As competition in the healthcare industry increases, medical practitioners are increasingly looking for space in non-hospital campuses to be more accessible to their patients. However, unlike other facilities, leasing a medical office is much more complicated owing to legal and leasing complexities. A property appraiser with in-depth experience in leasing a medical office space can help significantly with the entire process.
Here are some of the key issues involved while leasing a medical office:
Use of the facilities: Various machines used in a medical practice such as CT scanners or X-ray machines may generate harmful radiation and other biomedical waste. Thus, when drawing the documents of leasing, special mention of such activities has to be mentioned to ensure compliance.
Access to facilities during non-office hours: Many medical facilities do not have fixed time for seeing the patients, especially during an emergency. Medical professionals might have to use the building outside normal business hours or even keep the clinic open 24/7 depending on their practice. In such cases, it becomes crucial to go through the leasing rights and get an acknowledgment to use the premises.
Options to renew: When it comes to a medical office, stability is its biggest attribute. More than the bricks and mortar, patients find comfort in the familiar surroundings, and it can be a daunting aspect for them to visit in a new facility. Also, as designing a medical office is more complicated than a usual business office, so it is important to understand the options to renew the lease with the assistance of a well-laid out commercial property appraisal process.
Improvements: A medical office needs a substantial number of improvements owing to its distinct use. It is crucial to obtain the right to modify the premises as per the requirements of the medical office. An architect or designer who is qualified with the intricacies of designing a medical space and build-out is necessary for designing it in accordance with the unique needs of a medical practice. Therefore, it becomes very important that your business appraisal process takes into consideration your rights to modify the facilities.
Exclusivity: Considering that the healthcare industry is facing stiff competition, it might be prudent to draw an exclusive contract with the landlord, ensuring that the landlords do not permit tenants that are in direct competition with the existing specialty practice. When leasing a medical office, it is significant to draw a contract restricting the landlord to lease office space to the competitors.
Death: It is critical to explore the concept of death in the circumstances when the solo practitioner is unable to continue with the practice. However, the landlord might insist that the penalty resulted due to termination of the contract should be taken care of by the insurance of the tenant. It is better to discuss with the landlord before signing the lease, as to who shall be responsible for the penalty.
Ensuring privacy: Most commercial leases allow the landlords to enter the facilities to let future tenants inspect the place, or the landlord might even visit the facilities for general inspection to ensure that the tenants are abiding by all the rules However, it is important that a healthcare practitioner limit the access of landlord in the facility or building for ensuring patients’ privacy and their medical records.
For the medical user, investing in a medical office is a significant decision, and utilizing the service of a knowledgeable property appraiser can go a long way in securing the decision and planning a perfect location for the medical practice, that fits the unique needs of a medical practitioner.