5 Reasons (other than cost) to Shop Your Lease
Recently we did a showing with a well established medical practice in the Fox Valley area. Currently this practice is located in an on-campus medical facility (a medical office building located on hospital grounds.) Their initial lease term is coming due, so they are shopping new sites. In this particular situation they mentioned that the current site was going to raise their rates. This is not uncommon upon renewal situations (and is warranted most of the time due to escalation). During this showing we reminded the prospective tenant of 5 other reasons shopping around is beneficial:
1. Square Footage: By moving to a new facility, tenants have the ability to upsize or downsize based on their current situation. This may not be possible at their current building due to nearby tenants and already configured buildings.
2. Configuration: Most times, moving to a new office means being able to reconfigure their suite. Perhaps the practice feels they need an additional office, but they don't need a large storage area. Or, maybe having all the doctor's private offices located far from the patient rooms has become important to the practice.
3. Referrals: A new building means new neighboring tenants. These tenants can provide great referrals (especially in medical properties). For instance, a podiatrist may refer to a physical therapy group or a dentist to an orthodontist. These referrals may not be available at the current property.
4. Maintenance and Upkeep: Sometimes properties go ignored by management and ownership. In the medical field where MANY patients visit the office on a daily basis, it is important to occupy a property thta is well maintained and presentable.
5. Location: There are many ways to determine a good location for a medical practice. For instance, one practice may take poll of their patients and base their practice locale on zip code. Another practice may prefer to have their office on a main roadway.