For many healthcare tenants, negotiating a good lease or lease renewal against an experienced agent or landlord can be a challenge. While a doctor focuses on proper patient care, savvy real estate agents and brokers are specialized sales people. Their job is to sell tenants on leasing their location at the highest possible rental rate.
As explained in our new book, Negotiating Commercial Leases & Renewals FOR DUMMIES, tenants may go through the leasing process only two or three times in their entire lifetime – yet they have to negotiate against seasoned professionals who negotiate leases every day for a living. Negotiating appropriate leasing terms is vital for a doctor as the amount of rent he pays will directly affect the practice’s financial bottom line.
Whether you are leasing a new location for the first time or negotiating a lease renewal for your practice, these are some money-saving tips for healthcare tenants:
Measure Your Space: Most healthcare tenants lease space and pay rent per square foot. But often the premises or area leased has not been measured properly – meaning the healthcare tenant is paying for phantom space (or space that has been reported but doesn’t exist). Measurement discrepancies are common so make sure that you have your total area verified. It not only affects your base/minimum rent but also your Common Area Maintenance/CAM/Operating Costs.
Is the Asking Rent Too High? Rental rates are set by landlords to achieve a reasonable profit. Many tenants incorrectly believe that the landlord wouldn’t charge more rent than the tenant could afford to pay. You must distinguish between affordable rental rates versus inflated rental rates. Many healthcare tenants learn the opposite the hard way.
For a copy of our free CD, Leasing Do’s & Don’ts for Commercial Tenants, please e-mail request to JeffGrandfield@TheLeaseCoach.com.
Jeff Grandfield and Dale Willerton – The Lease Coach are Commercial Lease Consultants who work exclusively for tenants. Jeff and Dale are professional speakers and co-authors of Negotiating Commercial Leases & Renewals FOR DUMMIES (Wiley, 2013). Got a leasing question? Need help with your new lease or renewal? Call 1-800-738-9202, e-mail DaleWillerton@TheLeaseCoach.com or JeffGrandfield@TheLeaseCoach.com or visit www.TheLeaseCoach.com.