By Jeff Grandfield and Dale Willerton
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:
Trade Free Rent for Cash: If you have successfully negotiated for a free rent period, it is sometimes possible to convert that value into cash and use it for additional leasehold improvements. For example, if you have negotiated for four months of free rent with each month valued at $4,000 , you could trade this free rent for cash to a total of $16,000. Make sure you justify your expenditures and even discount that value from $16,000 to $14,000 to get the money (if needed).
Process versus Event: Too many doctors incorrectly view the leasing and/or lease renewing processes as events – or one big meeting with the commercial landlord. In fact, the more you approach leasing as a process done over time and deliberately step by step, the better your lease deal will often turn out. Taking things slowly gives you the time to regroup and re-approach various lease clauses that you want to negotiate.
For a copy of our free CD, Leasing Do’s & Don’ts for Commercial Tenants, please e-mail request to [email protected].
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 [email protected] or [email protected] or visit www.TheLeaseCoach.com.