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
No comments:
Post a Comment