As the adage goes, “Timing is everything.” This applies to real estate as well, especially when you are searching for that perfect place for your medical practice to call home.
How do you know when to start? You don’t want to be the little piggy that went to the market too early or too late. Too early, and landlords or sellers may not negotiate with you yet, or they’ll expect you to be ready to move forward immediately. Too late, and things get real expensive real fast.
The reality is that most people underestimate how long it takes. Set yourself up for success by understanding how long different transactions take. Here’s a breakdown of timelines for the most common situations and how to navigate them.
You wouldn’t perform surgery on yourself, would you? Whether you’re negotiating a lease renewal or looking for a new space, believe it or not, you won’t save money by eliminating the middleman. In fact, you may cost your practice more.
Another thing to keep in mind is that there is a commission pool built into most lease deals comprised of rental funds. If you don’t hire a broker to represent you, the landlord’s broker or leasing agent will take the full commission. If you are represented, the fund is shared with your broker or agent. Either way, the commission comes from the pot, not your pocket.
After years of hard work, it’s time to expand. You’re a successful medical or dental practice and you’ve decided it’s time to lease new office space. Because it’s one of the largest expenses, choosing the right office space is a major decision that can impact your practice in multiple ways. The following five questions are a great place to start.
1. How much space do I need?
Having the wrong-sized space – either too big or too small – is the biggest pitfall. So, first, ask yourself if you’re downsizing or planning for continued growth. To assist in determining your current and future needs, you may want to enlist the services of an architect to help with your decision making. They will be able to evaluate your current office, gauge your likes and dislikes, and determine the inefficiencies that may occur from your current design. Just as important is choosing an architect that knows medical design and current practice trends and one that will understand your unique office flow.
Finding the right medical office space is a different process for every practice. Some choose to lease, some choose to buy. There is no right or wrong answer in either direction, it really boils down to your specific needs and comparing the pros and cons accordingly. With that said, it may be helpful to ask yourself a few questions and make a list of your comparisons. Let’s talk leasing first.
Although GZ makes every effort to ensure the accuracy and reliability of the data contained herein, GZ makes no guarantee, representation or warranty regarding the quality, accuracy, timeliness or completeness of the data.