For a brand new medical practice just starting out, or an established practice looking to expand, finding the right location is paramount. And there are plenty of options. In fact, there are four primary types of Medical Office Real Estate. Retail space offers visibility and ample parking, but can be on the more expensive side. Hospital campuses are affiliated with a specific hospital, which can help create a strong referral base. Medical office buildings (MOBs) are similar to hospital campuses in that they are dedicated exclusively to healthcare tenants, but this also means these properties are more desirable and, thus, more expensive. And, finally, there are office buildings, which provide a cost-effective, professional setting for medical professionals.
There are pros and cons to each type of commercial property. So, how can you be sure you are making the best choice for the future of your medical practice?
Navigating Medical Office Real Estate Sales Starts With Finding the Right Partner
Finding the right medical office real estate starts with finding the right tenant rep broker – especially one who specializes in healthcare. Medical real estate is a niche market. So, it’s important to work with a broker that intimately understands this industry. Medical real estate brokers can help you find, negotiate, and lease/buy the commercial space that is right for your practice. These brokers understand the different legalities associated with leasing or purchasing healthcare real estate (OSHA, HIPAA, Stark and Kickback, and 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 medical real estate brokers in a great position to negotiate on your behalf and negotiate favorable terms.
Future-Focused Thinking is Important When Evaluating Medical Office Real Estate
“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 may increase access to care and reduce costs. This is especially true since COVID further changed the medical landscape in 2020. Medical providers need to incorporate new technologies to support an increasingly virtual world to better accommodate patients who want both in-person and virtual appointment options.
“To meet the needs as well as the preferences of their patients, health care providers are moving into new types of spaces and using traditional commercial real estate in new ways,” says Galdes. So, when evaluating potential medical office real estate, it is important to do so with a forward-thinking lens. Can this space be modified to support new technologies and improve patient care?
“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.
United Development Realty Understands Medical Office Real Estate!
Commercial real estate is often the second-highest expense for healthcare providers, behind only payroll. If you want to find a space that not only fits your physical needs, but also your budget, United Development Realty can help. We are a commercial real estate broker in Maryland specializing in the representation of medical and dental professionals. We know medical office real estate 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 practice. Then, once we fully understand your vision, objective, and goals, we can assist you through a tailored package of services.
|Real Estate Market Analysis||Purchase vs. Lease Comparison||Space Planning|
|Market Surveys||Equipment Requirements||Patient Flow|
|Site Selection||Lease and Purchase Negotiations||Patient Privacy|
|Expansion Strategy||Lighting||And More!|
Please call our office (locations in Bethesda 240-221-1976 and Fells Point 410-522-1632) to get in touch with a medical real estate broker today. Let us help you find the perfect space to grow your medical practice, and negotiate a price that makes sense for you.
Over the years, we’ve assisted hundreds of medical professionals and business owners, including Johns Hopkins, University of Maryland, Baltimore Washington Medical Center, MedStar, LabCorp, Union Memorial Hospital, Maryland State Dental Association, and many more.