10 January 2022

Surgery valuations - Has the value of your premises increased?

Professional services

If you have not had your surgery valued recently, although rent reimbursements have not increased, it is highly likely that the value of the premises has increased.

With some exceptions, rent reimbursements have largely remained static or have had nominal uplifts applied, leaving Partnerships to assume there has been little change to the value of their property when the reality can be very different.


Demand for surgery premises has increased considerably, recently, and the NHS backed income stream provides a high level of security in a market surrounded by short- and medium-term uncertainty. Interest in medical investments had been steadily growing in the years prior to the pandemic and, with the onset of Covid-19 and subsequent lockdowns, this interest has been supercharged. In contrast to the highly publicised retail struggles and the future of the traditional office being called into question, surgeries provide a secure, essential service that will continue to be required regardless of the effects of Covid-19 and any future variants.


Carlie Edgerton of SHW says: "Rental income from other commercial properties may be paused due to a pandemic clause, arrears may build up for a financially struggling business, or it may be difficult to find a new tenant willing to commit themselves to a lease. It is in this context that rent reimbursement becomes highly desirable, giving medical premises their turn in the spotlight as demand outstrips supply.


"Therefore, whilst rent reimbursements might not have increased, medical yields are decreasing for both purpose-built and converted surgeries and it is this yield suppression that is increasing market values."


If you have any questions regarding your rent reimbursement or the value of your medical building, SHW's medical specialists would be delighted to discuss your current situation and provide tailored property advice. Contact Carlie Edgerton on 01273 876225 / cedgerton@shw.co.uk.