Real Estate Strategies for Doctors
Rethinking Real Estate: How Doctors Can Turn Their Office into a Strategic Asset
You built a practice. Now it’s time to build on it.
For many doctors, real estate is an afterthought — something you lease year after year, tucked into the overhead line of your P&L. But what if the building you work in could do more than just house your practice? What if it could help you fund your growth or next chapter?
That’s the power of strategic real estate planning — not flipping buildings or chasing cap rates, but using your office space to unlock liquidity, control your future, and increase long-term net worth. And if you’re still leasing your medical suite? This might be the moment to ask why. Let’s break it down.
Real Estate Is Often a Doctor’s Most Undervalued Asset
The majority of outpatient practices lease their space. It’s simple, familiar, and flexible — until it’s not. Rents go up. Landlords sell. Or worse, your landlord is your competition — a hospital system that bought the building next door and wants to control referrals and volume. If you’re a high-producing practice — think primary care, internal medicine, imaging, dermatology, concierge — then your location is not just an address. It could also be a revenue engine.
Three Strategic Paths: Own, Monetize, or Exit
Let’s create a framework to examine a few ways that medical office space may be acquired. Most doctors have three options when it comes to real estate:
1. Buy with SBA 504 Loans
If you’re leasing space and expect to be there 7–10 years or more, consider owning it. The SBA 504 loan program is tailor-made for medical real estate — as little as 10% down, 25-year fixed rates, and major tax advantages.
This lets you:
Lock in monthly costs, mitigating exposure to rent escalation
Build equity passively, as your own rent becomes your mortgage paydown
Create long-term wealth while maintaining full control
As a hypothetical scenario to illustrate this strategy, Dr. Anna, a gastroenterologist in Pensacola, used a 504 SBA loan to acquire her building and her monthly payments are now contributing to equity value rather than simply rent. With this strategy in 15 years, she’ll own a $1.2M asset with no external equity partners needed.
2. Create Liquidity via Sale-Leaseback
If you already own your building but need cash — for an expansion, to invest, or to reduce personal risk — you may be able to sell the building and lease it back. This unlocks capital without moving your practice.
Here’s why it matters:
You get a lump sum payout (think: $1–3M) while keeping day-to-day control
Lease terms are pre-agreed so your operations don’t skip a beat
Real estate investors love doctors — you’re reliable, stable tenants
As a hypothetical scenario to illustrate this strategy, Dr. Foster, an immunologist in Chicago, needed access to capital to purchase a rival practice to expand her client base. So she used the equity in her building to acquire the practice without having to bring on investors or take on debt.
3. Structure Real Estate as Part of Your Exit Plan
Planning to retire or transition in 3–7 years? Real estate can sweeten the deal.
Options include:
Selling the practice and leasing the building (you become the landlord)
Selling both to a buyer who wants a turnkey asset
Keeping the real estate and earning passive income post-exit
Owning the building can increase the valuation of the entire package, making it more attractive to other physicians or groups.
Why This Matters Now
Healthcare real estate is in demand — even in a choppy economy. Private buyers, real estate funds, and even family offices want medical tenants. Why? Because:
Medical practices are low-risk tenants
Patient traffic is consistent
Healthcare isn’t going out of style
If you don’t own your space, someone else is likely profiting off your success. If you do own it, you may be sitting on one of your most powerful tools for reinvestment, retirement, or reduction of personal financial pressure.
The Doctor’s Real Estate Strategy Checklist
Whether you’re solo or in a group, here’s what to evaluate:
Are we currently leasing? What are the annual rent increases?
What would it cost to purchase our current or similar location?
Do we need capital for growth — and are we asset-rich but cash-tight?
Could we benefit from a real estate exit or passive income stream?
This isn’t a decision to make in a vacuum — it’s part of your broader strategy. But too many physicians leave millions on the table by treating real estate as overhead instead of leverage.
Final Thought: Real Estate Is Not Just a Building. It’s a Strategy.
Whether you're 35 and expanding or 60 and preparing for a graceful exit, your real estate choices can either support your clinical goals — or slow you down. Own where it makes sense. Monetize when it creates freedom. And structure with the future in mind. Because medicine is personal. Your office space should be, too.
