Every commercial real estate transaction has an ideal time frame to begin the process. Most healthcare professionals understand that opening a new office or relocating an office doesn’t happen overnight, but the majority of professionals are not aware of the ideal time frames for each type of transaction. Different types of problems arise when starting a transaction too early or too late, and both need to be avoided.
If you start the process too early, it creates a scenario where you waste valuable time looking at properties, evaluating options, working with lenders and other members of your team, only to find that landlords or sellers will not negotiate with you yet.
Most landlords and sellers will not take their spaces off the market for extended periods of time while waiting for the tenant or buyer to become ready to transact or occupy the space. If a landlord is willing to negotiate sooner than necessary, they will not offer you even close to their best terms that could be achieved, since they would lose income holding a space vacant for an extended period of time.
On the other hand, if they do put forth reasonable terms, it is predicated upon you moving forward immediately, which can leave you stuck paying for a space you can’t readily occupy or paying unnecessary rent on your former space if you leave early.
Check back soon for parts 2 and 3 to learn more about what happens when you start too late and what your ideal time frame should be.
For more information about how you can maximize your profitability through your next real estate transaction, visit our FAQ page or click the following link to start a conversation with an expert agent representing healthcare providers in your area: Find an Agent