ORLANDO INDUSTRIAL7.2%+0.4%
MIAMI MULTIFAMILY$3,420+1.2%
TAMPA RETAIL4.8%-0.2%
US-192 CORRIDOR$340/SF+4.1%
30Y FIXED MORTGAGE6.72%-0.08%
FED PROBABILITY (PAUSE)92%+2%
ORLANDO INDUSTRIAL7.2%+0.4%
MIAMI MULTIFAMILY$3,420+1.2%
TAMPA RETAIL4.8%-0.2%
US-192 CORRIDOR$340/SF+4.1%
30Y FIXED MORTGAGE6.72%-0.08%
FED PROBABILITY (PAUSE)92%+2%
ORLANDO INDUSTRIAL7.2%+0.4%
MIAMI MULTIFAMILY$3,420+1.2%
TAMPA RETAIL4.8%-0.2%
US-192 CORRIDOR$340/SF+4.1%
30Y FIXED MORTGAGE6.72%-0.08%
FED PROBABILITY (PAUSE)92%+2%

What is the realistic medical office conversion underwriting today?

A medical office conversion of Class B/C office in Orlando's AdventHealth-adjacent corridors underwrites to an equity multiple of 1.8×–2.5× and an approximate IRR of 14–22% depending on acquisition basis and conversion capex. The acquisition range for conversion-viable Class B/C in the University/436 and Airport corridors is $80–$120/SF for buildings with the structural prerequisites — minimum 10-foot ceilings, adequate electrical, accessible plumbing risers, parking ratio of 4:1,000 or better. Conversion capex for full clinical build-out runs $80–$120/SF plus 15–20% for soft costs and carrying costs during the 12–18 month conversion period. The exit is priced at 5.5–6.5% medical office cap rates against $20–$28/SF NNN stabilized rents — which are achievable for AdventHealth-affiliated physician practices that value proximity to hospital campuses over building age. The most important underwriting variable is pre-leasing: a building with 40–50% pre-committed to an AdventHealth-affiliated practice group before conversion begins trades at the better end of the cap rate range at exit. Without pre-leasing commitment, underwrite conservatively at 6.25–6.5% exit cap.