Commercial Leasing Tips for Healthcare Tenants


By Jeff Grandfield and Dale Willerton – The Lease Coach

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:

Negotiating for the Free Rent

The most free rent we have negotiated for a tenant was the first four years free on a 10-year lease term. In some cases, the landlord is in such a strong position that free rent is hard to get. The longer the commercial space has been vacant, the stronger your negotiating position will be. If the agent won’t adjust or increase the free rent on your Offer to Lease, then do it yourself in pen as a counter-offer.

Free Rent and/or Op Costs

When negotiating for free rent, it is generally best to negotiate on a total value basis. Most landlords who could provide two months of gross free rent at $8,000 in value might be more willing to give you six months of base / minimum rent free valued at $10,000. The tenant paying the Operating Costs from the beginning or from the commencement date will lessen expenses for the landlord who is paying those Operating Costs now.

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


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