The Condition of Your Medical Office Space
Could Paying Higher Rent Increase Your Profitability?
The last critical factor of this series that is often overlooked by healthcare providers in the attempt to save their practice money by paying lower rent is the condition of their medical office space.
The condition of a medical office space makes a large impact on the overall cost of a deal.
When was the building built or remodeled? When was the HVAC last replaced? Is there sufficient electrical service for your equipment and technology? Is the building up to code and ADA accessible? Has there been any recent roof leaks? What type of deferred maintenance is present? And the list goes on…
Any of these items could cost you thousands of dollars to remedy over the term of your tenancy. Whether the issue needs to be fixed on the front end, like installing new HVAC, or something else that adds up over time, like poor-energy efficiency, the extra costs of leasing an older space or poorly maintained property need to be carefully considered.
Paying a higher rent upfront to avoid the above costs should be thoroughly evaluated prior to committing to a new lease in order to determine potential expenses and liabilities over the long-run. You can make the most informed decision for your practice when all the cards are on the table and no stone is left unturned.
There is a significant amount of money on the line when it comes to your healthcare practice real estate, and the vast majority of it is negotiable. It is vitally important to consider more than just lease rate and length of the term when evaluating your real estate options. Often times, landlords are only willing to move slightly off the lease rate when they would be willing to give significantly more concessions. The best strategy to achieve maximum profitability with your commercial real estate needs is to have professional representation with every transaction you are involved in. One of the best parts is that as a tenant, your representation does not cost you anything as landlords and sellers pay real estate fees in commercial real estate; just like in residential real estate.
Beyond having professional representation, it is equally important you have an agent on your side who only works with healthcare tenants and buyers and does not represent landlords or sellers. You want someone who understands and specializes in healthcare and is only on your side of the transaction. An agent who understands the nuances of healthcare real estate can easily make a six-figure impact in your real estate negotiations. Additionally, having an expert agent who doesn’t have a single listing improves your ability to have a no conflicts of interest approach. Your agent’s specific strategy for maximizing your practices profitability through real estate should take all the guess-work out of the process and bring peace of mind in every commercial real estate transaction you are involved in.
To learn more about why it is so important to have expert representation, click the button below.
To receive a free, no-obligation evaluation of your current terms and/or available options, click the button below. When you do, complete the simple form and an expert broker will contact you right away.
Carr Healthcare Realty is the nation’s leading provider of commercial real estate services for healthcare tenants and buyers. Every year, thousands of healthcare practices trust Carr to achieve the most favorable terms on their lease and purchase negotiations. Carr’s team of experts assist with start-ups, lease renewals, expansions, relocations, additional offices, purchases, and practice transitions. Healthcare practices choose Carr to save them a substantial amount of time and money; while ensuring their interests are always first.