Question: The lease for my medical office space is set to expire at the end of the year. Should I try to renegotiate my lease with my landlord? I don’t know where to start.
Answer: To answer this question, we asked a dedicated physician consultant from Bailes & Associates, a valued CAPAdvantage program vendor, for a few tips. Before you renegotiate your current lease, here are steps to consider:
Consider a financial analysis to determine your wants and needs. Some things to consider are the size of your suite, your minimum and maximum of the new base rent, your desired maximum term, the cost of your parking requirements, and so on.
Conduct a market analysis to determine the area’s market rents and the availability of space in the target area. Determine what the landlord’s concessions are.
Tour several comparable sites to determine the pluses and minuses of each.
Analyze and compare the findings of the strategic planning, market analysis, financial analysis, and the site tours.
Propose your terms and concessions to the landlord’s leasing agent, based on Item 4. Then prepare for the Landlord’s rejection or his or her counter proposal, which starts the negotiation phase.
Bailes & Associates, Inc. can help CAP members by offering commercial real estate support at no cost. For more information, contact your dedicated medical office specialist Gary Pepp at 562-743-1695 or gpepp@bailesre.com.
Bailes & Associates, Inc. License No. 00831364 Gary Pepp; License No. 00925108
CAPAdvantage is a program of CAP that offers members a suite of no-cost or competitively priced practice management benefits extending beyond superior medical malpractice and risk management protection.
Andie Tena is CAP’s Director of Practice Management Services. Questions or comments should be directed to atena@CAPphysicians.com.