Dialysis Net-Lease Properties and the Tenant Success Entanglement
As a result of the COVID-19 pandemic, the net lease medical office market has seen all-time highs in investor demand, transaction volume, and cap rate compression. In 2021, medical office transaction volumes topped $16 billion—the sector’s all-time highest. Previously, the medical office sector saw its best year in 2017 with $15.5 billion in transaction volume. With many retail tenants struggling to pay rent as a result of the pandemic, investors found a safe haven in medical office assets. The medical office sector established itself as an area in which investors could shield themselves from the three main concerns within the retail sector: the pandemic, a recession, and the Amazon Effect.