Leasing Medical Office Space… Don’t Make These Common Mistakes
Before signing a new lease, make sure you’ve negotiated for terms you’re happy with and that will protect you in case something happens.
Signing a long term lease without negotiating any allowances
Landlords love it when renters sign a long-term lease because they don’t have to worry about getting it rented out again for that duration of time. They avoid costs like cleaning, advertising the space, and rent lost during new lease acquisition.
With that in mind, negotiate some perks in exchange for signing your long-term lease like free rent for a period of time while you get moved in or improvements to space at the landlord’s expense.
Push for exclusivity. While it’s not always an option – especially in larger office buildings – many healthcare professionals can and should ask a landlord for exclusivity during negotiations.
Relying on your landlord’s word only
While most landlords have the best of intentions, don’t rely on their word only. For example, they may indicate certain fees are included in your rent, but then you get a bill in the mail.
Make sure to get everything in writing so it’s clearly stated and there is no confusion if a dispute crops up. Pay attention to things like CAM fees, administration fees, or capital expenditures.
Using inexperienced agents
Just because you have representation doesn’t mean they know how to get the best deal for you. Inexperienced agents may help you through the terminology and contract terms but fall short of going the extra mile when it comes to pointing out certain conditions you haven’t thought about.
The biggest mistake we see is when a business hires a residential realtor to negotiate a commercial lease. That’s like hiring a mechanic to do open heart surgery.
Find an agent who has helped others through a similar process with valid testimonials about their proven track record for handling commercial leases.
Negotiating out of emotion
When it comes to business, leave the emotions out of it. You may come across a location and get attached to it before the lease is signed. Avoid thinking that your medical practice’s success depends on a certain location as it can lead you to accept terms that aren’t the best.
On another note, you may want to get your practice up and running as soon as possible. Avoid negotiating terms too quickly because you feel pressured to find a space as soon as possible. This type of thinking can lead you to agree to terms you don’t fully understand or aren’t comfortable with.
Make sure the space fits your need. Many healthcare professionals fall into the trap of leasing a space that doesn’t match their customer needs (i.e. inadequate waiting room space). Your layout should be functional both for the practice and its patients.
Study your location needs. Proximity to patient base, hospitals, other doctors, and highway access; as well as building visibility, parking and relationships with neighboring practices all have an important role to play in the future welfare of your business.
These are just a few of the concerns that medical practitioners should consider when leasing office space. For additional information feel free to contact us.
Lease the Perfect Doctor’s Office
Finding the ideal location for your medical office has never been easier. With the help of Commercial Lease Locators, we can guide you through the process from start to finish and answer all your questions.
Contact us through the easy online form below or call 512-920-6270 to speak to an experienced commercial real estate agent today.
Tell us the type of space you’re looking for, the size and the ideal location to get started.
All our agents have the experience it takes to negotiate excellent terms and conditions for a lease that will work for your medical practice.
Contact Commercial Lease Locators and let us negotiate the best deal on your behalf!
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If you’re looking for additional resources for your medical practice than take a look at the Texas Medical Association. They have a great resource page!