The following case study highlights one of many ways we help our clients succeed at the highest level in their healthcare real estate transactions. As every property requirement, deal structure, and negotiation is unique to each practice owner, we strive to find solutions that provide maximum benefits to our clients.
Drs. Yarbrough and Sanders wanted to bring the 100% Chiropractic brand and philosophy to Northeast Florida and open the area’s first 100% Chiropractic office. They wanted to be close to the beach – preferably in the fast growing county of St. Johns, which is Duval (Jacksonville’s) neighbor to the south.
We researched 20+ locations and narrowed the field down to eight solid options in a report, summarizing the positives and negatives of each, with full details about the financial aspects of each location. We visited all the locations and narrowed them down based on Drs. Yarbrough and Sanders preferences, keeping in mind the brand and vision 100% Chiropractic has for it’s locations.
After narrowing the list, we negotiated on multiple options and settled on one in St. Johns county. The lease was signed and then Covid struck. Construction, permitting, materials, workers…every aspect of the project was affected and when it was delivery time, we were still in the midst of the Pandemic lockdown and the project had not broken ground. The doctors made the decision to pull out of that location and opt for one of the other spaces that we had fully negotiated and was still available. This one was in Jacksonville, not in St. Johns County, but it was almost ready to deliver.
The lease was signed, and after a little delay in permitting, the buildout was underway. Because we negotiated buildout time extensions due to delays arising from Covid such as permitting, shipping of construction materials, lock down, etc…the extra time it took to get the office completed did not eat away at any of the free rent the landlord gave once the Certificate of Occupancy was awarded.
The change in location gave Dr. Yarbrough more square footage – a total of 2,234sf, and better visibility in a shopping center with a strong anchor (Fresh Market). We negotiated the asking base rent down by $4 psf with no escalation the first several years. We increased the tenant improvement dollars to over $100,000 and, because this space was a gray shell, we were able to get the landlord to provide and install the HVAC and the demising wall at their cost, both of which were a tremendous savings to our client.
Drs. Yarbrough and Sanders now have a beautiful office in a brand new shopping center, with a strong anchor, lots of traffic, great visibility, and good tenant synergy!
“If I had to sum it up in a sentence or two, I would say that the service CARR provided was exceptional. You really took the time to give us up-to-date statistics and chose places that met all of our requirements. You treated us as more than a client, but as family, which is what I really appreciated about you.”