Are you moving your medical office space and wonder if it’s wise to do it all yourself without an agent? In this episode of Finding MOB, I’m going to show you exactly what you need to know about leasing a medical office space. I’ll give you a clear example of how making this move blindly or without guidance can easily make this one of the most expensive moves in your career.
Working With An Agent
If you’re thinking of relocating medical office space, you’ll want to be sure you know about all that’s involved. To do so, it’s important to have a professional on your side. For example, our company has looked over thousands of healthcare deals, and there’s only a handful of those that we can’t add value to.
Additionally, the value added is only money savings. This doesn’t even consider the time saved when you work with a professional. This is important because the decisions you make now are going to impact how much you’re paying in the future.
Asking The Right Questions
One of the biggest questions I get is, ‘Why do I need somebody to represent me in a real estate transaction?’ The first reason this is important is that relocating medical office space is unlike any other type of move. For example, you have to think about proximity to home and work. Are you going to lose clients? What’s the right budget? Do I want to be in retail, or do I want to be in office?
There are even more questions you need to find answers to. What incentives are offered—including tenant improvements, free rent, and market rate? Do I need to be in a medical building? How’s parking, and how will that affect my patients? Is your practice better suited in the city or in the suburbs?
Diagnose The Situation
Now that you know why information is important in relocating your medical office space, I want to share with you how to diagnose the situation. This will allow you to make a more educated decision.
First and foremost, hire an agent. It doesn’t have to be me; just make sure you hire somebody you like and trust. Their job is to find properties that work for you, negotiate a market deal, and get you in your office on time. Most importantly, the agent is the go-to person to get you in the medical office of your dreams.
The best part of working with an agent is that you don’t have to pay ten reps for representation. Landlords will pay our fee from a separate set of funds from the transaction. It has nothing to do with the terms of the deal; it’s just the cost of doing business for the landlord.
A Case Study
Hiring a professional for your relocation is not only a big time-saving decision but also a big financial decision. I was working with a client that we had worked with 10 years ago. They were now looking to grow into a bigger space. He could only be so far from his office and wanted more visibility and a newer building.
We found our client two competitive choices. On one of the choices, the landlord was from out of town. We knew from what he was offering that it was not the market rate or best deal for our client, especially given how much a healthcare build-out can cost.
In this example, the space was 3,000 square feet. Given the initial freeze we put on escalations, the rental market difference, and the tenant improvement difference over those 10 years, our client will save over $349,000. That’s money back in my client’s pocket.
Finding Your New Space
I hope this helped you understand why it’s so important to hire an agent for your next medical or dental office space relocation. If you want to discuss your next move, please feel free to reach out to me all and I’d be happy to connect with you.
Don’t forget to subscribe to my channel so you never miss an episode of Finding MOB, my show all about the pros and cons of owning and leasing medical office space property. Stay tuned to see what I feature next!