Multi-site healthcare organizations operate in a demanding world, balancing patient care, operational efficiencies, and navigating the complexities of real estate. While securing locations might seem straightforward, navigating this process without dedicated representation can expose your organization to hidden pitfalls and missed opportunities. Here’s why healthcare organizations need a seasoned advocate in their corner: 1. Unmasking the Complexities Navigating lease proposals, real estate jargon, and landlord negotiations can be overwhelming, especially when dealing with diverse portfolios a ..read more

Healthcare professionals are becoming increasingly more educated on the importance of having a real estate strategy to maintain and increase profitability. This is significantly important considering real estate is the second highest expense behind payroll for most healthcare practices. You might say, “Great, but how much more is it going to cost to hire representation to ensure I am protected and achieve the most favorable terms possible?”  If you are a tenant or buyer (as opposed to a landlord or seller who is interested in leasing or selling their property), the answer should always be ..read more

More than 80 percent of healthcare practices lease their office space. That means that annually, more lease renewals occur than any other commercial real estate transaction. And statistically, healthcare providers lose more money in lease renewals than any other transaction in commercial real estate. However, what most healthcare providers don’t know is that their lease renewal is negotiable, even if the renewal terms are specified in the current lease. (A landlord who says you can’t renegotiate those terms is usually doing so to make more money.) Because healthcare real estate is typically th ..read more

Real estate is the second highest expense behind payroll for most healthcare practices. The benefits of capitalizing during lease negotiations can include a healthy raise through increased profitability, reduced debt, a nicer office and more. On the contrary, if negotiations are not handled properly, the results can be decreased profitability; resulting in the need to produce tens to hundreds of thousands of additional dollars just to pay the same bills that should have cost dramatically less. While there are many key concepts and strategies you should always do prior to and during any lease o ..read more

When it comes to signing a commercial lease, there are many factors to consider to ensure a favorable, and financially sound agreement. One particular aspect that healthcare providers often overlook, that  should be approached with caution, is the inclusion of CPI (Consumer Price Index) escalators. While landlords may make a strong case as to why you should include a CPI clause in your lease, it is crucial for tenants to understand the potential drawbacks and implications associated with them. In this article, we will explore what CPI is, why landlords favor CPI escalators, and why it’s i ..read more

Understanding the market, the correct timing and comparable business deal points positions you and your agent to begin the process with a high-level of anticipation for success. However, any preparation will quickly amount to nothing if you do not have a focused negotiation strategy. The key to an effective negotiation posture is most clearly found when you have multiple options on the table and are willing to pursue those options. One of the first questions a landlord will ask its broker is whether the tenant has professional representation. If the answer is no, they will ask if the tenant ap ..read more

There are several critical factors often overlooked by healthcare providers in the attempt to save their practice money by paying lower rent.  One of those factors that could make paying a higher lease rate a better financial decision is a property’s location. Demographics and neighboring tenants are two importance factors to consider when choosing your location. If you have ever worked with a commercial real estate agent, you have likely heard them say, “location, location, location.” This is the most cliché term in real estate for a reason. Location is one of the most important factors ..read more

There are many forms of commercial real estate leases, due to the fact that there is not a universal lease template or standard form at a state or national level.  Unless you are dealing with the same landlord on the same property, the odds of seeing a lease agreement that is even relatively similar to a prior lease agreement is very rare. Even the length of a lease varies widely; and shorter is not always better. All this makes understanding the terms and conditions of a lease agreement even more vital. One of the most common lease structures you will see is called a triple net lease (or NNN ..read more

For healthcare practices, choosing where and what type of property to locate your business in is a decision that will impact your bottom line, earning potential, referrals, doctor-patient relationships and interactions, and more.  When deciding on a practice location, many healthcare professionals examine two primary commercial real estate options closely: the retail center and the standard or medical office building. If you are looking for a space dedicated exclusively to healthcare tenants, an office building might be for you. What about convenient retail locations with proximity to sho ..read more

Everyone wants to feel like they’re getting a good deal. But most of the time, landlords and listing agents have the upper hand. That’s especially true in lease negotiations. So many variables affect the success of healthcare real estate negotiations, including timing, market conditions, supply and demand, tenant’s needs, proper representation, and more. And all of those directly affect your bottom line. Having represented thousands of healthcare professionals, we know the mistakes to avoid. From incorrect timing and lack of leverage to placing too much trust in your landlord—here’s what not ..read more