In the Atlanta metropolitan area, a growing number of physicians are strategically monetizing their real estate assets by selling the buildings that house their practices—often via sale-leaseback agreements. This trend reflects a nationwide shift but is particularly pronounced in Atlanta due to the region’s strong medical office market, investor demand, and evolving preferences among healthcare providers.
As of Q1 2025, the average rental rate for medical office buildings (MOBs) in Atlanta is around $26.24 per square foot, marking a 3.4% year-over-year increase. Meanwhile, vacancy rates have fallen to 9.6%, driven by rising demand for outpatient care, specialty services, and behavioral health facilities. Over 150,000 square feet of space was absorbed in the first quarter alone, marking the fifth consecutive quarter of positive net absorption. These figures underscore the health of the region’s healthcare real estate market and its attractiveness to investors.
Amid these favorable conditions, physician-owners are increasingly opting to sell their properties while continuing to operate in them, unlocking capital to reinvest in their practices or fund retirement plans. These sale-leaseback transactions provide immediate liquidity without disrupting business operations, making them an appealing strategy—especially for providers nearing retirement or looking to streamline their balance sheets.
Several notable sale-leaseback transactions have occurred across the Atlanta MSA in recent years. In December 2023, Montecito Medical Real Estate acquired five Thomas Eye Group properties across metro Atlanta in a $25 million deal, leasing the buildings back to the practice. In Lawrenceville, Alliance Consolidated Group purchased a clinic operated by Gwinnett Pediatric Partners in 2021 as part of a similar arrangement. More recently, in September 2023, Crown MedRealty Partners acquired a behavioral health facility in Covington from the Atlanta Autism Center, structured as a long-term leaseback. These deals highlight a cross-section of specialties—from ophthalmology to pediatrics to behavioral health—demonstrating that the strategy is being embraced by a wide range of practices.
There are several driving forces behind this movement. Succession planning is a major one. Many senior physicians are nearing retirement and find it more efficient to sell their real estate holdings rather than pass them on, particularly as younger doctors increasingly prefer employment over ownership. Nationally, the percentage of physicians under 45 who own their practices has dropped from 44.3% in 2012 to just 31.7% in 2022. That generational shift is evident in Atlanta as well, where hospital systems and corporate consolidators have taken a larger role.
In addition, private equity and institutional investors have identified medical real estate as a stable, recession-resistant asset class. Atlanta’s strong population growth, diversified economy, and well-established healthcare infrastructure make it a top target. Many investors are aggregating individual physician-owned assets into larger portfolios that can later be sold to REITs or national healthcare landlords.
For physicians in metro Atlanta, this trend offers a compelling opportunity. By converting a non-liquid asset into working capital or retirement funding—while maintaining control of their practice operations—doctors can align their real estate decisions with both personal and professional goals. The Atlanta MSA, with its robust market fundamentals and active buyer pool, remains one of the best-positioned regions for these types of deals.
There are hundreds of business points in the selection process and lease negotiation that can become more important than the rental rate. At Bull Realty, our healthcare and medical office tenant representatives work closely with you to navigate your business goals. Our deep market expertise enables us to provide strategic guidance while ensuring your short- and long-term objectives are met—helping you secure the right space for your practice’s success and growth. For more information, reach out to us at www.bullrealty.com
Phillip J. Kelly O.D.
V.P. Healthcare Real Estate
Email: Phillip@bullrealty.com
Direct: 404-876-1640 x159
Brice Burns
Commercial Real Estate Advisor
Email: Brice@bullrealty.com
Direct: 404-876-1640 x158
