Cautious Optimism On The Lending Side Of Healthcare Real Estate

After experiencing a challenging 2023, the healthcare real estate (HRE) lending sector saw some stabilization in 2024. As we look ahead to the remainder of 2025, what can we expect?

At a recent HRE conference, a panel of experts – including three lenders and a professional specializing in debt solutions for borrowers – shared their perspectives. While they agreed that significant growth might not be on the horizon, they expressed confidence that the capital markets would provide a stable and solid environment for acquisitions and development projects.

“In terms of liquidity in the market, if you had asked me this time last year, I would’ve noted that a significant portion of the active lender community was either cautious or entirely sidelined,” said John Nero, Senior Managing Director of the Healthcare Capital Markets team at Newmark Group Inc. “However, this year, I’ve certainly noticed an improvement, with an increase in liquidity.”

Mr. Nero moderated a panel on capital markets and lending in the HRE sector during the 2025 Revista Medical Real Estate Investment Forum, held at the PGA National Resort in Palm Beach Gardens in early February. The session, titled Healthcare Real Estate Capital Markets: Debt Investment Strategies and Sustainability in 2025, highlighted the outlook for the year ahead.

When Mr. Nero asked the panelists about their expectations for 2025, Steve Reedy, Head of Medical Office Banking at First Citizens Bank, shared that the bank is “projecting a stable year, with more banks entering the market.” He noted, “Competition on the lending side is increasing, which is healthy for the market.”

Although liquidity is improving, Mr. Reedy cautioned that the market is unlikely to see a sharp increase in the number or size of transactions in 2025.

“There may be some larger portfolios that close this year, as there’s a lot of talk about them, but whether those materialize remains to be seen. However, I do believe we’ll see larger transactions in 2025 than in recent years.”

The panel also featured:

• Winston Abbott, VP of National Sales at Siemens Financial Services (headquartered in Iselin, NJ);
• Zack Holderman, Senior VP of the Capital Markets group at CBRE Group Inc.;
• Erik Tellefson, Senior Managing Director and Head of Healthcare Real Estate Lending at Capital One Financial Corp.

Source: HREI