As a veterinary practice owner, understanding the evolving landscape of the veterinary real estate market is critical for planning and capitalizing on new opportunities. In 2025, the market is shaped by trends that offer unique advantages for property owners, whether you’re looking to sell, expand, or enhance your facility.
Here are five trends and growth opportunities that can help maximize the value of your veterinary real estate in 2025.
1. Rising Demand for Veterinary Real Estate in the Broader Market
The veterinary real estate market is experiencing a surge in demand, driven by the increasing importance of pet care and the stability of veterinary properties as investments. Unlike traditional commercial real estate, veterinary facilities have proven resilient during economic fluctuations. This makes them highly attractive to a range of buyers, from individual investors to institutional funds.
This demand is reflected in the growth of the veterinary services industry in the U.S. market – which is expected to grow at a compound annual growth rate of 8.7% from 2023 to 2030 to reach USD 23.31 billion by 20301. Properties in high-growth areas with strong demographics and consistent client bases are particularly sought after, often commanding premium valuations.
For practice owners, this trend translates into opportunities to leverage your real estate as a strategic asset. If you’re considering selling, the heightened market interest can secure competitive offers, while those looking to expand or upgrade their facilities may find more favorable financing options. By staying informed about market trends, you can position your property for maximum returns and capitalize on the growing interest in veterinary real estate.
2. Leveraging Corporate Partnerships and REIT Programs
While the overall demand for veterinary properties is rising, corporate partnerships and Real Estate Investment Trusts (REITs) are creating a specialized wave of opportunities for veterinary practice owners.
REITs provide an innovative pathway for property owners. By entering a REIT program, your property becomes part of a professionally managed portfolio of veterinary real estate. This allows you to turn it into a hands-free investment while staying connected to its long-term value.
Turn your property into a hands-free investment
The Terravet REIT is committed to acquiring top-quartile, purpose-built veterinary real estate where the highest quality of veterinary care is delivered.
Corporate partnerships further bring the advantage of scale; often investing in technology, infrastructure, and operational improvements that benefit practice owners by creating more efficient and appealing facilities. This alignment can drive better client experiences while increasing the overall value of your property.
3. Emphasis on Pet-Friendly and Sustainable Design
The design and functionality of veterinary facilities are evolving to meet changing client preferences and operational needs. Features like dedicated pet areas, natural light, and eco-friendly materials are increasingly popular, reflecting a broader demand for pet-friendly and sustainable designs.
Energy-efficient upgrades, such as solar panels and modern HVAC systems, are gaining traction. These not only reduce operational costs but can also qualify for tax incentives, making them a smart investment for practice owners.
Incorporating pet-friendly and sustainable elements into your property enhances client satisfaction, strengthens your brand reputation, and increases the value of your real estate. As more clients prioritize environmentally responsible businesses, these design upgrades could give you a competitive edge.
4. Economic Factors Influencing Veterinary Real Estate Decisions
Economic variables such as interest rates and inflation are playing a key role in shaping real estate decisions in 2025. For veterinary practice owners, these factors influence everything from property financing to operational costs.
Veterinary service prices have risen by 8.24% over the past year, outpacing national inflation rates2. This highlights how rising costs for services and operational expenses can strain budgets. However, with interest rates showing signs of stabilization, now may be a good time to lock in fixed-rate financing for property purchases or expansions. Fixed rates provide predictability and protect against future rate hikes.
Owners with existing properties might also consider refinancing or sale-leaseback arrangements to unlock capital and reinvest in their practices.
By proactively navigating these economic dynamics, you can position your practice for long-term success and ensure that your real estate strategy aligns with your financial goals.
5. Adapting to Changing Pet Owner Behaviors
Shifts in pet owner spending are influencing veterinary practices and, by extension, the real estate they occupy. Recent analyses reveal a decline in spending on certain veterinary services, such as therapeutic diets, pharmaceuticals, and surgeries. Additionally, clinic visits and revenue have been trending downward since late 20233.
In this environment, practice owners must adapt to changing client expectations by strengthening engagement and diversifying their service offerings. Flexible clinic designs that accommodate evolving needs—such as wellness plans, preventive care spaces, or telehealth capabilities—can help you stay ahead of these trends.
Understanding pet owner behavior and responding with tailored services ensures your practice remains competitive while maximizing the utility and value of your real estate.
The Veterinary Real Estate Market: Conclusion
The veterinary real estate market in 2025 offers exciting growth opportunities for practice owners willing to adapt to market trends. Whether you’re looking to enhance your property, explore partnerships like REIT programs, or navigate economic challenges, understanding the current landscape is key to making strategic decisions for your veterinary real estate—now and into the future.
Considering selling your veterinary property? Find out what makes us different, and why you should choose us.
1 Grand View Research. U.S. Veterinarians Market Size, Share & Trends Analysis Report. https://www.grandviewresearch.com/industry-analysis/us-veterinarians-market.
2 American Veterinary Medical Association. Less Foot Traffic at Veterinary Practices Spells Declining Revenue. https://www.avma.org/news/less-foot-traffic-veterinary-practices-spells-declining-revenue.
3 Vetsource. New Veterinary White Paper Explores Impact of Pet Owner Trends in 2025. https://vetsource.com/blog/new-veterinary-white-paper-explores-impact-of-pet-owner-trends-in-2025.