Timing Your Next Real Estate Transaction
Most healthcare professionals understand that opening a new office or relocating an office doesn’t happen overnight. However, the majority of professionals are not aware of the ideal time-frames for each type of transaction and risk being too late.
When a transaction begins too late, an entirely new set of problems arise compared to starting too early.
Most people underestimate how long a commercial lease or purchase transaction takes. They liken it to buying a home or leasing an apartment, which unfortunately does not fit the commercial transaction timeline.
Identifying top options and negotiating a mutually agreeable deal can take several months. The legal process of reviewing contracts and finalizing details with lenders, architects and contractors can take months. Once that process is complete, working with equipment and technology providers comes next; which also takes months. This is followed by the build out process if renovations are required.
Depending on the size and scope of the project, you can build out a new space in 6 to 10 weeks. Prior to that there are several things you must do first; design the space, create engineered construction documents, submit for and receive permits and then start the build out. After construction, you need to leave time for installing furniture, fixtures, equipment, technology, final permitting and approvals, while leaving room for delays and change orders.
If you are relocating from a previous office and you don’t vacate your former space prior to the lease expiring, you’ll likely pay between 125 to 200% of your last month’s rent based on a provision found in most leases called “Holdover.” This allows the landlord to charge you a higher month-to-month lease rate as a penalty for not vacating a space or signing a new lease.
If you find yourself in this position, contact us at your soonest convenience and let us work on your behalf.
Check back soon for the final part 3 of this blog to learn more about your ideal timeframe.
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