To rent or to purchase. That is the question facing physicians, doctors, and other health care professionals. Initial costs and potential for growth must both be considered. Naturally, the most important factor in purchasing or leasing medical real estate is what you can afford. Read here for more information on Planning a New Medical Office, including how to best deal with a broker that best suits your unique situation.
MedScape Today: http://www.medscape.com/viewarticle/554115_2
A new physician or doctor entering an established practice has a lot to consider when it comes to real estate. Helping to make the process of leasing, partnering, and/or buying medical real estate is Jeffrey B. Sansweet, Esq of the Physicians News Digest:
Thinking about leasing a medical office? Victoria Elliott from American Medical News says now is the time to act. Due to the real estate downturn, many tenants are finding that less competition and more space means lower rates. If you currently rent, now may also be the time to renegotiate the terms of your lease. Plus, if you play your cards right, a few luxuries and perks might get thrown in.
Those of you with an eyebrow raised might be wondering what led the current climate of the medical real estate market. Skeptics need not worry, because the issue is fairly clear-cut: before the downturn, there was an abundance of real estate developed; now, rents are down and vacancies are up. This type of market means that owners of medical real estate may have to get creative to keep old tenants are lure new ones. Many landlords are offering incentives such as a few free months or golf club memberships. These perks avoid devaluation of the real estate and show the tenant that their business is important.
What does the future hold for the medical real estate market? Predictions are that the average price will continue to go down, at least in the immediate future. While 10.1 million square feet of medical office space are set to be completed by the end of 2009, that number should reduce by about 3 million in 2010.
American Hospital Review http://www.ama-assn.org/amednews/2009/12/14/bil21214.htm
Increasingly, medical professionals and investors are finding that leasing office space can be mutually beneficial. First, by opting out of ownership of the property, the physicians and staff are able to receive substantial captial in exchange. This money can be used for growth or improvements, while also paying off tenant fees. Second, the medical staff can choose to retain or forgo responsibilities such as utilities and maintenance, depending upon the type of lease. As for the investor, medical real estate presents a unique opportunity, as the healthcare sector remains largely immune to trying economic times. Hospital Review Magazine addresses the benefits and potential risks of such a scenario in an article entitled "Investing in Medical Office Net Lease Properties":
