There are a number of factors to consider when it comes to finding the right medical office space for your practice, and whether to buy or lease. Every practice is different, with varying needs and goals. For many medical practices, leasing is a great option, with plenty of valuable advantages. Here’s a look at some of the worthwhile benefits of leasing medical space.
Advantages of Leasing Medical Office Space
Fewer Upfront Costs
Purchasing a property requires a significant amount of money out-of-pocket. When you lease medical space, you don’t have to worry about the initial fees involved with purchasing a building, including down payment, closing costs and build-out. For medical practices, build-out can be an extremely expensive venture.
Flexibility
Leasing allows more room for flexibility, especially if you plan to expand or downsize in the future. The medical industry is always changing, so it’s important to remember that your practice needs today may be different down the road. Without having your money tied up in real estate, you can free up working capital to respond to new medical advancements and practice opportunities.
Less Upkeep
Medical facilities require a lot of maintenance, from cleaning and sanitation to updating infrastructure to meet changing medical facility standards. When you lease, your property manager takes care of building maintenance, including heating, ventilation and air conditioning units, grass cutting and snow removal. This way, you can focus on growing your medical practice and providing your patients with the best care possible.
Prime Location Options
Leasing allows you to establish your practice in a higher-profile location at an affordable monthly rent. Medical buildings that are leased are typically situated in high-traffic areas on busier roads, with plenty of nearby conveniences.
Less Build-out
Medical office buildings typically have the infrastructure you need for your medical practice. When you purchase a medical office space, it’s likely you’ll have to make substantial improvements to the facility, which can become extremely costly and stressful for a practice owner. By leasing, you can prevent the headaches of build-out and direct your energy to running a successful practice.
Disadvantages of Buying Medical Office Space
Upfront Costs
Owning a property requires a significant amount of money out-of-pocket. You need to have enough money for a down payment, closing costs and build-out. For medical practices, build-out can be an extremely expensive venture.
Risk
When you purchase medical office space, you risk the chance that your property will lose value over time. Many economical factors are out of your control when it comes to the real estate market. The market, in general, can be unpredictable, as well as cost escalations and depreciation.
Maintenance and Liability
As a property owner, you are fully responsible for the health and safety of all persons in your building. This means you will have to take care of maintenance items, from parking lot repairs to any infrastructure improvements. You will also need to budget for incalculable repairs.