Common Blunders When Negotiating Medical Office Space
In recent years, the medical industry has started a trend of moving their offices to areas where patients live to better serve them. Due to the strict regulations that the medical field must face, this can become complex. With this shift, clients will have more convenient access to their doctors. In order to avoid costly mistakes, involving professionals who have experience in medical leasing will be important for landlords and physicians to do. The following outlines some important things to avoid when searching for office space in the medical field.
- Not Looking at the Lease Closely Enough
- There are a number of special leasing issues that will need to be put in place when it comes to medical facilities accessing space. This is because they:
- Use hazardous materials
- Generate Biomedical Waste
- Require Improvements
- Require secure facilities to protect the confidentiality of their patient information
- A medical practice may need to change or remove improvements made to the space and retrofit the space to fit their needs.
- Triple Net, Double, Net Lease (NNN): is the best to to make sure that you can operate to your full extent by allowing you to control you common area maintenance expenses, keeping them separate from your base payment.
- Single Tenant Net Leases (STNL): Will protect you from paying more than your share of the expenses by becoming the sole tenant of a building. These are preferred by the medical profession as they often need more than the average amount of utilities and may be open outside of normal business hours.
- Lack of Awareness Regarding Patient Demographics
- The locations of a medical practice can greatly impact business.
- Checking with professionals will be important to make sure that the patient demographic and client base fits their areas of expertise.
- In order for your practice to be financially successful, the location and visibility of the site is important.
- A real estate profession should be able to provide physicians with information regarding the demographic and development of the area.
- Failing to Hire An Experienced Attorney
- Form Leases are a method to determine rent that is based on a percentage of sales. When it comes to medical tenants, this is not allowed and can result in large fines and penalties.
- It will be important to employ an attorney who can help to avoid mistakes down the road that can be costly.
- An attorney may also be able to help provide an added layer of protection to medical tenants when it comes to requiring the landlord to put expenses out to bid:
- Janitorial Services
- Over the term of the lease, these small changes can save money for the tenant over time.
Landlords and tenants can be better protected in their pursuit of new ventures by consulting with attorney and real estate professionals. Speak with an experienced attorney such as the business law firm Ridgefield CT locals turn to
Thanks to authors at Sweeney Legal for their insight into Business Law.