Published On Oct 12, 2022
in Retail Real Estate Industry
So you’ve made the decision to open, move or expand your own medical practice or facility – what now? You need to find space! But should you rent medical space or purchase an existing space? We talked to Mark Porter, Senior Director of Leasing for Phillips Edison & Company, to find out why leasing a medical space makes a lot of sense for many medical practitioners.
1. Enjoy built-in customer base
Medical space adjacent to other tenants, such as space within a grocery-anchored shopping center - creates a synergy and built-in customer base for your growing business. People appreciate the convenience of being able to come to your business and then visit nearby shops without moving their cars. In addition, when they are visiting the grocery store or other shops, they’ll see your sign and note your business for when they need your services.
2. Reserve capital when you lease a medical space
Leasing medical space allows you to reserve capital for other needs or projects. Rather than borrowing a large amount to build your own building, you only need to borrow enough to build out the interior of your space – and then, if negotiated as part of your lease, you may get some of that back through a landlord contribution called a “tenant improvement allowance.”
3. Focus on your business rather than maintenance, security, landscaping, etc.
In a leased space situation, the landlord takes care of exterior maintenance, security, landscaping, etc. You don’t need to worry about all that and you’re free to focus on growing your business.
4. Get open and operating faster and easier
Building a new building – or buying an existing one and then renovating it to meet your needs – will take time and coordination with various authorities, contractors and financial institutions. Leasing a space will allow you to get in, open and serving patients a lot more quickly!