Colin Cornell is an associate director at Stan Johnson Co.

Dialysis clinics, dental clinics, and urgent care centers have always been the closest thing to a commodity asset within the healthcare net lease sector, but in the past few years, dialysis product has separated itself from the pack. Although there has been some consolidation within the dental and urgent care spaces, those sectors remain fragmented. The dialysis industry, however, features two primary players and one secondary operator – the two behemoths in this space are DaVita Kidney Care and Fresenius Medical Care, with U.S. Renal Care being the smaller, yet still significant, third operator. By looking at the development strategies employed by these tenants, along with what differentiates the three primary operators, we will begin to see what has driven investor interest in this space and what variables ultimately affect the valuation of a clinic.