lease review

Five Reasons to Review Your Medical Practice Office Lease


The office lease for your medical practice is one of your biggest overheads. Fortunately, although the terms of your contract may seem cut and dry, there’s always room for negotiation. And given the enormous shifts in the market due to COVID-19, you may have more leverage than usual. Here are some of the reasons you might want to review your lease.

Your Lease is Due to Expire

If your lease expires in the next year and a half, you’re in a position to negotiate terms that better suit your practice and its needs. Before approaching your landlord, undertake an audit of your practice’s office needs and research other buildings in your local market. This will give you a better sense of what terms you’ll benefit most from negotiating, as well as what you can reasonably expect to ask for.

You Cannot Afford Your Current Lease

COVID-19 has had an outsize impact on small practices. If you can no longer meet the terms of your current lease, it’s essential to review your options before you miss a payment. Speak with your landlord, a real estate specialist, or a financial advisor about a rent relief agreement, applicable financial assistance programs, or negotiating new payment terms. Your landlord may be sympathetic, given the impact of COVID-19 – it’s always in their interest to keep a good tenant.

Your Landlord Wants to Change Your Lease Terms

Be very cautious about agreeing to updated lease terms that haven’t been reviewed by a professional. Your landlord may propose terms that aren’t in your favor or that affect your ability to do business in the short- or long-term. Speak with a real estate expert or lawyer to ensure that any changes won’t negatively affect your practice.

Your Landlord is Asking About Your Financials

This may be happening for a few reasons. Your landlord might be refinancing, applying for a loan, or considering selling the building. They might also be thinking about raising your rent. If your landlord is inquiring about your practice’s financials, consider bringing in an experienced commercial realtor to help you get the lay of the land regarding your lease.

The New Year is Approaching

The New Year is always a good time to review your lease, take stock, and see whether you may be able to negotiate more favorable terms for your medical practice. Given the significant economic effects of COVID, your landlord might be amenable to making changes to your lease going into the new financial year – especially if they mean keeping a valuable tenant.

If you need help reviewing your medical practice lease, negotiating more beneficial terms, or requesting rent relief, speak to the experts at GZ Medical Realty. We specialize in medical, commercial real estate and can advise you about your best options regarding your current lease – or even a new one.