Leasing Medical Office Space And The Finer Points

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The business owner who leases medical office space has quite a bit more to think about when leasing this type of an office building over all others. Since the medical profession is unique in the office setting it needs and the work which is performed there, there are certain finer points which an individual must consider prior to leasing medical office space.

Medical Use Issues

Certain issues relating to usage of the leased office space will come into play, especially in the case of medical use. There will often be requirements relating to the disposal of hazardous waste materials, the proper office usages and how many individuals will be allowed in the office space at one time. The presence of different pieces of medical equipment may also have to be discussed so that the landlord is agreeable to the medical office space use and what services may be offered in the leased premises.

Americans with Disabilities Act (ADA) Issues

Since you will be operating a medical facility, you should make sure that your leased office premises meets the Americans with Disabilities Act (ADA) requirements and are accessible for patients and other individuals who visit your facility. This ADA issue should be addressed in the lease and it is quite important so be sure to pay close attention to this factor before you sign a lease for medical office space.

Exclusivity Provisions in the Lease

Many medical professionals like to be the only medical provider in the office building or commercial building. Therefore, it is a good idea to make sure there is an exclusivity provision in the lease which states that there will only be one medical office within the development or office building. This outlines the request of the office tenant and makes sure that there won’t be competition for the office tenant down the road with the landlord leasing out other office space in the building to another medical professional.

Clause in the Lease Which Pertains To Death and/or Disability of the Office Tenant

In the case of solo medical practitioners, some may wonder what would happen to their lease should there be death or disability during their lease term. A death and disability clause within the office space lease will help to ensure that the lease can be canceled or will expire upon such an occurrence and there will no longer be any requirement to pay rent on the lease. This may take some persistence on the part of the office space tenant but one should attempt to have such a clause included within the lease if at all possible.

Renting medical office space may take a different route than renting regular business office space. A tenant advisor can help with the process to make it go more smoothly. The office space tenant who is a medical practitioner must do everything possible to ensure that the office space which they lease is suitable for their medical practice needs and that the lease contains all of the necessary provisions which will benefit them and protect them in the long run.

Office Lease Options: The Best Time To Exercise

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In commercial leases, there are many clauses for tenants to pay mindful attention to, in addition to reading the entire lease carefully, of course. However, the Lease Option clause is an extremely important one to be on the lookout for prior to signing a commercial office space lease. This is the clause which will tell you when, and if, you will be able to renew your lease when the time comes to do so. Even if you have no current plans to renew your commercial lease or are unsure as to whether you plan to stay in the location once your lease expires, it is always wise to ask for one of these clauses to be put into the lease, if it isn’t already.

Why Is A Lease Option Important?

There are a few reasons why tenants who lease office space should be sure to have a lease option included in their commercial lease. First, this type of option to renew provides the tenant with a future plan should they decide to stay in their office space and renew the lease for another term. It guarantees that you won’t have to pick up and move if you are not ready to when your current lease expires. Secondly, an option to renew in the lease will lay out the details of the cost of your rent when you renew and help you to be certain that the price at which you renew is acceptable to you. It provides you with a way to lock your current lease rent amount into place for the future. Lastly, with the cost it takes to relocate a business, you want to know that you won’t have to if you don’t want to. You can feel confident in knowing that you won’t have the expenses of relocation down the road.

When Is The Best Time To Exercise The Lease Option?

The best time to exercise a lease option to renew will depend on the language in your current lease (or the lease you are about to sign if this is your first time entering into a lease with the new landlord). The Lease Option clause will highlight when you must exercise your lease option in order for it to be valid. This will often depend on the state you are in and what the normal notice is for commercial tenants who wish to exercise their lease option with their landlords. Always pay close attention to the time period stated within the lease because if you fail to exercise your option to renew on time, your landlord basically doesn’t have to let you stay in the premises unless they want to overlook the delay in exercising the lease option and allow you to stay anyway.

Having a lease option in your commercial office space lease is simply a smart idea overall. Just because such a clause is included in the commercial office space lease does not lock you in to renewing your lease when the time comes. If you choose to move to a different location at the expiration of your current lease and not exercise the option to renew, you are free to do so. It is just a good idea to have such a clause in place should you wish to maintain your business at its current location for another lease term.

Understanding The Cost Of An Office Space Build-Out

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When searching for a commercial building or office space to lease, you may not find exactly what you had in mind when you started off. With that said, there are ways to take commercial office buildings and turn them into what you had envisioned in the first place, with the landlord’s permission, of course. This can occur in the form of an office build-out. An office build-out entails taking a current commercial establishment and tailoring it to suit the needs of your company. The following will help you to understand more about the office build-out and calculate how much such an adjustment will cost.

Why Office Tenants Need an Office Build-Out

One might think that when you lease an office space that you take the office space as is and are not able to alter the space in any way. This is often not the case. Many commercial tenants lease office space on the condition that certain alterations are made to the premises prior to or while they are leasing the space. These tenants often need something known as a build-out, where the office space is expanded upon and altered to suit their needs. This may be so that it can suit their specific industry needs or because it simply needs to be larger or sectioned differently.

How Much an Office Build-Out Costs

An office build-out will vary in cost but there are general estimates which are common with today’s commercial office space construction. For example, if you are interested in leasing office space and need a partial build-out for something such as paint and carpet, the current rate for both of these updates is approximately $8.00/sf. On the other hand, if you require a full build-out, the price per square foot will be in the general vicinity of $30-$40/sf.

Who Pays For the Office Build-Out?

Many times the landlord will pay for the build-out costs. This is especially the case when the lease term is for three years or more. For those instances when the landlord will allow the build-out to occur but refuses to pay for the costs, the tenant may pay for the costs on their own or ask that the rent rate be reduced for a certain amount. These build-out costs and requests for such alterations are often done during the negotiation stages of the office space lease process. One way to ensure that your bargaining power is the best that it can be is to have a tenant representative alongside of you when you meet with your landlord to discuss the build-out options available to you and see if the landlord will contribute to these endeavors.

An office build-out provides commercial office space tenants with a beneficial way to get the office space they want with the amenities and space they desire. Many landlords in the commercial arena are open to build-out negotiations and know that it is a good way to draw tenants in and have them lease their premises as opposed to going elsewhere. If you are looking to acquire an office space lease with build-out potential, bring along a tenant representative to ensure that the negotiations go as well as they should.

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Tenant Improvement Allowance For Your New Office Space Lease

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As a commercial business tenant there are plenty of details to iron out, even before you move into your new office space. Once you have narrowed down the choices to a particular office space and walked through the building to make sure that everything is to your liking, the next step prior to signing the lease is to see what, if any, tenant improvements you will be making to the premises once you get in there. Before you sign the lease, you must negotiate a tenant improvement allowance with the landlord. You will often find that the landlord will not freely agree to any amount you want for tenant improvements and you will most likely have to negotiate. The following will show you how to do so with the greatest rate of success.

Identify and Properly Document Requested Tenant Improvements

When you go through the commercial office space prior to signing the lease, write down what tenant improvements you will be making and what you would like the landlord to cover as a tenant improvement allowance. In addition, take pictures of the items to show the landlord as this will help to support your case that such tenant improvements are needed. Make sure you have the photos and written notes on the items when you meet with your landlord.

Prepare Price Quotes for Each Tenant Improvement

Before meeting with your landlord about these tenant improvements, go online or to home improvement stores to figure out what each item would cost. If the tenant improvements are more voluminous in nature, you can contact contractors to see what they would charge for the requested improvements. As with the photos/written notes on the tenant improvements, you should also make sure you have these figures with you when meeting with the landlord to discuss your requests.

Consult With Your Tenant Representative throughout the Process

You should also have a tenant representative by your side when leasing office space. This individual will come in extremely handy during this type of office space lease negotiation process. The tenant representative will know the best ways to help you get what you want out of the tenant improvement allowance.

Be Prepared To Compromise If You Really Want the Office Space

In the end, if you want this particular office space and the landlord is not willing to yield on all of your tenant improvement allowance requests, try to be willing to compromise. This will get you a few of the requested tenant improvements and still allow you to lease your desired office space as well.

Not every office space for lease will be in tip-top shape the moment you lease it. There may be a need for improvements in order to ensure that it is exactly how you want it to be. Many office space tenants are willing to lease a less than perfect office but acquire tenant improvement allowances from the landlord so that the finished product is what they envisioned in the first place. Again, not every landlord will be willing to accommodate completely but by following the tips listed above, you will be more than likely to get the results you want from your prospective landlord.

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How To Choose A Commercial Office Space Tenant Representative

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As a business owner searching for a commercial lease for your company, you have to make sure you take every safeguard possible in the leasing journey. You want to choose a commercial office building which meets your needs and get a lease on the property which benefits you as the tenant. Although you can embark on the search alone, it is much better to do so with a commercial tenant representative by your side. The following will highlight how to choose a commercial tenant representative to help you in your search.

Review Your Options Before Settling On a Specific Tenant Representative

The first thing you need to know is never pick the first tenant representative who comes along. There are plenty of options when it comes to this type of professional. Even if you narrow it down to a single tenant representation firm, you want to have a few options in front of you prior to picking the tenant representative who will represent your commercial leasing interests.

Choose a Commercial Tenant Representative Who Will Listen To What You Want

Although you want your tenant representative to be a go-getter, you also want your commercial tenant representation professional to listen to what you are saying. If you have a certain commercial office setting in mind to lease, you want your tenant representative to hear what you want and apply it in the search for the ideal office space to lease. You can usually get a good feel for this aspect in the initial meeting with prospective tenant representatives. If you feel as if these individuals are listening to what you want in an office space lease and are going to help you get that type of commercial office space to rent, then rest assured that this is an individual who will take your ideas and run with them.

Find a Tenant Representation Professional Who Knows the Target Area Well

You should also pick a tenant representation professional who knows the desired office space lease area well. The commercial tenant representative should know the target area so well that they will be able to take you around to the various options quickly, efficiently and with ease. Also, when your tenant representative is familiar with the desired locale, chances are that they will know what is common in that area with regard to lease terms, pricing and landlord requirements. When your tenant professional knows the surrounding vicinity, you can feel confident that they will steer you in the right direction and help you to find the perfect commercial office space to lease in a stress-free manner.

Searching for a commercial office space to lease with a commercial tenant representative by your side simply makes sense. This professional knows how to direct you to the right potential leasing options, help you find the perfect office space to rent and make sure that your lease terms are acceptable to you. When you have a commercial tenant representative help you out with locating commercial real estate to lease, you can have the confidence in knowing that you are in good hands the entire way through the leasing process.