The location of your practice is important to your success
There are several critical factors often overlooked by healthcare providers in the attempt to save their practice money by paying lower rent. One of those factors that could make paying a higher lease rate a better financial decision is a property’s location.
Demographics and neighboring tenants are two importance factors to consider when choosing your location.
If you have ever worked with a commercial real estate agent, you have likely heard them say, “location, location, location.” This is the most cliché term in real estate for a reason. Location is one of the most important factors in a healthcare practice’s success. There are two factors regarding your location that need to be considered: The first involves demographics, visibility, access, signage, etc. and the second is the quality of neighboring or anchor tenants.
Having a strong anchor tenant, such as a leading grocery store or large national retailer can significantly impact the rate you pay. However, higher rent premiums can be worth the increased expense when you consider the amount of potential new patients a strong anchor tenant can attract. A space with a better location and higher rent has the potential to increase the number of new patients per month to the point where the increased profit would be greater than the cost of the higher rent. Thus, the value of your practice would arguably be worth more upon a sale, as most practices are valued and sold based upon a percentage of annual revenue. If you can take home more money and increase the value of one of your largest assets, paying more in rent could be seen as a strategic investment versus simply an expense.
The same logic can be said of paying more for increased visibility, traffic count, accessibility, signage, etc.
You have the potential to save tens to hundreds of thousands of dollars and receive the benefit of having an expert who will evaluate your top options.
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CARR Healthcare is the nation’s leading provider of commercial real estate services for healthcare tenants and buyers. Every year, thousands of healthcare practices trust CARR to achieve the most favorable terms on their lease and purchase negotiations. CARR’s team of experts assist with start-ups, lease renewals, expansions, relocations, additional offices, purchases, and practice transitions. Healthcare practices choose CARR to save them a substantial amount of time and money; while ensuring their interests are always first.