Office space is often the second-highest expense for healthcare providers in Maryland, behind payroll. So, finding affordable healthcare real estate is essential. The space must not only meet all of your physical needs – a desirable location, ample space, lots of parking, building amenities, room for growth, etc. – but also come at the right price. It’s a difficult balance to strike if you don’t know how to navigate this niche market.
Understand Your Options
There are four primary types of healthcare real estate: office buildings, retail space, medical office buildings (MOBs), and hospital campuses. Each property type has its own benefits, and understanding those will help you determine which best suits your practice.
- Office Buildings offer a professional and affordable option for healthcare providers
- Retail Spaces offer increased visibility and ample parking, but are often pricier than other real estate options.
- Medical Office Buildings (MOBs) are dedicated exclusively to healthcare tenants, which can help create strong referral partners between tenants.
- Hospital Campuses offer many of the same benefits of MOBs with one major difference – an affiliation with a specific hospital. This can help create a strong referral base for tenants.
Work with a Broker Specializing in Healthcare Real Estate
Healthcare real estate is often more complex than standard commercial real estate. And there are even differences between the varied medical specialties within the healthcare industry: medical, pharmacy, dental, physical therapy, chiropractic, vision, veterinarian, radiology, lab, and so on. Regulations can dictate everything from parking ratios to floor plans. Fortunately, working with an experienced medical real estate broker can help you find, negotiate, and lease/buy the right space at the right price. That’s what we like to call a win-win. These brokers understand the different legalities associated with leasing or purchasing healthcare real estate (OSHA, HIPAA, and Stark and Kickback, as well as local state regulations). And when it comes time to negotiate terms, these brokers also have access to up-to-date market data and tools that track industry trends, vacancy rates, and comparable properties. All of this specialized knowledge combined with ongoing relationships with sellers, put your broker in a great position to negotiate favorable terms on your behalf.
Typical services include:
|Market Surveys and Analysis||Lease Analysis||Lease Renewals|
|Site Selection||Expansions & Relocations||Equipment Requirements|
|Purchase vs. Lease Comparison||Patient Flow||Timeline Management|
|Lease and Purchase Negotiation Strategy||Patient Privacy||And More!|
Think Strategically About the Future
Finding affordable healthcare real estate is only part of the problem. It’s also important to think strategically about future needs. “Today’s consumers are not looking for a typical doctor visit,” explains Camille Galdes, NAIOP, the Commercial Real Estate Development Association. “They want accessible, efficient and technologically savvy medical services.” A 2018 study in Health Affairs concluded that expanding telemedicine offerings can help increase access to care and reduce costs. And COVID has seen this shift to a hybrid medical accelerated even faster. How will your new space meet the physical and virtual needs of your patients?
“Health care providers are competing for patients who expect more efficient service, so they are bringing health care to us, creating places that are accessible and desirable, and emphasizing the quality of experience,” says Mark Stapp, Executive Director of the Master’s of Real Estate Development program at Arizona State University.
When evaluating potential office space, it is important to do so with a forward-thinking lens. Can this space be modified to incorporate new technologies to better accommodate patients who want both in-person and virtual appointment options?
An Experienced Healthcare Real Estate Broker in Maryland
United Development Realty is a commercial real estate broker in Maryland specializing in the representation of medical and dental professionals. We know the healthcare industry inside and out and our client-first approach ensures that your unique needs are always met. We take the time to get to know you and your goals.Then, once we fully understand your vision and objectives, we can assist you through a tailored package of services.
Over the years, we’ve assisted hundreds of healthcare professionals and worked closely with medical related business owners, including Johns Hopkins, Maryland State Dental Association, MedStar, LabCorp, Union Memorial Hospital, American Physical Therapy Association, American Academy of Physician Assistants, University of Maryland, Baltimore Washington Medical Center, Howard County General Hospital, and many more.
Please call our office (locations in Bethesda 240-221-1976 and Fells Point 410-522-1632) to get in touch with a licensed commercial real estate broker today.