Alternatives for Physicians When Facing a Lease Negotiation or Renewal

 

By Todd Perman, CCIM

Professional buyer and tenant representation is very cost effective and advantageous for healthcare professionals.  A healthcare real estate advisor’s negotiating skills, market knowledge, vendor contacts, and transaction experience can save you money and time and prevent costly mistakes.  In addition, property owners and their agents expect that experienced business people like doctors will have professional representation.  Consequently, they assume a certain level of knowledge of the market and the transaction  process.  Best of all, you pay nothing for the service ~ the sellers’ agents share their fee with the healthcare real estate advisor when they represent you. 

One of the key benefits a healthcare real estate advisor brings to the process is an understanding of the importance of timing. While clients can occasionally move offices and make 1031 investments in just a few weeks, they typically find that more time means more choices, and the better the options and economics that can be found and negotiated. Generally, we recommend that you engage your healthcare real estate advisor twelve months in advance to maximize your benefits, but at a minimum start working with a healthcare real estate advisor six months prior to your deadline.

The process takes longer than you might expect. To find the best property for you or to negotiate the best renewal possible requires time and a process. Your healthcare real estate advisor should conduct an analysis of your needs, review the choices available, tour possible spaces, negotiate with property owners, plan your space, and estimate space build-out costs. Once the advisor has found a suitable space that you want, he should help coordinate permits, construction, financing, inspections and other matters. As each step takes some time to be done properly, your advisor should establish a timeline and a process as soon as he knows your goals and the details of the property you want, so you know what to expect.

You don’t have the time or expertise to go through this process alone; you have a busy practice to run.  For best results, engage a healthcare real estate advisor to guide you through each step, so that you can continue to concentrate on seeing patients and building your practice.  Whether you need help with office leasing, an office purchase or real estate investments, ensure your best interests are diligently represented by working with a healthcare real estate advisor.

Todd Perman, CCIM is a principal with Healthcare Real Estate Advisors, Inc. a Division of Lynx Real Estate, Inc. The firm specializes in representing physicians and dentists to control their occupancy costs or invest in their facilities. For more information, contact Todd and his team at 404-477-2044, todd@myhrea.com or www.PhysiciansAdvocate.com