The Value of Specialized Healthcare Real Estate Expertise

By Erik Hill, MAI, CRE, CCIM, MRICS, Managing Director

Healthcare real estate assets are as unique as the patients they serve. They can be, and most often are, highly specialized buildings designed to support optimal patient outcomes.

Whether it is a hospital, medical outpatient building, surgery center, or rehabilitation facility, these complex buildings are best served by real estate professionals who specialize in healthcare real estate.

Brokers: When it comes to the sales and leasing of a healthcare asset, having a real estate broker that understands a good medical tenant mix, knows what tenants/users are looking for in a building, and the potential patient origins for the property can greatly improve the chances for success for the asset. Healthcare brokers often have relationships with other healthcare professionals in the local market and across the country. This network of healthcare-focused professionals enhances the broker’s ability to identify and connect with the right buyer, seller, or tenant for your healthcare asset.

Property Managers: Operating and managing a healthcare property can be highly complex. For many healthcare assets, there can be extra layers that a property manager needs to be able to navigate to ensure the smooth operation of the building. Some of these healthcare-specific considerations include regulatory and compliance requirements such as OSHA, HIPAA, and the Joint Commission.

Additionally, the asset is likely to have specialized components depending on the type of tenants within the building. These can include medical gas, imaging equipment with shielding, back-up generators, oversized elevators, specialized HVAC, etc. Medical practices often have long or unconventional hours which require property managers to provide responsive, 24/7 maintenance availability. If repair work needs to take place within the building, great care must be taken not to disturb the tenants or their patients, which often requires the work to be done after hours or overnight.

Developers: Bringing a new healthcare asset out of the ground or renovating an existing structure can be very challenging. Using a developer that is well versed in the type of healthcare asset you’re constructing can be the difference between staying on budget and diving deep into the red. Healthcare developers can be local, regional, or national and many have developed a specialization in certain healthcare property types. Healthcare developers often utilize specific sub-contractors that have deep healthcare experience that can help identify issues and resolve them in a timely manner to keep a project on track.

Due Diligence Professionals: Healthcare properties can be unique in their construction and may contain highly specialized systems for the operation of the facility. When a property condition assessment is required as part of a transaction or when needed for capital budget planning, utilizing a due diligence professional who is familiar with healthcare assets and their unique construction can save time and money. Those who are well versed in the healthcare space can more accurately estimate the cost and timing associated with the complex components of healthcare assets. These items may include in-wall medical gas, specialized HVAC, water treatment/testing, shielding, refrigeration systems, vacuum suction equipment, etc.

Appraisers: As healthcare assets are a specialized subset of the commercial real estate industry, there are lenders, brokers, investors, and developers who are dedicated only to this property type. Additionally, there are valuation professionals that are dedicated to this space as well.

Understanding how these properties are marketed, constructed, transacted, and financed is critical to understanding the value of these unique properties. For example, a medical office building should not be compared to a general office building, and an in-patient behavioral facility should not be compared to a seniors housing facility. There are nuances to each healthcare asset type and using a healthcare valuation professional will help ensure the asset is accurately analyzed based on the market metrics for that specific asset type.

For information on our specialty healthcare appraisal team, our healthcare due diligence team, or recommendations for other healthcare specialists, please contact Erik Hill at Partner Valuation Advisors.

Erik Hill, MAI, CRE, CCIM, MRICS
Managing Director - National Healthcare and Life Science Lead
Partner Valuation Advisors
[email protected]
214-234-9566

Industrial Outdoor Storage Key Takeaways from NAIOS Atlanta

By Vytas Norusis, MAI, Executive Vice President

Industrial Outdoor Storage continues to gain traction. The conversations at the National Association of Industrial Outdoor Storage (NAIOS) Atlanta Conference made it clear that the sector is moving into a more mature and increasingly competitive phase.

Attendance tells part of the story. The conference grew from roughly 450 attendees in 2025 to more than 700 in 2026, reflecting the level of interest and capital flowing into the space. But what stood out more was how investors and operators are approaching IOS today.

A More Nuanced Investment Landscape

As IOS evolves, so does investment strategy.

Understanding your counterparty matters more than ever. Public and private groups often come to the table with different priorities. Some are focused on occupancy, others on rent growth, and many are balancing flexibility in ways that go beyond price alone.

Underwriting is also getting more thoughtful. Tenant productivity is becoming a central focus. The more functional and efficient a site is for the tenant, the more it supports long term rent growth and performance.

Operational Discipline Is Essential

IOS is not a passive asset class.

Success comes from staying engaged at both the asset and portfolio level. Owners are continuously looking for ways to improve operations, enhance usability, and get more out of each site. More than ever, returns are driven by how well you execute after the deal closes.

Demand Drivers Remain Strong

Infrastructure continues to be a major driver of demand.

Data centers, rail expansion, and broader logistics investment are all supporting industrial growth, which in turn supports IOS. These trends are not new, but they continue to reinforce the sector.

We are also seeing IOS follow a path similar to other asset classes. Self-storage is a good example. It helped establish a playbook around operations, scalability, and institutional adoption that is now showing up in IOS.

Local Dynamics Still Matter

Even with growing institutional interest, IOS is still very much a local business.

Zoning, entitlement, and municipal relationships can make or break a deal. Getting in front of those conversations early goes a long way in avoiding issues later and improving certainty of execution.

Competing in a Crowded Field

There is more capital in the space, and that is changing how deals get done.

Price is still important, but it is not the only factor. Sellers are paying close attention to certainty of close, track record, and whether a buyer can execute consistently. In a crowded bid process, those factors often carry real weight.

Still Early, but Moving Quickly

Most people at the conference described IOS as being in the third inning. There is still runway ahead, but the pace of change is picking up.

There is a lot of optimism heading into the second half of 2026. Larger deal sizes are coming to market, giving institutional buyers a clearer entry point. At the same time, there is an understanding that discipline still matters. The opportunity is there, but so is the need to execute carefully.

Why Appraiser‑Prepared FMV Carries More Weight in Healthcare Leasing

By Erik Hill, MAI, CRE, CCIM, MRICS, Managing Director

Healthcare companies must adhere to the Stark Law and the Anti-Kickback Statute (Stark/AKS), especially when related to real estate leases involving healthcare providers. Failure to comply with these federal regulations can result in heavy monetary penalties, jail time, or permanent exclusion from receiving Medicare/Medicaid reimbursements.

When healthcare providers lease real estate to a referral source (i.e. physicians, specialists, or other health systems), the lease rate must be at Fair Market Value (FMV) and have commercially reasonable lease parameters to comply with Stark/AKS. A FMV analysis evaluates the rent a subject property should command in the open market, along with other commercially reasonable lease terms (including, but not limited to, term length, tenant improvement allowance, free rent, etc.). There are two primary sources from which an FMV analysis can be obtained, a real estate broker and a real estate appraiser.

Broker: Typically, a broker will issue a Broker’s Price Opinion (BPO) or a Broker’s Opinion of Value (BOV). The broker will usually offer these reports at no cost or a low cost as a service to an existing client; however, the analysis put into these reports is usually commensurate with the fee charged. Many brokers will use data from various data providers, such as CoStar, Crexi, MLS and their own database. However, most brokers are not calling to verify the accuracy of the data from third party providers, and they are usually not adjusting the comparables based on the attributes of the subject. In many cases, data is pulled from third-party sources and incorporated into a report with limited verification or adjustment. The resulting value range may or may not accurately reflect the fair market value of the subject. Often, a BPO is used as a supporting document to demonstrate that an effort was made to identify fair market value, rather than as a fully substantiated valuation opinion.

Appraiser: An appraiser will either issue an Appraisal or a Fair Market Value/Fair Market Rent analysis. These reports will contain sales and/or lease comparables that have been verified for accuracy and will contain an analysis to properly adjust the comps based on the subject’s attributes, usually resulting in a more accurate value indication. Additionally, these reports will be USPAP compliant, adding an additional layer of quality control, competency, and credibility.

An appraiser’s report is typically more robust and contains more data and analysis than a BPO/BOV. Further, the appraiser is a disinterested third party who has no conflict of interest in providing unbiased FMV.

Risk Tolerance: The choice of which type of report to obtain ultimately comes down to the client’s risk tolerance. A BPO/BOV may provide enough data to satisfy the client’s requirements to comply with Stark/AKS. However, if the client is audited, or if the leases come into question, the BPO/BOV may not have enough data or analysis to support the conclusions. Alternatively, having a report prepared by an Appraiser may be more defensible, as they are prepared with a more thorough, well-supported methodology. Given the steep consequences associated with a Stark/AKS violation, obtaining an FMV report from an appraiser could prevent costly penalties.

Updating Values: In most cases, our clients have elected to receive annual updates on their valuations. Depending on the market in which the asset is located, updating more often (half year or quarterly) may be needed, if the local market is very dynamic. Conversely, if the asset is in a stagnant market, updating on a longer cycle may be sufficient. Ultimately, the client’s risk tolerance and market volatility will dictate the update schedule, but in most cases, an annual update should suffice.

Compliance with Stark Law and the Anti-Kickback Statue is not optional. Non-compliance carries significant financial and operational consequences, making defensible FMV support a critical component of healthcare real estate decision-making. While a BPO/BOV may give general guidance as to the FMV of your healthcare asset, it may also lack sufficient data and analysis to fully support the conclusions. An FMV report from a qualified healthcare appraiser will contain confirmed data that is thoroughly analyzed and adjusted to provide a value that can be relied upon when making healthcare real estate decisions.

For information on obtaining an appraisal or FMV from our specialty healthcare appraisal team, please contact:

Erik Hill, MAI, CRE, CCIM, MRICS
Managing Director - National Healthcare and Life Science Lead
[email protected]
214-234-9566

Partner Valuation Advisors Launches New Right-of-Way Practice

Partner Adds Industry Veterans Mark Sadler and T.J. Smith to establish and lead Partner's newly formed Right-of-Way practice.

Dallas–Fort Worth, TX — January 12, 2026 — Partner Valuation Advisors (Partner) is pleased to announce that Mark Sadler and T.J. Smith have joined the firm as Executive Vice Presidents to establish and lead Partner’s newly formed Right-of-Way practice. Based in the Dallas–Fort Worth metroplex, Sadler and Smith bring a combined 40 years of right-of-way, eminent domain, infrastructure, and litigation-support valuation expertise, marking a significant expansion of Partner’s national capabilities.

“We could not be more excited to welcome Mark and T.J. to the team,” said James Graber, MAI, Senior Managing Director, who oversees Partner’s Dallas office and South-Central region. “Both are deeply respected across the right-of-way and infrastructure valuation world. Their arrival not only strengthens our Texas platform, but positions Partner as a national leader in one of the most important and rapidly expanding valuation disciplines.”

Sadler brings nearly twenty years of experience focused on right-of-way and litigation support. He has been designated as an expert witness in State and Federal court and is frequently retained to provide testimony in special commissioners’ hearings for both landowners and condemning authorities. His background includes valuation work for roadway expansions, transportation corridors, utility easements, mixed-use developments, and a broad range of complex land and commercial assets.

Smith, who has been active in real estate valuation since 2006, has extensive experience supporting major transportation agencies, utilities, engineering firms, and public infrastructure sponsors. His work spans eminent domain assignments, corridor and impact studies, easement and diminution in value analyses, land swaps, and litigation-related appraisal services for large-scale infrastructure projects across Texas and the broader region.

“The addition of Mark and T.J. represents a major milestone for Partner,” said Eric Enloe, MAI, CRE, FRICS, Co Founder and Senior Managing Director. “They bring the judgment, credibility, and real-world experience required for high stakes right-of-way and litigation assignments. Their leadership immediately elevates what we can offer our clients.”

“Joining Partner is the ideal next step for us,” said Sadler. “The firm’s independence, national reach, and commitment to high caliber, litigation ready valuation work align perfectly with how we approach this specialty.”

“We’re excited to build a best in class Right-of-Way & Litigation practice here in DFW,” added Smith. “Infrastructure demand is only accelerating, and we’re ready to help clients navigate it with fair, defensible valuations and clear communication.”

About Partner Valuation Advisors

Partner Valuation Advisors, LLC is a national commercial real estate valuation advisory firm that ranks as a top 10 appraisal firm. Partner Valuation Advisors has more than 100 valuation professionals nationally. Partner Valuation Advisors is led by Brandon Nunnink, CFA, and Eric L. Enloe, MAI, CRE, FRICS. Team members hold appraisal licenses in all 50 states and the firm has offices in Austin, Baltimore, Boise, Boston, Buffalo, Charlotte, Chicago, Cincinnati, Cleveland, Dallas, Denver, Gainesville, Grand Rapids, Houston, Indianapolis, Jacksonville, Kansas City, Knoxville, Los Angeles, Miami, Mobile, Myrtle Beach, Naples, New York, Northern New Jersey, Philadelphia, Phoenix, Portland, Raleigh, San Diego, Seattle, St. George, St. Louis, Tulsa, and Washington, D.C. Partner Valuation Advisors performs commercial real estate valuations nationally for investors, lenders, and real estate occupiers and is an affiliate company of Partner Engineering and Science, Inc. Please visit us online at www.PartnerVal.com.

Matt Stephens Appointed Director Amid Partner's Continued Growth

Stephens brings over 20 years of experience to the St. Louis office

St. Louis, MO – January 8, 2026 – Partner Valuation Advisors (Partner) is excited to announce the addition of Matt Stephens as a Director based in St. Louis. Matt brings over 20 years of experience advising institutional investors, private equity firms, and family offices across the U.S., with a proven track record of executing more than $5 billion in transactions and advisory assignments over the past five years. Matt is a Midwest regional lead of the National Multifamily Practice and a member of the National Self-Storage Practice.

Matt’s expertise spans investment sales, strategic advisory, and asset valuation across all major property types. Recognized as a multi-year CoStar Power Broker and top producer, Matt has earned a reputation as a trusted advisor in complex, high-value engagements. Most recently, he served as Director of Capital Markets at Cushman & Wakefield, where he advised clients on acquisition and disposition strategies and delivered advisory services.

“We’re thrilled to have Matt on board,” said Ryan McDonald, Managing Director at Partner. “He’s spent decades guiding clients through some of the most complex transactions in the industry, and that experience is going to be a huge asset for our team and our clients. Matt knows how to bring clarity to challenging deals, and that’s exactly what we strive for every day.”

“I was really drawn to the momentum here,” said Matt Stephens. “Partner has built something special, a culture that values collaboration and a platform that’s growing fast. Being part of that story and helping shape the next chapter is what excites me most.”

Matt holds certifications as a Certified General Appraiser and Real Estate Salesperson and is well-versed in advanced financial modeling and market analysis.

About Partner Valuation Advisors

Partner Valuation Advisors, LLC is a national commercial real estate valuation advisory firm that ranks as a top 10 appraisal firm. Partner Valuation Advisors has more than 100 valuation professionals nationally. Partner Valuation Advisors is led by Brandon Nunnink, CFA, and Eric L. Enloe, MAI, CRE, FRICS. Team members hold appraisal licenses in all 50 states and the firm has offices in Austin, Baltimore, Boise, Boston, Buffalo, Charlotte, Chicago, Cincinnati, Cleveland, Dallas, Denver, Gainesville, Grand Rapids, Houston, Indianapolis, Jacksonville, Kansas City, Knoxville, Los Angeles, Miami, Milwaukee, Mobile, Myrtle Beach, Naples, New York, Northern New Jersey, Philadelphia, Phoenix, Portland, Raleigh, San Diego, Seattle, St. George, St. Louis, Tulsa, and Washington, D.C. Partner Valuation Advisors performs commercial real estate valuations nationally for investors, lenders, and real estate occupiers and is an affiliate company of Partner Engineering and Science, Inc. Please visit us online at www.PartnerVal.com.

Inside the Buy Box

A Look at IOS Acquisitions Criteria

By: Vytas Norusis, MAI, National Practice Lead for IOS Valuation
November 11, 2025

The Industrial Outdoor Storage (IOS) market has burst onto the institutional investment radar in recent years, with institutions such as Stockbridge, J.P. Morgan, TPG Angelo Gordon, among others making significant investments in IOS operators since 2021. The institutional interest in IOS has crowded the playing field in core industrial markets, as portfolio aggregators are considering the exit opportunities from day one, building portfolios to maximize flexibility and marketability upon exit of the portfolio.

The current state of the market sees the primary method of exit for an aggregator as a recapitalization as opposed to an asset sale, which leads to more disciplined investment decisions, as the aggregator will remain in the deal for a longer timeframe. In this piece, we will explore the most common acquisitions criteria across different aggregators active in IOS, key portfolio construction considerations, and where we see the IOS market heading in 2026.

What is an IOS Property?

In order to understand the acquisitions criteria for IOS assets, the important first step is to define what is considered an IOS property. IOS is defined at a high level as follows:

Low Coverage – A typical IOS property will have a site coverage of 30% of less, with the bulk of the functional utility of the site being driven by the site improvements/ability to store materials, vehicles, or products outside.
Outdoor Storage Allowed by Right – Zoning is the most critical component of an IOS site, with many municipalities limiting the storage of vehicles, materials, or products outside.
Location near Transportation Linkages – As with traditional industrial, locations near logistics nodes is paramount for most IOS uses.

Typical IOS properties will have non-specialized building improvements, allowing a multitude of users to use both the building and site with minimal capital expenditures necessary to renovate the building. While truck terminals are considered to be an IOS use, the terminal market is more mature than the broader IOS market, and is better understood by investors and users alike. The focus of this piece will be on the less traditional IOS assets.

Most Common Criteria

While most IOS investors agree on the general definition of IOS, each investor has distinct criteria that they use to filter properties when looking for acquisitions opportunities. In reviewing the acquisitions criteria available on several of the top IOS aggregators’ websites, a few common themes shape their investment decisions. The most common criteria are as follows:

Zoning – As previously noted, the base level criteria to be considered a viable IOS site is to have zoning that allows for outdoor storage of vehicles, materials, or products. With that said, having a single allowable use within these criteria is typically considered significantly riskier than a zoning classification that allows for a multitude of outdoor storage uses. The local municipalities and zoning administrators play a large role in the value of an IOS site, as the more flexible the zoning and wider the range of allowable uses, as well as the likelihood of continued approval for IOS uses. Typically zoning suitable for IOS sites will be the heaviest industrial zoning in any particular jurisdiction. For this reason, having flexible IOS uses with several potential uses as permitted by right is a common criteria for investors.
Location – Across the spectrum of IOS aggregators, the emphasis on location proximate to transportation linkages is a common theme; however, several aggregators are focused on the top 20/30/40 markets within the US. The differentiation between transportation linkages and logistics nodes is an important one, as a location in Oklahoma City has great access to transportation but is not considered to be a comparable logistics node to the nearby Dallas-Fort Worth market. Likewise, investors are looking for areas that have stable to growing population bases, as several IOS subsectors are focused on the construction and building materials supply industries. Having access to both logistics nodes and population growth increases the depth of the prospective tenant pool, which helps drive rental rate growth.
Clean Environmental – Zoning and environmental contamination are the two items that can cause even the best-looking deals to end before they’ve even begun. Few of the top investors in the IOS sector have an appetite for environmentally contaminated sites, as buying a site that is contaminated can bring costly remediation efforts, increased liability, use constraints, and difficulty obtaining financing and insurance. While many sites that have the requisite zoning for IOS are in historically heavy industrial areas, those with contamination issues prove to be challenging for investors as they require additional due diligence to fully understand the risks associated with the purchase.

Note that the most common criteria do not include any factors regarding in-place tenancy. At this stage of the maturation of the IOS market, aggregators are primarily looking for value-add acquisitions, meaning that the investors are more readily willing to take on leasing/vacancy risk than the risks associated with zoning, location, or environmental components.

While a long term, triple net leased IOS site such as a 10-year term equipment rental facility would be attractive for most investors, the value-add nature of most aggregators’ portfolios tends to shy away from these sites as pricing on these assets does not leave sufficient upside to add value.

IOS Portfolio Construction

With the basic acquisition criteria identified, we will now explore some of the factors that aggregators are considering in building their portfolios with an eye on maximizing returns.

Portfolio Diversification – Portfolio diversification is an important risk mitigation tool that aggregators use to separate their portfolios from the competition. Diversification does not necessarily mean geographic diversity, as evidenced by groups like CanTex Cap i tal, a fundamentally sound and diverse portfolio can be built in a single market. When aggregators are building with an eye towards portfolio diversification, they’re trying to account for the ebbs and flows in demand for different user groups within the IOS space. A portfolio that only has truck terminals in port markets will be far more susceptible to shifts in the global economy than a portfolio of similar assets that includes non-port markets such as Dallas and Chicago. Likewise, a portfolio of building material supply yards in the Sunbelt can be detrimentally impacted to a higher degree by rising material prices than a portfolio in the Sunbelt that includes logistics or equipment rental users. By providing a diversity in locations, use types, and flexibility in uses, aggregators are able to mitigate downsides that are driven by broader market forces.
Tenant Credit – As aggregators are building portfolios of value-add assets, some have targeted specific investment grade credit-rated tenants even if they do not fit in the general locations that would be considered target markets. Becoming the de-facto “corporate landlord” for large corporate tenants can lead to additional opportunities for build-to-suit locations and give the aggregator a leg up on any site selection searches that the tenant may be embarking on in the future. Additionally, the focus on corporately backed leases increases the durability of the income stream, making it more attractive to institutions that serve as the exit strategy for the aggregators.
Deep focus on Fewer Markets – In conjunction with the diversification strategy, some aggregators have opted to eschew broader national expansions for a deeper dive into markets that they are already active in. With an opaque market like IOS, investing in markets that have already been vetted and researched allows for a greater speed of execution, as properly vetting an expansion market typically takes several months if not a year for an aggregator’s initial investment. Buying in a new market is not as simple as having a broker present an attractive investment opportunity; it takes time to understand the local zoning landscape, users present in the market, users that are interested in expanding in the market, local regulations, etc. Even with a deep focus on a market, challenges still arise, but by being focused on markets that they are active in, aggregators can mitigate the unknown risks that can come from expanding too far too fast.

For portfolios to be attractive to the most aggressive capital groups looking to invest in IOS, risk mitigation is key to maximize returns.

What We Expect in 2026

With an understanding of how aggregators are approaching buying individual assets and constructing portfolios, we now shift gears to talk about what we are expecting in 2026.

The IOS space still has a significant amount of runway to continue to grow, as despite the aggregation by the current players, the market is still highly fragmented. The fragmentation of the sector will continue to provide accretive investment opportunities for those that can dig deep, move fast, and execute consistently. When IOS first became its own niche asset class, early movers were able to learn on the job, with mistakes being made at fairly low stakes given the average deal size was less than $5 million; however, with the growth of the sector and capital influx, the room for error has gotten significantly lower. The combination of more eyes on the sector and higher purchase prices will lead to a continued focus on the fundamentals approach that aggregators have taken in 2025.
The coming year is expected to bring several new capital entrants into the space, through asset purchase, recapitalization, or lending. 2024 saw Peakstone enter the space with their acquisition of a portfolio from Alterra, while 2025 included several recapitalizations from pension funds and institutional investors. We expect 2026 to bring several recapitalizations from well-known institutions, as well as the entrance of foreign capital into the IOS space.
The increased lender mix will continue to drive down the cost of debt, as institutional lenders can provide more aggressive terms than the regional/local banks that have historically been the lifeblood of IOS, which will allow for pricing to continue to compress. Over the past several years, one of the top questions with IOS has been how do you price it on a capitalization rate and IRR basis. While limited price discovery in the space has occurred for stabilized assets, in 2026, we believe that IOS will continue its move towards pricing on par with comparable industrial class, with Class A IOS assets and portfolios trading on par with Class A industrial.
From a rent growth standpoint, several of the mature markets have seen rental rate growth take a step back, as the institutionalization of the space has taken much of the locally owned inventory off the market. Mature markets include many of the largest markets in the country, such as Chicago, Los Angeles, Northern New Jersey, Atlanta, and Dallas, among others. While historically IOS has shown outsized rent growth, this was partially due to the historical underpricing of the rental rates by local ownership, allowing for aggregators to get significant rental rate increases when legacy leases expired. In mature markets, we expect rental rates to normalize, albeit at higher growth rates than traditional industrial due to the scarcity of the product type and barriers to entry for new competition. Several of the secondary IOS markets have more runway for outsized rental rate growth, though even these markets are not immune to broader trends in the industrial sector, which will mitigate some of the ability to push rents higher. Secondary IOS markets would include Salt Lake City, Seattle, Portland, Boston, and Orlando. With the potential of slowing economic growth, tenants are becoming more price sensitive, mitigating rental rate growth in all markets.
In conjunction with the growth of small bay industrial as a popular investment class, we expect to see an increase in firms that are focused on what they consider irreplaceable assets, combining IOS and small bay industrial into investment vehicles. The flexibility in investment criteria will allow these investors to avoid having to classify investments into distinct categories based on what their capital expects, and outsized returns can be captured in some “tweener” assets that are too high coverage to be considered IOS, but don’t fit into any of the other traditional industrial categories. Several investment groups are already employing such a strategy, and we expect this trend to expand and continue.

The IOS sector has tremendous momentum heading into 2026, with most aggregators that we spoke with indicating that 4Q 2025 will be a banner quarter. Despite the potential headwinds, the fragmentation and higher returns than traditional industrial will continue to propel the niche to follow a similar trajectory as self-storage, mobile home communities, and build-to-rent housing as an investment sector outside of its broader asset class.

About Partner Valuation Advisors

Partner Valuation Advisors, LLC is a national commercial real estate valuation advisory firm that ranks as a top 10 appraisal firm. Partner Valuation Advisors has more than 100 valuation professionals nationally. Partner Valuation Advisors is led by Brandon Nunnink, CFA, and Eric L. En l oe, MAI, CRE, FRICS. Team members hold appraisal licenses in all 50 states and the firm has offices in Austin, Baltimore, Boise, Boston, Buffalo, Charlotte, Chicago, Cincinnati, Cleveland, Dallas, Denver, Gainesville, Grand Rapids, Houston, Indianapolis, Jacksonville, Kansas City, Knoxville, Los Angeles, Miami, Milwaukee, Mobile, Myrtle Beach, Naples, New York, Northern New Jersey, Philadelphia, Phoenix, Portland, Raleigh, San Diego, Seattle, St. George, St. Louis, Tulsa, and Washington, D.C. Partner Valuation Advisors performs commercial real estate valuations nationally for investors, lenders, and real estate occupiers and is an affiliate company of Partner Engineering and Science, Inc. Please visit us online at www.PartnerVal.com.

Beyond the Anchor: How Experiential Retail is Rewriting the Rules

By: Joe Miller, MAI, MRICS, National Practice Lead for Retail Valuation
November 4, 2025

In an era where traditional retail anchors are losing their gravitational pull, a new wave of lifestyle-driven concepts is stepping into the spotlight. Shuffleboard clubs, pickleball venues, and food halls tucked inside casinos are no longer fringe experiments. They’re becoming the heartbeat of retail revitalization. Casinos themselves are increasingly serving as multi-dimensional anchors, blending gaming, dining, shopping, and entertainment experiences that draw diverse audiences

These concepts are more than just novelties. They represent a strategic pivot toward experiential retail, a segment that continues to show resilience even as regional malls face mounting pressure from store closures and shifting consumer habits. While grocery-anchored centers and long-term net lease properties remain investor favorites, it's the unexpected rise of entertainment-infused retail that’s capturing attention in both media and client conversations.

Why They Work: Foot Traffic Without the Spend

One of the most compelling aspects of these new retail formats is their ability to drive foot traffic and increase dwell time. Shuffleboard clubs and pickleball courts offer social engagement and physical activity, while casinos drive consistent traffic and extend dwell time, creating a halo effect for adjacent tenants. These venues are targeted destinations, drawing visitors who may not be there to shop, but who linger, explore, and share their experiences online.

Although a surge in foot traffic doesn’t always translate into proportional spending, many of these concepts are designed to enhance the overall property experience, not necessarily to boost direct retail sales. That said, their presence can elevate the value of adjacent tenants and contribute to a more vibrant ecosystem.

Filling the Gaps: Dead Space Gets a Second Life

Rather than replacing traditional anchors, landlords are increasingly backfilling long-vacant spaces with high-engagement concepts, especially in secondary markets where retail demand has softened. Successful conversions include casinos, medical offices, entertainment venues, logistics hubs, and select educational uses. While educational tenants can be hit or miss, others have proven effective in stabilizing occupancy and driving traffic.

In contrast, top-tier markets continue to favor more generalized retail tenants for backfilling, maintaining a conservative approach to tenant mix. In places where risk tolerance is higher and innovation is welcomed, these lifestyle concepts are thriving.

Measuring the Impact: ROI Beyond the Register

For landlords, evaluating the return on investment for these concepts requires a broader lens. It’s not just about rent per square foot, it’s about activation, engagement, and long-term viability. These venues often serve as anchors of experience, drawing consistent traffic and creating a halo effect that benefits surrounding tenants.

These concepts also generate indirect returns, enhancing brand visibility, driving social media engagement, and creating a differentiated identity for the property. Their presence often lifts the performance of nearby tenants, creating a synergistic effect that supports long-term viability.

The Fine Print: Zoning, Clauses & Cash Flow Risk

As store closures reshape occupancy and valuation across the sector, landlords are turning to high-engagement concepts to stabilize assets. Zoning is generally flexible in large retail developments, with many adaptive uses, casinos excluded, already permitted.

Anchor transitions can trigger significant legal and financial ripple effects. Many tenants have co-tenancy clauses, and new experiential anchors like casinos or entertainment venues may not meet those terms. If other anchors are also vacant, tenants may opt to vacate or shift to reduced rent or percent-in-lieu arrangements, impacting property cash flow. These clauses often include sunset provisions, allowing tenants to exit entirely after a set period.

As retail evolves, unconventional tenants that bring energy, differentiation, and a sense of place will play a growing role in shaping the next chapter of mall performance.

About Partner Valuation Advisors

Partner Valuation Advisors, LLC is a national commercial real estate valuation advisory firm that ranks as a top 10 appraisal firm. Partner Valuation Advisors has more than 100 valuation professionals nationally. Partner Valuation Advisors is led by Brandon Nunnink, CFA, and Eric L. En l oe, MAI, CRE, FRICS. Team members hold appraisal licenses in all 50 states and the firm has offices in Austin, Baltimore, Boise, Boston, Buffalo, Charlotte, Chicago, Cincinnati, Cleveland, Dallas, Denver, Gainesville, Grand Rapids, Houston, Indianapolis, Jacksonville, Kansas City, Knoxville, Los Angeles, Miami, Milwaukee, Mobile, Myrtle Beach, Naples, New York, Northern New Jersey, Philadelphia, Phoenix, Portland, Raleigh, San Diego, Seattle, St. George, St. Louis, Tulsa, and Washington, D.C. Partner Valuation Advisors performs commercial real estate valuations nationally for investors, lenders, and real estate occupiers and is an affiliate company of Partner Engineering and Science, Inc. Please visit us online at www.PartnerVal.com.

William Picoli Joins Partner Valuation Advisors as Senior Vice President

Bolsters Northeast presence with decades of litigation support and valuation expertise

New York, NY – October 27, 2025 – Partner Valuation Advisors is proud to announce the addition of William Picoli, MAI, CRE, FRICS, as Senior Vice President. With over 35 years of experience and more than 2,500 assignments across 15 states, Picoli brings unmatched depth in valuation, litigation support, and strategic consulting for complex real estate assets.

Bill’s career spans high-profile assignments including the GM Building, 432 Park Avenue, and the Fulton Transit Center. His expertise in ground lease valuation, condemnation, and expert witness testimony has made him a trusted advisor to institutional investors, public agencies, and private owners alike.

“I’ve known Bill for years and have always admired his thoughtful approach to complex valuation challenges,” said Eric Enloe, Senior Managing Director at Partner Valuation Advisors. “He is not only a top-tier expert, but also someone clients genuinely enjoy working with. His focus on litigation and consulting projects results in Bill being a trusted advisor to his clients. We are thrilled to have such a talented professional on our team.”

Bill has advised on large-scale projects for prominent educational, healthcare, and economic development organizations, including Columbia University, NYC Economic Development Corporation, and the NYC Health and Hospitals Corporation. His work has shaped landmark developments, rezoning initiatives, and strategic planning for some of the region’s most complex real estate projects.

Notably, Bill served as a consultant to NYC’s East Midtown Rezoning proposal, advising on the pricing of development improvement bonuses (DIBs) that increased zoning density across 70 blocks.

He also provided valuation and consulting services for Columbia University’s planned acquisition and development of a new 17-acre Manhattanville campus, including complex land and development rights below the streets.

Additionally, his appraisal and development modeling for the Torre Verre Residences (53 West 53rd Street) was pivotal in securing backing from Singapore lenders for the Jean Nouvel-designed ultra-luxury tower adjacent to MoMA.

“I’m thrilled to join Partner Valuation Advisors,” said Picoli. “Their data-driven approach and national footprint align perfectly with my passion for solving challenging valuation problems and delivering clarity to clients.”

William holds a B.A. in Economics from Lake Forest College and is a Certified General Appraiser in multiple states. He is a member of the Appraisal Institute (MAI), Counselors of Real Estate (CRE), and the Royal Institution of Chartered Surveyors (FRICS).

About Partner Valuation Advisors

Partner Valuation Advisors, LLC is a national commercial real estate valuation advisory firm that ranks as a top 10 appraisal firm. Partner Valuation Advisors has more than 100 valuation professionals nationally. Partner Valuation Advisors is led by Brandon Nunnink, CFA, and Eric L. Enloe, MAI, CRE, FRICS. Team members hold appraisal licenses in all 50 states and the firm has offices in Austin, Baltimore, Boise, Boston, Buffalo, Charlotte, Chicago, Cincinnati, Cleveland, Dallas, Denver, Gainesville, Grand Rapids, Houston, Indianapolis, Jacksonville, Kansas City, Knoxville, Los Angeles, Miami, Milwaukee, Mobile, Myrtle Beach, Naples, New York, Northern New Jersey, Philadelphia, Phoenix, Portland, Raleigh, San Diego, Seattle, St. George, St. Louis, Tulsa, and Washington, D.C. Partner Valuation Advisors performs commercial real estate valuations nationally for investors, lenders, and real estate occupiers and is an affiliate company of Partner Engineering and Science, Inc. Please visit us online at www.PartnerVal.com.

Three Years In, Partner Valuation Advisors Rockets to National Prominence as Valuation Powerhouse

Chicago, IL - October 10, 2025 - In just three years, Partner Valuation Advisors (Partner), a national commercial real estate valuation and advisory firm headquartered in Chicago, has emerged as one of the most influential players in the national CRE landscape. Presently, Partner Valuation Advisors has 110 professionals located in more than 40 markets nationally. Partner performs valuations of the Core 4 property types of office, retail, industrial, and multifamily and offers specialty practices in affordable housing, manufactured housing (MHC), seniors housing, self-storage, hotels, and healthcare among others.

The firm completed over 10,000 valuations in 2024, representing a staggering $225 billion in property value—more than double its 2023 volume of 4,465 valuations and $113 billion, and is on its way to surpassing those 2024 numbers in 2025. That growth has earned Partner Valuation Advisors the distinction of being a top 10 valuation firm in the United States.

“We’re often the first call in a transaction,” said Eric Enloe, MAI, CRE, FRICS, co-founder and Senior Managing Director. “That early involvement gives us a front-row seat to what’s happening in the market before it hits the headlines.”

Enloe, a veteran of JLL, co-founded the firm in 2022 with Brandon Nunnink, CFA also formerly of JLL, with a shared vision: to build a valuation firm that could deliver faster, more defensible, and data-driven insights in a market where certainty is in short supply.

Unlike traditional brokerages or capital markets firms, Partner Valuation Advisors focuses exclusively on valuation and advisory services. That singular focus has helped it become an independent authority for institutional investors, lenders, and developers navigating complex deals.

“We’re not trying to sell or finance the asset, we’re here to value it with precision and integrity,” said Nunnink. “That independence is a big reason clients trust us, but we also benefit from being part of the larger Partner family companies that performs some level of diligence on 1 in every 4 commercial real estate transactions in America.”

Clients consistently turn to Partner Valuation Advisors when timing is critical, and precision is non-negotiable, especially in competitive sale environments. They rely on valuations that stand up to the toughest scrutiny, whether from investment committees, regulators, or rating agencies. And with a front-row seat to market activity, Partner delivers insights ahead of the curve, often before trends make headlines. The firm’s proprietary processes and national platform allow it to deliver efficiently across asset types and geographies, while maintaining a high-touch, relationship-driven approach.

“We’re not just delivering a number, we’re delivering execution confidence,” said Enloe. “Our clients know they can rely on us to get it right the first time.”

The firm’s data and insights are increasingly being used not just to support transactions, but to forecast trends and guide strategy across the CRE ecosystem. From institutional investors repositioning portfolios to lenders underwriting complex assets, Partner’s work is helping clients make smarter, faster, and more defensible decisions.

In a CRE market defined by volatile bond yields, shifting asset values, and capital constraints, a modern valuation approach has become more than a necessary compliance step, it’s a strategic advantage.

“We’re seeing clients lean on us earlier and more often throughout their equity and debt investment cycles,” said Nunnink. “They want to know what’s real, what’s risky, and where the values of their assets within the market are headed.”

That demand has fueled Partner’s rapid growth, and its reputation as a barometer for broader market activity. The firm’s client engagements often precede major transaction volume, giving it a unique role as a leading indicator for the industry.

Looking ahead, Partner Valuation Advisors is doubling down on its commitment to technology, analytics, and talent, evidenced by the recent additions of industry veterans Michael Robinson, MRICS, who supports Miami and New York, and James Graber, MAI, based in Dallas and covering the South Central Region. These strategic hires are part of a broader effort to scale the firm’s impact.

At the same time, Partner is actively exploring new tools to enhance data transparency, streamline reporting, and deliver even more actionable insights to clients. “We’re just getting started,” said Nunnink. “Our goal is to be the most trusted name in CRE valuation in the U.S."

For clients navigating today’s CRE landscape, Partner Valuation Advisors offers more than just a valuation, it offers clarity, confidence, and a competitive edge in the valuation process. And in a market where execution is key, that’s a value proposition that’s hard to ignore.

About Partner Valuation Advisors

Partner Valuation Advisors, LLC is a national commercial real estate valuation advisory firm that ranks as a top 10 appraisal firm. Partner Valuation Advisors has more than 100 valuation professionals nationally. Partner Valuation Advisors is led by Brandon Nunnink, CFA, and Eric L. Enloe, MAI, CRE, FRICS. Team members hold appraisal licenses in all 50 states and the firm has offices in Austin, Baltimore, Boise, Boston, Buffalo, Charlotte, Chicago, Cincinnati, Cleveland, Dallas, Denver, Gainesville, Grand Rapids, Houston, Indianapolis, Jacksonville, Kansas City, Knoxville, Los Angeles, Miami, Milwaukee, Mobile, Naples, New York, Northern New Jersey, Oklahoma City, Philadelphia, Phoenix, Portland, Raleigh, San Diego, Seattle, St. George, St. Louis, Tulsa, and Washington, D.C. Partner Valuation Advisors performs commercial real estate valuations nationally for investors, lenders, and real estate occupiers and is an affiliate company of Partner Engineering and Science, Inc. Please visit us online at www.PartnerVal.com.

Partner Valuation Advisors Welcome Vytas Norusis as Executive Vice President in Chicago

Industry Veteran to Lead National IOS Practice Group, Expanding Partner’s Institutional Expertise

Chicago, IL – October 1, 2025 – Partner Valuation Advisors is proud to announce the addition of Vytas Norusis, MAI, as Executive Vice President, based in Chicago. With over a decade of experience in industrial valuation and a deep specialization in the Industrial Outdoor Storage (IOS) sector, Norusis brings unmatched expertise and institutional credibility to Partner’s growing national platform.

In his new role, Norusis will serve as the National Lead for Partner’s IOS Practice Group, guiding strategy and execution across markets.

Norusis brings a track record of appraising over $10 billion in industrial assets and has overseen the valuation of 10+ national IOS portfolios in the past year alone—totaling more than 200 assets across the country. His thought leadership in the IOS space has helped shape market understanding of this emerging asset class.

“Vytas is one of the most experienced IOS valuation professionals in the country,” said Joe Miller, MAI, MRICS, Managing Director at Partner Valuation Advisors. “His track record, relationships, and insights will be instrumental as we launch our dedicated IOS practice group to serve institutional clients nationwide.”

Norusis has appraised some of the earliest acquisitions by major IOS operators dating back to 2016 and has advised many of the largest ownership groups and institutions active in the space.

“I’ve been immersed in the IOS sector for nearly a decade,” said Norusis. “Partner’s platform, speed, and independence make it the ideal place to build a best-in-class IOS valuation practice.”

With the launch of our dedicated IOS Practice Group, Partner Valuation Advisors reaffirms its commitment to delivering specialized, data-driven valuation services tailored to the needs of institutional clients. We invite you to connect with our team to learn how our expertise can support your next transaction.

About Partner Valuation Advisors

Partner Valuation Advisors, LLC is a national commercial real estate valuation advisory firm that ranks as a top 10 appraisal firm. Partner Valuation Advisors has more than 100 valuation professionals nationally. Partner Valuation Advisors is led by Brandon Nunnink, CFA, and Eric L. Enloe, MAI, CRE, FRICS. Team members hold appraisal licenses in all 50 states and the firm has offices in Austin, Baltimore, Boise, Boston, Buffalo, Charlotte, Chicago, Cincinnati, Cleveland, Dallas, Denver, Gainesville, Grand Rapids, Houston, Indianapolis, Jacksonville, Kansas City, Knoxville, Los Angeles, Miami, Milwaukee, Mobile, Naples, New York, Northern New Jersey, Oklahoma City, Philadelphia, Phoenix, Portland, Raleigh, San Diego, Seattle, St. George, St. Louis, Tulsa, and Washington, D.C. Partner Valuation Advisors performs commercial real estate valuations nationally for investors, lenders, and real estate occupiers and is an affiliate company of Partner Engineering and Science, Inc. Please visit us online at www.PartnerVal.com.