Healthpeak Properties

Component assessment and weights: Switching costs 85/100 (30% weight). On‑campus adjacency and clinical integration make migration costly and operationally risky for health systems; DOC’s outpatient portfolio is ~96% on‑/adjacent‑campus with 5.2‑year average remaining lease term that reinforces stickiness. Efficient scale 75/100 (25% weight).

The company is a top owner in key metros with barriers to entry and has internalized property management across large footprints, improving service and cost-to-serve. Intangibles 70/100 (20% weight). Long relationships and reputation with leading health systems and biopharma tenants support renewals and development access.

Cost advantage 65/100 (20% weight). Investment‑grade balance sheet and platform scale lower its capital costs versus smaller peers, though not uniquely so. Network effects 20/100 (5% weight). Real estate lacks classic network dynamics; benefits come from scale and relationships rather than user‑driven network externalities.

Weighted together this yields ~78. Key erosion risks: hospital system consolidation or distress that reduces campus demand, reimbursement pressure, and prolonged softness in life science leasing; mitigating factors include diversified tenant mix and constrained supply in core clusters.