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Medical Office Real Estate

Medical office real estate offers consistent, recession-resistant returns for long-term investors. Breakwater Exchange brings clarity and structure to this essential asset class.

Medical Office Real Estate Investment Recommendations

At Breakwater Exchange, we view medical office buildings (MOBs) as one of the most resilient commercial real estate sectors. From specialty clinics to full-service health centers, MOBs provide the physical infrastructure for essential care that cannot be outsourced or paused. These properties are tied to long-term leases, high-credit tenants, and steady patient traffic. Understanding the distinctions between each class helps investors align with the right opportunity:

Class A Medical Office

These are new or recently developed buildings of the highest quality, located adjacent to major hospitals. Typically managed by healthcare REITs, they attract institutional tenants and offer long-term lease stability.

Class B Medical Office

These well-maintained mid-rise buildings are often located near hospital campuses and owned by physicians or private investors. Class B MOBs offer flexibility and reliable tenant occupancy at more accessible investment levels.

Stand-Alone Medical Office

Custom-built for single or group practices, these properties are often owner-occupied or closely managed. Stand-alone MOBs allow for specialized tenant use and long-term relationship-driven leasing strategies.

Discuss Medical Office Investment Strategies With Breakwater Exchange

Get in touch with our team today for an analysis or portfolio review. We’ll provide 1031 exchanges or tax strategies tailored to your healthcare-focused property goals.

Reasons Medical Offices Strengthen Portfolios

Medical office real estate offers a unique blend of durability, demand, and diversification. Here are three key reasons why Breakwater Exchange recommends this asset class to our investors.

Resilient Tenant Demand

The healthcare industry is recession-resistant. Patients need care regardless of the economy. Breakwater Exchange helps investors find stable MOBs in high-demand areas to ensure long-term occupancy and consistent income.

Tenant Diversity

MOBs can house urgent care centers, dentists, labs, outpatient services, and more, reducing vacancy risk. We help match investors with properties offering diversified, income-reliable tenant mixes that support one another within the same facility.

Reliable Long-Term Growth

America’s aging population is driving demand for outpatient healthcare services. Breakwater Exchange identifies markets where population trends, healthcare needs, and property performance align.

FAQs About Medical Office Real Estate Investing

Are medical offices eligible for a 1031 exchange?

Yes. Breakwater Exchange regularly helps investors exchange into MOBs using traditional DSTs, direct title solutions, or cash out DSTs, each structured for IRS compliance and income preservation.

How long are typical leases for medical tenants?

Many leases range from 7 to 15 years due to customized build-outs. Breakwater Exchange sources properties with long-term agreements and stable tenant profiles to match your risk tolerance.

Can I diversify my exchange into multiple MOBs?

Absolutely. Through Breakwater Exchange’s sponsor network and platform, we can structure diversified portfolios of MOBs within a single exchange, tailored to geography, specialty, or lease structure.

DST marketplace · Preview

See what a DST replacement property looks like

Three of twelve sample structures: asset class, leverage, minimum and hold. The sponsor, the distributions paid and the offering size are what marketplace access adds, after a short suitability call. Request access and the current list follows.

Self Storage Portfolio

Florida and Georgia · Southeast

Climate-controlled storage facilities in high-growth suburbs, with month-to-month leases that reprice quickly.

Minimum
$50,000
Leverage
Moderate leverage40 to 55% loan-to-value
Target hold
5 to 7 years
Strategy
Current income, Growth
Sponsor
Distributions
Offering size

Shown with marketplace access

Sample offering: a hypothetical illustration of this structure type, not an actual or current offering.

Senior Living Community

Suburban Pennsylvania · Northeast

A purpose-built community run by a national operator under a management agreement, not a lease.

Minimum
$100,000
Leverage
Moderate leverage40 to 55% loan-to-value
Target hold
5 to 7 years
Strategy
Current income, Growth
Sponsor
Distributions
Offering size

Shown with marketplace access

Sample offering: a hypothetical illustration of this structure type, not an actual or current offering.

Coastal Mid-Rise Apartments

Pacific Northwest · West

A newer mid-rise community in a supply-constrained coastal market, carrying more leverage for sellers with large loans to replace.

Minimum
$50,000
Leverage
Higher leverage55 to 65% loan-to-value
Target hold
5 to 7 years
Strategy
Growth, Debt replacement
Sponsor
Distributions
Offering size

Shown with marketplace access

Sample offering: a hypothetical illustration of this structure type, not an actual or current offering.

Sample offerings: hypothetical illustrations of structure types, not actual or current offerings. Photos are representative of each asset class. Current offerings are private placements for accredited investors, described by private placement memorandum.

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Breakwater Exchange’s expert guidance helps you maximize returns while minimizing tax exposure, so you can invest with clarity and confidence.

years of experience
20+
in DST transactions
$1B+
states licensed
50
vetted national sponsors
8

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