What is an owner-occupied medical office building?

An owner-occupied medical office building is a commercial property owned and occupied by a healthcare practice rather than leased from a landlord.

An owner-occupied medical office building is a commercial property where a healthcare practice owns and occupies a significant portion of the building instead of leasing space from a third-party landlord.

This ownership model allows physicians, dentists, and other healthcare professionals to build long-term equity while maintaining greater control over their facility. Owners also have the flexibility to customize their space, reduce long-term occupancy uncertainty, and potentially benefit from property appreciation over time.

Whether ownership is the right strategy depends on your financial goals, available capital, financing options, and long-term practice plans.

Related FAQ terms

Why work with a healthcare-focused commercial real estate advisor?
Healthcare real estate advisors understand medical facilities, patient needs, and industry-specific requirements that general brokers may overlook.
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Can I purchase a medical office building before my practice is fully established?
Yes. Many healthcare professionals purchase medical office buildings early, provided they meet financing requirements and have a strong business plan.
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What should I consider before purchasing a medical office building?
Consider location, accessibility, financing, building condition, parking, zoning, operating costs, + future growth before purchasing a medical office building.
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How long does it take to purchase a medical office building?
Most medical office building purchases take between 90 and 180 days, depending on financing, due diligence, negotiations, and closing.
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What financing options are available for medical office buildings?
Medical office buildings can be financed through conventional commercial loans, SBA loans, or specialized healthcare lending programs.
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Is it better to buy or lease a medical office building?
Buying and leasing each offer unique advantages depending on your practice’s goals and stage of growth.
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Do you represent landlords as well as tenants?
No. We work exclusively for tenants to avoid conflicts of interest and ensure objective advice.
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When should a tenant engage real estate advisory?
Ideally before touring spaces or discussing lease terms.
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When should we engage tenant representation?
Ideally, before you start touring spaces or talking with landlords.
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Is this brokerage or advisory?
Our work is advisory-first.
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Have more questions?

We’re happy to walk through your situation.
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What to expect:
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  • Tenant & owner occupied representation
  • Healthcare & service-focused
  • Chicago & suburban markets