In a rapidly evolving real estate landscape, few sectors have shown the resilience and growth potential of medical office buildings (MOBs). Bob Waun, founder of DIRT Realty, recognized this potential early on. In 2022, he co-founded Physician Property Partners (PPP) to help medical professionals transition from sole ownership of medical buildings to partnerships in a professionally managed portfolio.
By offering doctors the chance to maintain an ownership stake in their real estate without the burdens of day-to-day management, Waun has created a model that promises steady, passive income and portfolio diversification at a scale that was previously unavailable to most physicians.
Moving from Single Property Owners to Portfolio Partners
The driving concept behind Physician Property Partners is straightforward: enable doctors to exit the often onerous task of managing individual properties while retaining the benefits of real estate ownership. Traditionally, many physicians have opted to purchase medical office buildings (MOBs) as part of their retirement or wealth-building strategies. However, the demands of maintaining and managing these properties—especially when paired with running a medical practice—can be overwhelming.
Physician Property Partners offers a solution. Through a sale-leaseback model, doctors sell their properties to PPP and reinvest as limited partners (LPs) in a diversified portfolio of medical real estate assets. This allows doctors to focus on medicine, while still benefiting from real estate returns, without the daily management burden. With a minority LP stake, they not only benefit from passive income yields but also gain the efficiency of large-scale management. This creates operational savings and improved financial performance for all partners.
Targeted Growth in High-Performance Markets
Waun and his team at PPP are strategically acquiring MOBs in high-growth markets where demand for medical services is on the rise. As healthcare continues to expand and shift toward outpatient services, the need for modern, strategically located medical office space has never been greater. Medical office real estate is emerging as one of the safest investments in commercial real estate, particularly in regions with strong population growth and aging demographics.
"The core of our strategy is building long-term partnerships with physicians, providing them with a safe investment that aligns with their values, while also creating efficiencies through scale," said Waun. "By acquiring key MOB assets in targeted high-growth markets, we're able to deliver solid, risk-adjusted returns for our partners."
The Resilience of Medical Office Demand
Unlike traditional office real estate, which has struggled to regain footing in the post-COVID landscape, medical office properties have remained resilient. In fact, demand for MOBs is stronger than ever. While work-from-home trends and hybrid office models have raised questions about the future of conventional office space, the essential nature of healthcare services means that medical office buildings are in a unique position. Telemedicine has grown, but the need for physical medical infrastructure, especially for specialized care and procedures, remains critical.
According to industry reports, medical office occupancy rates continue to outperform traditional office spaces, with vacancy rates consistently lower, averaging around 7% compared to nearly 18% in the traditional office sector. The healthcare industry is further bolstered by an aging population, particularly in the U.S., where the demand for healthcare services is set to increase dramatically over the next decade. This, coupled with the shift from hospital-based care to outpatient facilities, makes medical office space an attractive and durable investment.
The Value of Diversification and Scale
For physicians, the benefits of exiting sole property ownership in favor of minority LP stakes in larger, diversified portfolios are clear. Diversification reduces risk, and the scale of PPP's management allows for operational efficiencies that individual owners could never achieve on their own. Doctors maintain a voice in the management of the properties their practices operate in but are relieved of the time-consuming aspects of ownership like maintenance, tenant relations, and long-term capital planning.
Moreover, this approach to real estate investment offers physicians something increasingly valuable: time. Time to focus on their medical practices, time to devote to patient care, and time freed from the administrative burdens of property management. In exchange, they receive stable returns from a diverse, professionally managed portfolio—allowing them to benefit from property ownership without the stress.
Physician Property Partners: A Vision for the Future
Bob Waun's vision is to create a platform where physicians can achieve financial security through real estate without compromising their medical careers. Physician Property Partners has already made significant strides in this direction, rapidly acquiring key assets in growing markets and attracting physicians who see the value in the model.
For doctors who once carried the weight of individual property management, the partnership with PPP offers a way to diversify, generate passive income, and align their real estate investments with a future built on scalability and stability. The future of medical real estate is bright, and under Waun’s leadership, Physician Property Partners www.physicianpropertypartners.com is positioned at the forefront of this transformational shift.
In an era where the challenges of commercial real estate are mounting, medical office buildings remain a safe harbor—and PPP is ensuring that doctors, too, can share in the rewards of this dynamic and growing market.
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