Keeping a watch on your medical practice’s bottom line is vital for the viability of your business. There are many factors that can impact your profitability, but real estate is one of the biggest. In fact, it’s usually the second-largest expense your business will face. For that reason, getting the size, location, and usage of your practice just right is a delicate balance – and can be the difference between a practice that gets by and one that thrives. Here’s what to consider.
Right Size and Location
Location is everything, but it comes at a premium. You want your practice to be centrally located with excellent visibility in an area with high demand for your services. But the more your practice checks all of those boxes, the more the price tag will climb – especially if you need a large or specialized space. Before signing on for a lease, weigh the costs against the benefits of that visibility and strategic location. A smaller clinic with a great location where some services are performed off-site or through a neighboring business – such as a pharmacy – might offer the right balance. If you serve a lot of patients through telehealth, perhaps being located on a major thoroughfare is less of a concern. Or if your clinic is part of a larger health ecosystem, an office in a mixed-use space geared toward healthcare might be the way to go.
Smart Use of Your Space
With costs climbing, every inch of your space has to be doing its job. If it’s been a while since you refurbished or reconfigured your practice, now is the time to consider things like usage and flow. Post-pandemic, clinics are rethinking things like communal waiting rooms or narrow, high-traffic areas, with many adopting new approaches and workflows that allow these spaces to be repurposed for other uses. Assess which areas are low-use and whether they can provide better ROI by being transformed into a different type of space or even rented out to other clinicians. This can be a good approach if your long-term plans are to “grow into” your space, but you’re not quite there yet.
The Terms of Your Lease
This is a big one. Given the long-term nature of a typical commercial lease, healthcare professionals will probably only negotiate a few leases during their careers. For landlords, however, that negotiation is the basis of their entire business. If your lease is coming up for renewal, or you’re looking to sign a new lease, partner with an agent such as the experts at GZ to ensure that you’re negotiating deal terms that are in your best interests. Having a pro on your side can mean the difference between leaving tens of thousands of dollars on the table – or having that extra money to reinvest in your practice.
GZ Can Help Take You to Profitability
If you’re looking to shore up your bottom line by taking a smart approach to medical real estate, talk to the team at GZ. We specialize in medical realty and can help you identify the space that’s right for your needs – and negotiate a lease or purchase terms that will work in your favor. Whether you’re looking to expand, downsize, move, or renew your lease, we’ve got your back.