The Nuances of Leasing Medical Office Space
Abstract
What Healthcare Providers and Physicians Need to Know About Leasing Medical Office Space Medical office space users and physician practices don't typically relocate to new buildings as often as general office tenants. Some of these key issues include: Term: As a result of the typically higher tenant finish-out costs it is common for medical office leases to be 7-10 years in term as opposed to 3-5 years for general office tenants. Because of the specialized build-out needs of the medical tenant, medical tenants should resist these provisions. Liens: As a result of the cost of medical leasehold improvements, physician practices often finance leasehold improvement costs above the landlord allowance as well as medical equipment purchases. Lien rights provided to the Landlord should be subordinate to the Tenant's lenders for medical equipment purchases. These provisions need to dovetail with the special situation of a medical tenant. For the medical user real estate is a significant multi-year financial commitment, utilizing a knowledgeable real estate advisor with experience in healthcare real estate and careful planning can ensure the selection of the right location and a well structure transaction and lease agreement to fit the unique needs of the healthcare provider You might also like: Leasing Retail Space for Medical Use Big Data and Healthcare Site Selection The Increasing Importance of Real Estate in Healthcare Get my posts via e-mail: here.
