Over 80% of healthcare practices lease their office space. The location, economics and impression their office makes on patients are significant factors in patient referrals and return visits, especially in a competitive market. Several aspects of a lease can even impact patient care and staff morale. Avoiding pitfalls in your office lease doesn’t happen by chance. It takes an intentional game plan executed by a savvy agent who can position you for success. With that in mind, here are a few common pitfalls you should avoid:
Pitfall #1: Lack of market knowledge
To achieve the best possible terms, you must be familiar with all options that exist in your area. This market knowledge includes available vacancies, recently completed transactions and spaces coming available soon. This is critical information that a local commercial real estate professional can provide to you at no charge. It would be extremely difficult for a healthcare provider, attorney or an out-of-town “lease negotiator” to know this information as it is not public record, as many completed transactions or “comps” are not listed in online databases. Having this market knowledge will help you find the best space and ensure you are not over-paying when evaluating your property options.
As a healthcare tenant or buyer, there are many layers of due-diligence needed to evaluate property options that are not required by traditional office or retail tenants. This creates a greater need to ensure you hire a healthcare specific real estate agent that fully understands your industry and specialty.
The average commercial broker may perform one or two healthcare transactions in their entire career. When considering that the difference between a properly and poorly negotiated transaction can benefit or cost a healthcare practice several hundred thousand dollars over a ten-year period, hiring an agent that only represents healthcare professionals as tenants or buyers becomes even more clear.
Hiring the most qualified representation will allow you to obtain the most accurate market knowledge needed to capitalize on the best terms possible.
Check back soon for the part 2 of this blog to learn more about the next pitfall to avoid.
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