By Tom Bigansky, Broker/Owner, North Village Realty
A medical office building can command a premium over general office space, but the words “medical office” do not create that premium on their own. Buyers look at whether the property works for a practice, whether patients can reach it easily, the strength of the tenancy, and the income or occupancy opportunities the building offers.
For an owner considering a sale on Long Island, those differences can change both the buyer pool and the sale strategy. North Village Realty’s work in Merrick, Plainview, East Meadow, and Oceanside shows why a medical property should be evaluated on its specific characteristics, not simply compared with the nearest office building.
What separates medical space from general office?
Exam rooms with sinks, accessible entrances and restrooms, and a layout that accommodates patients and staff can make a building more useful to a medical practice. In a multilevel property, elevator access can be especially important. Waiting areas, circulation, privacy, and the relationship between treatment rooms and reception also influence whether an existing layout fits a prospective occupant.
Existing improvements may reduce the work a new practice needs to undertake, but their value depends on the specialty and their condition. A dental practice, an orthopedic group, and a general medical office may need different configurations. An owner should understand which improvements a buyer can reuse and which may need replacement.
Parking can determine who will consider the building
Parking is one of the first issues we discuss with owners evaluating medical use. Patients, staff, and accompanying family members can place different demands on a property than a conventional office tenancy. The number of spaces matters, but so do convenient entrances, accessible routes, drop-off opportunities, and how easily vehicles enter and leave the site.
For an office building with potential for medical occupancy, parking and elevator access can help determine which practices are realistic prospects. Medical conversion should be evaluated against the proposed use, physical layout, local approvals, and accessibility requirements. A building is not automatically suitable simply because an owner wants to market it to doctors.
Merrick: an established practice and a $9.5 million sale
North Village Realty represented the seller of 1728 Sunrise Highway in Merrick, acquired by Northwell Health for $9.5 million. The property was already occupied by the Orlin & Cohen orthopedic practice.
In our discussions with buyers, the established practice and the importance of this location to its operations were central to the property’s appeal. Buyers understood that this was an active medical location with a substantial healthcare organization behind the occupancy.
The lesson for an owner is to evaluate both the real estate and the tenancy. Lease term, rent increases, renewal options, the legal tenant and any guaranty, and the cost of replacing an occupant all affect how a buyer underwrites the property. A recognizable name is useful context, but the actual lease obligations matter.
A tenant’s interest should be tested against the market
An existing medical tenant may be a logical buyer. That does not mean an owner should establish the price through a conversation with that tenant alone.
A competitive marketing process can bring investors and other qualified purchasers into the discussion. Comparing their offers gives the seller a stronger basis for evaluating a tenant’s proposal. If the tenant wants to own the building, it can compete for it. If another buyer offers a better overall transaction, the seller has an alternative, subject to any applicable lease or purchase rights.
The objective is to compare price alongside financing, contingencies, timing, and the buyer’s ability to close. The highest headline number is only one part of the decision.
Plainview: location and a renovation opportunity
North Village Realty completed the $6.7 million sale of Central Park Medical Plaza at 700 Old Country Road in Plainview. The approximately 33,000-square-foot property was 78% occupied at sale and required capital improvements.
The approximately two-acre site at a signalized corner on Old Country Road was a key attraction for the buyer. The buyer’s plan is to fully renovate the property as a medical complex.
This was a different proposition from purchasing a fully occupied property with limited near-term work. The opportunity combined existing income, a prominent location, and the potential to improve the building. For sellers, vacancy and needed renovations do not eliminate buyer interest, but they need to be reflected in the pricing and marketing strategy.
East Meadow: selling while keeping the practice in place
At 325 Merrick Avenue in East Meadow, North Village Realty represents the seller in a medical office transaction currently under contract. The property’s last asking price was $5.4 million. That is the asking price, not a disclosed contract or closing price.
The planned transaction combines a sale-leaseback for the seller with space for the purchasing end user to occupy. It is designed to let the seller receive proceeds from the real estate sale while remaining in place long term. The buyer can accommodate its own occupancy needs while receiving income from other tenants.
Parking, exposure, multiple tenant income streams, and the location across from NYU’s ambulatory care center helped support interest. The arrangement illustrates why the structure of a transaction deserves attention before marketing begins. Selling the building and continuing to operate from it can be compatible goals when the space allocation, lease terms, and buyer’s needs align.
Oceanside: a medical sale-leaseback for an income-focused buyer
North Village Realty is also handling the medical property at 2983 Long Beach Road in Oceanside, currently under contract. The transaction is structured as a triple-net sale-leaseback involving a dental practice specializing in sleep apnea and a private investor seeking passive income.
This is another way to connect a practitioner’s real estate goals with an investor’s objectives. For a buyer, the rent, lease duration, tenant financial strength, and allocation of property expenses all influence the investment. A triple-net structure does not eliminate every ownership responsibility; the specific lease determines what each party must cover.
What should owners discuss before selling?
Before setting an asking price or committing to a new lease, an owner should understand how investors, medical end users, and the existing occupants may each evaluate the property. The same building may support more than one strategy, with different implications for proceeds, continued occupancy, and timing.
That is where current buyer conversations and relevant transaction experience become useful. We look at the parking, medical improvements, lease terms, income, location, and available space together, then identify which sale structure and buyer audience fit the owner’s objectives.
Considering a sale of your medical office building? Contact Tom Bigansky at North Village Realty to discuss how these variables affect your property’s value and whether an investment sale, end-user sale, or sale-leaseback deserves consideration.
Discuss Your Medical Property · Call (516) 255-4300
Transaction status reflects November 7, 2026. East Meadow and Oceanside are under contract, not completed sales. Property and transaction details are based on North Village Realty’s brokerage involvement and Tom Bigansky’s account.