP compliance. For those situations, a certified MAI appraisal is required. A knowledgeable broker will tell you which document you actually need before you spend time or money on the wrong one.

BOV vs. Certified Appraisal for Medical Office Property

Here is how the two valuation tools compare for a medical office building owner:

	Broker Opinion of Value	Certified Appraisal
Prepared by	Licensed CRE broker	Certified MAI appraiser
Turnaround	2 to 3 business days	2 to 4 weeks
Cost	Lower, often free for sale prep	$3,000 to $10,000+
Accepted for	Sale prep, estate, tax appeal, partnership buyout	Lending, IRS, court
USPAP compliant	No	Yes

For most medical office owners evaluating a sale, handling an estate, appealing a property tax assessment, or planning a sale leaseback, a BOV is the faster and more practical starting point. A certified appraisal becomes necessary when a lender, the IRS, or a court requires USPAP-compliant documentation.

The Medical Office Market Right Now

Medical office has emerged as the most defensive asset class in U.S. commercial real estate heading into the second half of 2026. According to Cushman and Wakefield, medical outpatient building investment volume totaled over $14 billion in 2025, up 34% year-over-year, with portfolio activity accelerating as sellers and buyers closed on nearly $7 billion in portfolio deals. JLL reports that MOB total returns have remained positive over the past decade at 6%, outperforming the broader NCREIF index at 4.9%. MOB construction completions are projected to fall approximately 26% in 2026 to a decade low, tightening supply precisely as demographic demand accelerates. The U.S. population aged 75 and older is growing by more than one million people per year, roughly triple the rate of the past 40 years.

Cap rates in Q1 2026 reflect the sector’s defensive characteristics. According to CREG Healthcare, medical office building cap rates range from 5.5% to 8.5% depending on property quality, tenant profile, and lease terms. Hospital system tenants on long-term NNN leases trade at 6.0% to 6.5% in primary markets. Large physician groups with 10-plus year histories trade at 6.5% to 7.2%. Single-specialty or small practices trade at 7.0% to 7.8% or wider due to tenant concentration risk. The average MOB single-asset cap rate stood at approximately 7.2% in mid-2025, compressing as portfolio transactions returned and institutional capital re-entered the sector. National MOB occupancy holds at approximately 92.7% according to JLL, a record high, with average asking rents reaching $24.86 per square foot nationally.

The divergence between medical office and traditional office has never been wider. While conventional office vacancies exceed 18% in many major markets, medical office vacancy is holding near 9.5% nationally and trending down as supply deliveries slow. Healthcare tenants renew at rates approaching 90% for expiring leases, demonstrating the fundamental stickiness that drives investor demand. For medical office owners, current market conditions represent one of the most favorable environments to transact in more than a decade. A current BOV anchored in 2026 transaction data tells you exactly where your building sits in this active market.

What to Expect When You Request a BOV for Your Medical Office Building

The process is straightforward. After you submit your property details, a licensed broker with active medical office deal flow will review your request and follow up to confirm the information needed and discuss your situation.

To prepare a BOV for a medical office building, the broker will typically need:

• Property address, total rentable square footage, and building age
• Tenant roster showing all tenants, their specialty or practice type, and lease expiration dates
• Lease abstracts or a rent roll showing current rents, lease type, and any renewal options
• Occupancy rate at time of request
• Annual operating expenses: taxes, insurance, management, and maintenance
• Hospital proximity and any affiliation or co-tenancy with a health system
• Any recent capital improvements or specialized infrastructure investments
• Current mortgage or debt if relevant to the transaction being considered

Most medical office BOVs are completed within 2 to 3 business days after property details are confirmed. For larger multi-tenant medical campuses or complex lease structures, additional time may apply.

Markets We Cover for Medical Office BOV

We provide broker opinions of value for medical office buildings in markets across the country. Don’t see your market listed? Submit your property details and a broker will follow up promptly regardless of location.

Request a BOV for Your Medical Office Building

Getting started is free for owners considering a sale. Submit your property details and a licensed medical office broker will review your request and follow up promptly.

Frequently Asked Questions

What is a broker opinion of value for a medical office building?

A broker opinion of value (BOV) for a medical office building is a written estimate of your property’s current market value prepared by a licensed commercial real estate broker with healthcare real estate experience. For medical office buildings, the BOV is based on tenant type and credit quality, hospital proximity, lease structure and remaining term, building infrastructure, comparable healthcare real estate sales, and the cap rates buyers are applying to similar medical office assets in your submarket today. It typically delivers in 2 to 3 business days.

Do I need a formal medical office building appraisal or will a broker price opinion work?

For most medical office owners evaluating a sale, handling an estate, planning a sale leaseback, or appealing a property tax assessment, a broker opinion of value is the faster and more practical starting point. A formal certified appraisal is required when a lender, the IRS, or a court requires USPAP-compliant documentation. A BOV typically delivers in 2 to 3 business days at a fraction of the cost of a certified appraisal. A knowledgeable broker will tell you which document you actually need before you commit time or money.

Why is medical office valued differently from traditional office?

Medical tenants are fundamentally stickier than conventional office tenants. A physician’s practice is embedded in its location through specialized plumbing, electrical, medical gas, and imaging infrastructure that costs hundreds of thousands of dollars to replicate. Patient relationships and referral networks are tied to address and proximity. As a result, medical office renewal rates approach 90% nationally, compared to 50% to 60% for conventional office. Investors price that stickiness with lower cap rates, meaning higher values per dollar of income. Medical office cap rates are typically 100 to 200 basis points tighter than comparable conventional office in the same market, translating to a 15% to 30% value premium.

How accurate is a broker price opinion for a medical office building?

A BOV from a broker with active medical office transaction experience is a reliable indicator of what your building would trade for in the current market. The key risk is using a conventional office broker who applies general office cap rates and comparables rather than healthcare-specific data. Always confirm the broker has recent medical office transaction experience in your submarket and understands the difference between hospital-affiliated, physician group, and single-practice tenancy in terms of investor demand and cap rate impact.

What information do I need to provide for a medical office BOV?

The most important details are the property address, total rentable square footage, tenant roster with practice types and lease expiration dates, current rents and lease types, occupancy rate, annual operating expenses, and hospital proximity. Any specialized infrastructure such as imaging rooms, surgical suites, or medical gas systems is relevant to the valuation. A broker will follow up to confirm any additional details needed for your specific building.