2. Finding A Broker
When medical practitioners are in the market for new space, they’re often tempted to go it alone without an experienced guide by their side.
Mostly, they make this mistake because they erroneously think they’re saving money. What medical professionals don’t know is that it doesn’t cost anything to hire a tenant rep who’ll have their best interests at heart and not the landlord’s interests.
If you do it by yourself, your lack of expertise could end up costing you thousands of dollars over time.
That’s why if you see a sign advertising dental office space on the side of a building, it’s best not to call that number. If you call, you’ll end up talking to the landlord’s broker, who has way more commercial real estate knowledge than you.
He’ll exploit that knowledge gap, which will put you at a disadvantage.
Another reason to hire a tenant rep is that with his extensive network of contacts, he’ll find you space you’d never be able to find on your own. And, he’ll walk you through all the mind-boggling jargon of the commercial real estate world, leaving you less overwhelmed.
Lastly, he’ll help you understand the market inside and out, so you’ll have the confidence to know what the going rate for space is. If you want to save yourself a lot of time, find a tenant rep here.
For many medical professionals, actually looking at potential office spaces is the most exciting part of the property-hunting journey. And if you're fortunate, you'll see the office space that's right for you early on.
If demand for medical space in the area you hope to practice in is high, there's going to more competition for fewer choices. This could make your journey to the office space of your dreams a longer one.
Time invested in your search will pay off in the end. This is because you'll know the market better, and you or your tenant rep can leverage this knowledge when it comes time for negotiations.
Once you've looked at enough possibilities, narrow them down to two or three in case one suddenly becomes unavailable.
The Importance of Location
There's more to an office space than just what's inside it. Location is equally important. Check out the population-to-professional ratio for the area you're interested in.
Of course, the fewer practitioners in the area you're looking at, the less competition there'll be.
Sometimes, professionals overpopulate an upscale area while scarcely considering the opportunities that lie just a couple of miles away in low income or middle-class neighborhoods.
Some practices are better off being close to hospitals because this creates the perception in the mind of patients that you're in a healthcare zone. This increases credibility. Other practices benefit from being in freestanding buildings that face the street. This increases visibility.
If you locate in a retail location like a strip mall, you'll be more visible. But the more visible you are, the more you'll pay in rent. Consider this a marketing expense and evaluate its ROI (return on investment) based on this.
If you're a specialist, you might want to be located near referring practices to make it easy for patients from these offices to find you.
If the rent is cheap, an out-of-the-way place might be tempting. But it won't be suitable for patients and employees who rely on public transportation.
Avoid the Landlord from Hell
Try not to end up with the landlord from hell. If you can, talk to current renters to see how quickly their landlord responds to complaints.
If you're able to, run a background check on your landlord. A bad landlord will only make your life miserable. Ask other tenants how often he's raised the rent in the past and by how much. If you find out the landlord has a history of unreasonably raising what tenants pay to lease their space, you might want to look elsewhere.
See if there's a grace period for paying the rent. Although you certainly won't be planning on paying it late, sometimes the unforeseen happens.
When looking at office space possibilities, the more questions you or your tenant rep can ask, the better. By doing so, you'll learn more about the history of the space, what the amenities are like, and its underlying condition.
No question is too silly or obscure.