Running a medical office is much more difficult than other industries as you are responsible for both the medical and business side of things. This can create extra pressure and often make leasing the right medical office more complex than any other type of business. One of the best ways you can protect your business and its future growth is by negotiating and solidifying a leasing agreement that is right for you and your business.
Medical office leases need provisions that are unlike other businesses. Issues like patient safety and compliance with things like the Americans with Disabilities Act are necessary for medical offices. Below you will find some tips on negotiating your medical office lease.
- Use Provisions: Paying close attention to the use provisions is necessary because medical offices are much different than regular corporate offices or businesses. Your medical office may require the use of X-rays, CT scans, and other machines that could have negative health impacts due to the radiation emitted. Be sure to inform your landlord of all of the machines you will have and their respective uses. This also needs to be included in your lease agreement. This can help with avoiding any future liability later on if everything is in writing.
- Know the Terms:It’s important to read the entire contract. If there is anything that is unclear, have an attorney review it and provide you with more specific information. Leases can be long and include a lot of legal jargon that may be confusing. Some of the most important terms in regard to payment include the common area charges, rental increase amounts, utilities, property insurance, and taxes. You will not only pay for your office, but you will likely be charged for any common areas, including entryways, hallways, etc. This can add to your monthly rent which may come as a surprise if you were not prepared for it. It’s also helpful to know how the rent will increase in the coming years. Most business leases will run for five years with rental increases each year. These are negotiable so be sure and ask for a reduction before signing the lease.
- Consider Business Growth: Talk with your landlord about the ability to have the option to rent additional space at the same rate. Having the option to grow your business without having to worry about moving or paying higher rent for the same area can help reduce your costs and help with business growth.
- Americans with Disabilities Act (ADA): Medical offices may have more clients that have disabilities or may need accommodations when entering and exiting the building. Be sure that the building is compliant with the ADA before you sign the lease and ensure that it is a part of your lease to continue the compliance. While it is legally required to comply with the ADA, there are those who disregard the law.
- Exclusivity Provisions: An exclusivity provision is a must in your medical office lease. This provision means that the landlord will promise you that they will not lease any other space in the development to someone who would be in direct competition with you. If you have a specialization, be sure to have this provision clear and present from the outset to ensure you are the only medical provider within the specific development. This can save you a lot of time and money in the long run and support business growth.
If you are looking for a commercial medical space in the southern California area, check out Boulevard Medical Properties. Boulevard Medical Properties has properties for lease in Northridge, Brentwood, Culver City, and Downtown Los Angeles. They are focused on finding their clients the best property for their business and they take the stress out of the whole process. Choosing to find a commercial property for your medical practice can be difficult but Boulevard Medical Properties can help elevate your business to the next level.