Sell Your Medical Office with the Practice in Florida
Physician-owned real estate sits at the intersection of two strong markets: medical office is the most institutionally bid office type in Florida, and practice consolidation by hospital systems and private equity keeps generating real estate decisions. Whether you are retiring, joining a system, or monetizing while you keep practicing, the building is often worth more than its owner assumes.
To sell a medical office in Florida, know that medical real estate carries the deepest buyer demand of any office type: investors prize the specialized buildout and the reliability of healthcare tenants. Physician-owners have three exits: sell the building with the practice as a package, sell to an investor with a leaseback and keep practicing, or sell vacant to another provider. Buildings with imaging, surgical, or exam buildouts command premium per-square-foot pricing.
How buyers underwrite the business and the building.
Medical buildouts are expensive to replicate, and buyers pay for that. Exam rooms with plumbing, imaging shielding, surgical suites, generator capacity, and ADA-compliant patient flow can cost hundreds of dollars per square foot to build new, which is why functioning medical buildings trade at a premium to generic office. The buyer pool spans medical-office investors, other practices, and health systems acquiring locations.
The sale-leaseback deserves particular attention from practicing physicians. Selling the building to an investor while signing a 10-to-15-year lease converts illiquid equity into capital at today's values, keeps the practice in place, and (because investors price the lease you sign) lets you effectively set the terms you will occupy under. It also cleanly separates the real estate from a future practice sale, which practice acquirers generally prefer anyway.
When the practice itself is also being sold, sequencing matters. Practice buyers (hospital systems, PE-backed groups) usually want the operations, not the building, so the real estate becomes either a leaseback to the acquired practice, which investors underwrite eagerly, or a separate sale. Coordinating the practice transaction and the real estate exit so each strengthens the other is exactly the packaged work we do.
Typical shape: medical office in South Florida generally trades at premium per-square-foot pricing versus comparable professional office, and leased medical buildings at tighter cap rates than generic office product. Sale-leasebacks are priced off the lease the physician signs. Typical patterns, not promises; buildout, location, and lease structure decide the specific number.
One transaction. Both halves valued.
Our business brokerage practice values the going concern and the real estate separately, then packages them into one confidential process. Start with the inquiry form and nothing leaves the room.
Frequently asked
What makes medical office worth more than regular office?
The buildout and the tenancy. Plumbed exam rooms, imaging infrastructure, and surgical capability cost far more to construct than generic office space, and healthcare tenants historically renew at high rates because relocating a practice is disruptive and expensive. Investors price both realities into tighter cap rates and higher per-square-foot values.
I am selling my practice to a hospital system. What happens to my building?
Usually one of two paths: the system leases your building (turning it into an investment-grade-tenant leaseback you can sell to investors at strong pricing) or the practice relocates and you sell to another provider. Coordinating the real estate strategy alongside the practice negotiation, before terms are final, protects meaningful value.
How does a medical sale-leaseback work?
You sell the building to an investor and simultaneously sign a long-term lease, typically 10 to 15 years with escalations. You receive the equity in cash, keep practicing in the same location, and the rent you agreed to is what determines the sale price. We structure the lease terms to balance your occupancy cost against the building value.
Will patients or staff learn the building is for sale?
Every engagement runs under NDA. Buyers see a blind teaser first (business type, region, revenue range) and receive financials only after signing and being vetted. Employees, customers, suppliers, and competitors do not learn the business is for sale until you decide, typically at closing.
Can I do a 1031 exchange with the proceeds?
Yes, and many retiring physicians do exactly that: sell the practice building and exchange into passive NNN property, deferring the gain while replacing management-intensive ownership with mailbox income. The 45-day identification calendar needs planning before closing; we coordinate it with your CPA and intermediary.
Get both halves valued, confidentially.
The real estate valuation is free and takes one business day. The going-concern valuation starts with a confidential conversation. Neither obligates you to anything, and nobody hears about either.