Any healthcare professional who has ever leased or purchased a medical property knows just how challenging commercial real estate (CRE) negotiations can become. Some probably wish they had hired a broker before they signed the closing documents. Others might wish they had a practice specifically skilled in medical real estate to help navigate the unique legal and structural requirements for a healthcare space.
Healthcare real estate brokers can take a mediocre deal and transform it into a true win for tenants, landlords, investors, health systems, and stakeholders alike. But the brokers need to have the skills to get there. Before hiring a medical real estate practice, healthcare professionals need to know what their real estate team has to offer. Here are five vital questions that a healthcare team should ask a medical real estate broker before partnering with their practice:
1. What services do you provide?
A broker’s answer to this question will say a lot about what their CRE practice is willing to provide. For example, some CRE brokers may not offer both tenant representation and landlord representation, while others are full-service healthcare real estate practices. Some CRE brokers travel to meet with clients in person, while others may handle tasks remotely. And while all reliable medical CRE practices should offer market research and basic calculations, the extent of these services may vary. Medical professionals should check with their chosen CRE broker to learn what specific services they will receive. (Learn more about what services a medical CRE broker should provide by clicking here.)
2. What resources can you offer?
Some CRE brokers offer more resources than others. For example, some offer basic marketing plans and handle transactions from a distance. But others provide the latest tech, create online and direct marketing campaigns, and even travel to the site to get a first-hand vantage point of the market. Healthcare professionals who are looking for a medical real estate team that is willing to go above and beyond will need to ask their potential CRE practice to provide them with a list of their available resources.
3. Do you have extensive experience specifically with healthcare real estate deals?
Plenty of CRE brokers would be able to handle generic CRE requests for medical teams. But if they don’t have in-depth experience with medical real estate, they might miss a few vital details, such as ceiling heights or lead lining requirements for rooms that house medical equipment. And a good medical CRE practice will have a working knowledge of Stark Law and the Anti-Kickback Statute. Medical professionals should check that their CRE team has extensive experience with medical real estate deals so they can ensure they receive the best services for a healthcare-specific transaction.
4. Are you familiar with the local market?
Medical real estate brokers should be willing to do their homework on the local market. They should research comps in the area and become familiar with the local amenities that could impact a specific practice and/or property. They should also review growth plans for each applicable city. Those factors could make or break a client’s decision to purchase or lease a building within a specific area.
5. How can my healthcare practice make the most out of my real estate investment?
A knowledgeable medical real estate practice should have a thorough answer to this question. Reputable medical brokers know how to work a transaction that benefits their clients while still maintaining a healthy landlord-tenant relationship. They also know how to add value to a medical property or guide a client who wishes to build a medical facility from the ground up. Healthcare professionals should ask their CRE brokers this question to learn how the broker can best benefit their specific medical practice.
Medical professionals who are interested in purchasing or leasing a healthcare space can trust that HBRE has in-depth answers to all of the above questions. Our practice solely focuses on medical real estate transactions, and our skills and experience cover all of the areas mentioned here. Healthcare teams who would like to learn more about what specific services our team provides can reach out to us directly for more information: [email protected].
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.
