University of Michigan Health (Michigan Medicine) Credit Rating & NNN Cap Rate Analysis

University of Michigan Health Business Overview

University of Michigan Health is the academic medical center of the University of Michigan in Ann Arbor and, with the U-M Medical School, makes up Michigan Medicine. Sparrow Health System in Lansing joined it effective April 1, 2023; at that time, University of Michigan Health described itself as a $7 billion organization overseeing more than 200 care sites across Michigan. Its regional systems include UM Health-Sparrow and UM Health-West.

University of Michigan Health Credit Profile

The general revenue bonds of the Regents of the University of Michigan are rated AAA/Aaa in our database. Those ratings apply to a lease only when the Regents sign or guarantee it. Leases signed by a regional system such as UM Health-Sparrow or UM Health-West, a physician group or a joint venture may not carry the Regents’ credit, so confirm the lease obligor and any guarantee on every property.

A strong system can still close, consolidate or relocate individual clinics as its strategy changes. The rating describes the system’s ability to pay its obligations, not a promise to keep any particular site open, so underwrite each property’s role in the local network and its re-use potential.

Ratings come from our tenant ratings database, which records the source of each rating. A rating at or above BBB‑/Baa3 is investment grade; see the investment grade guide.

Source: S&P Global Ratings AAA, as of October 8, 2026; Moody’s Aaa, as of October 8, 2026. Ratings checked October 8, 2026.

University of Michigan Health NNN Cap Rates

Live asking cap rates for University of Michigan Health and comparable tenants:

Active listings InvestmentGrade.com tracks with an asking cap rate (stated in the listing, or computed from its stated income and price when no rate is stated), listings last observed October 12, 2026. Asking cap rates are not closed-sale cap rates. The middle half is the range from the 25th to the 75th percentile of listings. The 10-year Treasury yield is 5.24% as of October 1, 2026 (FRED series DGS10). Ratings are the agency ratings in our ratings database for the entity shown, which may be a parent company; the rating type (for example issuer, senior unsecured debt, long-term debt or revenue bond ratings) varies by company and is shown on each tenant page. A rating applies to a lease only if the rated entity signs or guarantees it, so confirm the tenant and any guarantor in the lease. n/a means no verified rating is on file. Not shown because fewer than 3 active listings with a published cap rate were observed: University of Michigan Health, Oak Street Health.

We do not track enough University of Michigan Health listings with a published cap rate to show a median. The table shows healthcare tenants with enough listings. Compare an offering with recent sales leased to rated health systems with similar terms.

What to Check in a University of Michigan Health Lease

• Obligor: whether the lease is signed by the rated system, a hospital subsidiary, an affiliated physician group or a joint venture, and whether the rated parent guarantees it.
• Term and rent: remaining term, renewal options and the rent schedule; rent increases vary by lease.
• Site role: whether the building is on or near a hospital campus and how central it is to the system’s local network; systems can close, consolidate or relocate individual sites.
• Lease type: net, modified gross or full service; who pays for the roof, structure and building systems.
• Re-use: how much of the medical build-out another provider could use.

Pros and Cons

Sources: UM Health-Sparrow announcement “U-M Health, Sparrow join to deliver world class healthcare” (April 3, 2023); ratings from InvestmentGrade.com’s ratings database.