How Veterinary Real Estate is Quietly Becoming the Next Defensive Net Lease Play

Over the past year, I’ve seen more buyers asking about veterinary-occupied real estate than ever before. I’ve closed two vet clinic transactions and have another currently on the market. Each has offered cap rates above 7% and drew multiple offers within a week.

Investors are looking for yield that still comes with credit. These properties tend to check both boxes. They offer stronger tenancy than typical mom-and-pop retail but better returns than many corporate net lease tenants today.

What’s interesting is how resilient these assets have been, even when the story isn’t perfect. Older buildings, shorter remaining lease terms or double net structures aren’t scaring off qualified buyers if the location and operator make sense...

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RSK: I have to agree. I did a transaction like this with CRESA and TJ a few years ago. My buyer eventually sold to an investment group who leases the properties back from him.Everyone won on this deal.