Are you thinking about starting a veterinary practice soon and wonder where might be a great fit for you? In this episode of Finding MOB, I’m going to show you what to look out for when you’re evaluating a location and the landlord for your veterinary practice. We’ll look at the example of one of my real-life clients and find out how we got them a rental price within their budget.
Finding A Space For Your Practice
Most landlords aren’t going to know the ins and outs of your veterinary business. They likely won’t understand your business model, what you’re looking to do, and what it’s going to take for you to be successful. As healthcare experts in the commercial real estate industry, we want to help our tenants bridge the gap between you and the landlord.
One of the biggest questions for veterinarians opening up their first or second location is, “Where should I locate my business to be the most successful?” There are some things you’ll want to look out for when evaluating both a location and landlord for your veterinary practice. This is important because while you may have your heart set on one location, there may be things that you’re overlooking.
Important Things To Consider
There are important things to consider when choosing your location and landlord. What’s your business model? How will rising interest rates affect you? Why will you be successful there? Will the property landlord accept your use?
Additionally, is there a back entrance or green space for pets coming in and out of the office? What licenses or accreditations can you show the landlord? What are the competing businesses nearby? What are the demographics of the surrounding area? What about noise control and thinking about your neighbors?
Some of these questions may be unique to your veterinary business, and some of these are common questions you should ask when opening up a new location. For example, some landlords want to see that you have or are working towards an AHA accreditation or that you have a pre-approved loan.
A Case Study
As for rising interest rates, it’s important to know which bank can give you the best loan package. To put this in context, I want to share with you what can happen when opening up a veterinary practice. We had a client where we found a location that had green space and even private parking behind it.
However, before going to lease, we found out from the landlord and the legal team that an existing tenant had a conflict written into their lease that prevented a veterinarian user from coming into the strip mall. We then had to go back to the drawing board. We found a better location with better demographics, located on a main road.
Using our expertise and knowing that the new market rent in the new location would likely be out of our client’s budget, we employed a different kind of strategy. With that strategy, we were able to get our client two more months of rent abatement, $50,000 more in TI, and get a rent that was within their budget.
I’m Here To Help
Now you know some of the challenges and what to look for when you’re opening up your veterinary practice. If you have any questions about your next move or opening up your first medical office space, please feel free to contact me and I’ll be happy to help.
Don’t forget to subscribe to my channel so you never miss an episode of Finding MOB, my show where we make you an insider when it comes to owning or leasing health care office space property. Stay tuned to see what I feature next!