Why Healthcare Tenants Value Speed to Market—And What That Means for Real Estate Strategy
- Shane Lovelady
- Apr 3
- 2 min read
If there’s one phrase we keep hearing from healthcare providers, it’s this: “We need to move fast.”
Speed to market used to be a nice-to-have. Now it’s often the deciding factor in whether a healthcare deal moves forward or not. This shift is being driven by a few things—growing patient demand, competitive urgency, and tighter reimbursement cycles. But at its core, it all comes back to one thing: timing affects profitability.
Operators aren’t just looking for space anymore—they’re looking for solutions. And when it comes to healthcare real estate, the faster a facility can open its doors, the faster it can generate revenue, serve patients, and fulfill its contracts.
That urgency is especially clear in behavioral health, urgent care, and outpatient surgery centers. Many of these groups are expanding rapidly, often backed by private equity, and they don’t have time to wait around for protracted permitting timelines or complicated tenant buildouts.
So what does that mean if you’re an owner, investor, or broker? It means properties with existing healthcare infrastructure—like plumbing for exam rooms, med gas lines, or previous licensing—are gold. If a space allows a provider to skip six months of planning and permitting, it becomes significantly more valuable.
Converted retail is another big trend. Former big-box stores, grocery stores, and even banks are being repositioned into multi-specialty healthcare hubs. Why? Because the zoning’s usually easier, the parking’s already there, and you can get them operational faster than a ground-up build.
From a valuation standpoint, speed to market has become a real lever. Tenants are willing to pay a premium if they can start operating sooner. Lenders are more comfortable with stabilized tenants in facilities that can generate cash quickly. Even buyers are starting to factor “time-to-cash-flow” into what they’re willing to offer.
We’ve had deals where the layout wasn’t perfect and the rent wasn’t the cheapest—but the tenant chose it because they could move in and start seeing patients in under 90 days. That tells you everything.
So if you’re holding a property that’s healthcare-ready, or you’re thinking about retrofitting a space for medical use, now’s the time. The market is hungry for speed, and if your asset delivers that, you’ve got a serious edge.
📅 Book a call if you’re evaluating a healthcare facility, working on a lease deal, or just want to talk strategy.
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