Healthcare Real Estate Laws Can Be Tricky, Texas Real Estate Business


The current economic climate has resulted in a flight to safety for many real estate investors. Since healthcare real estate is generally considered a safe investment because of the stability of the tenant base and the demand for the product, many real estate investors have turned to medical office buildings as a desired asset class.

Prior to engaging in development, investment or leasing transactions involving medical office buildings, real estate professionals must understand how healthcare real estate differs from other asset classes. For example, medical office buildings will be subject to different design and construction standards than general office buildings due to the unique nature of the use. In addition, if the medical office building is located on a hospital campus, the hospital will likely exercise certain controls over the leasing of the building and use of the space.
A minefield of laws and regulations exist surrounding medical office building transactions, which often require the analysis of the applicability of federal fraud and abuse laws, which can carry severe penalties. Any economic benefit received in a transaction between parties who may have a potential referral relationship can trigger applicability of these laws.

To be successful in the healthcare real estate market, developers and owners will need to understand the practical considerations and legal and regulatory environment surrounding this product. In all cases, parties desiring to enter into the medical office market should enlist the assistance of architects, contractors, attorneys and other real estate professionals who are knowledgeable and experienced in the healthcare industry.

Originally printed in Texas Real Estate Business, March 2010

T. Andrew Dow  I  214.745.5387  I

Media Contact

Michael Webb
Public Relations Manager

Media Kit

Search Tips:

You may use the wildcard symbol (*) as a root expander.  A search for "anti*" will find not only "anti", but also "anti-trust", "antique", etc.

Entering two terms together in a search field will behave as though an "OR" is being used.  For example, entering "Antique Motorcars" as a Client Name search will find results with either word in the Client Name.


AND and OR may be used in a search.  Note: they must be capitalized, e.g., "Project AND Finance." 

The + and - sign operators may be used.  The + sign indicates that the term immediately following is required, while the - sign indicates to omit results that contain that term. E.g., "+real -estate" says results must have "real" but not "estate".

To perform an exact phrase search, surround your search phrase with quotation marks.  For example, "Project Finance".

Searches are not case sensitive.

back to top