The topic of downsizing is a challenging subject for many healthcare professionals. How can a medical practice continue to grow while shrinking its commercial real estate footprint? How can a medical facility best serve a full patient roster while using less square footage? And what employee amenities should remain on site without incurring significant expenses to the bottom line?
Creative Planning and Guidance
When downsizing is imperative for a medical practice to stay afloat, they will naturally have many questions. Before a medical practice can make the difficult decision of how to best handle downsizing their facility, they should consult a medical CRE broker. In some cases, the medical CRE broker may be able to renegotiate a lease to save their client money, allowing them to remain in the same facility. In other cases, the CRE broker can find a comparable space within the same market that allows the client to keep their square footage, but at a lower rental rate. Medical CRE brokers are qualified to guide their clients through creative planning so that they don’t have to leave behind vital medical CRE elements.
However, there are a few things that are non-negotiable when it comes to downsizing a medical facility. Healthcare professionals who work in specialty fields may have additional necessary elements which they will need to communicate with their medical CRE broker. But the below items are important for most healthcare professionals to include on their “must-have” list.
3 Non-Negotiables When Downsizing Your Medical CRE Space
1. Employee Spaces
The year 2020 placed a heavy burden on medical staff around the globe. Many medical groups are experiencing a significant staffing shortage, and if there was ever a time to consider creative methods for employee retention, it’s now. Simple things like increased internet access throughout the property and natural light in employee break rooms could improve the work environment for employees. When choosing what elements to include in the new lease negotiations, medical tenants need to ensure they have employee spaces.
2. Making Room for the “New Normal”
The events that unfolded during 2020 have left the words “the new normal” echoing through the halls of empty emergency rooms and socially-distanced waiting areas. It’s unclear how the pandemic will ultimately impact the long-term future of healthcare real estate. But for now, facilities will need to leave room for social distancing and create spaces for physicians to handle telehealth visits. These measures have not only increased this year but may be the new normal for the foreseeable future. Medical groups that are planning to downsize should ensure they hold onto the property square footage for both.
3. Securing Enough Space for Patients
Some medical groups may be experiencing a slowed patient schedule due to current health and safety guidelines. But that doesn’t mean there are fewer patients overall or that the staggered patient appointments will remain forever. If a medical group is choosing to downsize their CRE footprint in an attempt to save capital, they should still consider the size of their patient database. Leases last for years at a time, and medical groups need to consider patient levels for the next five, ten, or fifteen years before deciding to decrease square footage.
During the downsizing process, medical groups should also consider the location of the facility, the facility’s structural components, and the capacity of the rooms that will handle large medical equipment. Each type of medical practice will have specifications for its medical facilities. HBRE’s team of medical CRE advisors are more than capable of handling these needs. Their experience and training reach across all types of healthcare practices, and they serve both tenants and landlords. Before downsizing a healthcare facility, allow HBRE to review the medical practice’s needs and see which specific elements are non-negotiable. To learn more about what services HBRE offers, visit HBRE.us.
If you are interested in learning more about investing in commercial real estate, or if you have questions about buying, selling, or leasing a commercial property, please contact an HBRE advisor. Our team of experienced CRE professionals have the skills and insight to assist with all property transactions. To reach out to us directly, email [email protected] or call 615-564-4133.
