Commercial Leasing Tips for Healthcare Tenants


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:

Lease Renewal Allowances: Doctors often don’t think that they can negotiate for a tenant allowance on their renewal term. Untrue! Approximately 75% of The Lease Coach clients get a tenant allowance on their renewals. Remember, if the landlord is giving allowances to new tenants just moving into the property, then why can’t you get an allowance too? Even if your commercial space only needs cosmetic upgrades (e.g. new carpeting or fresh paint in your waiting room), negotiate this as part of your renewal deal. After all, your tenancy is proven plus there is less risk for the landlord putting cash into your renewal than taking a chance on a new tenant.

Maximize the Tenant Allowance: Further to the above-mentioned tip, yes, it is possible to receive all, or even more, tenant allowance money than you require to build out your commercial space. This boils down to the net effective rental rate. Some tenants can afford to pay a higher rent but want to minimize start-up costs. The more convincingly you can demonstrate why you need the money (fixtures, etc.) the more chance you have of receiving it. Some landlords require no explanation at all … ask for more tenant allowance money than you need as the landlord will likely counteroffer.

For a copy of our free CD, Leasing Do’s & Don’ts for Commercial Tenants, please e-mail request to

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  or or visit


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