Is your agent asking you basic or obvious questions about your practice?
5 Things Every Doctor Should Know When Choosing Their Commercial Real Estate Agent
An expert commercial real estate agent should have a firm understanding of your industry and be aware of the key requirements that can affect your practice. Likewise, they shouldn’t be asking you questions that you would expect them to advise you on.
You should be skeptical of your agent’s skillset if they ask questions like the following:
- What price do you want to offer?
- Do you think this price is fair?
- Would this space or building make sense for your practice?
- How long does your construction typically take?
- What will it cost to design or build out this space?
Questions like these are red flags that communicate they probably don’t know your industry or the needs of your practice. Worse yet, it may also communicate that your agent doesn’t know how to properly evaluate your top options and truly guide you. This would be the equivalent of you asking a patient to diagnose themselves or put together their own treatment plan.
An experienced commercial real estate agent that specializes in representing healthcare practices should be able to confidently advise you on the market, asking prices, concessions, negotiable terms and more… not vice versa. Additionally, your agent should have a thorough understanding of the unique needs of healthcare offices, including electrical and mechanical specifications, technology and more. These items need to be addressed up front or they can become very costly to remedy.
Also, if your agent doesn’t understand your business and industry, they can’t adequately represent your position to the landlord as a valued tenant who is worth investing in to make a deal. Correct representation is key to getting a landlord to stretch further for your tenancy and the terms you need to maximize the opportunity.
A chiropractor shouldn’t be extracting a tooth, an orthopedic surgeon shouldn’t be delivering a baby; any more than a landlord or listing agent, without healthcare tenant and buyer experience, shouldn’t be representing a healthcare practice.
Many healthcare providers find themselves working with a patient or friend of the family who may be well-meaning, but who specializes in residential real estate instead of commercial real estate. Additionally, any agent who primarily works for sellers and landlords is always seeking the next ‘listing’ and will not be able to properly represent your practice’s interests.
Check back next week for question four in this series.