Searching for Healthcare Property
“Property for Sale” signs and newspaper ads may have been the primary form of marketing decades ago. But in this day and age, there are many other resources available to those searching for commercial real estate (CRE). The internet and other technological advancements might ultimately make the property search easier, but those resources can also make it much more daunting. The list of steps below provides a guide for prospective property owners searching for CRE.
1. Complete the Prep Work
Before searching for CRE, healthcare professionals need to review their budgets and secure their financing. Once they understand their cost requirements, prospective facility owners should review these questions:
What market would be best for the healthcare practice?
Would one of the nation’s top markets be ideal for the healthcare practice? Or, would a secondary or tertiary market be the best location? Prospective clinicians opening a new practice should consider all locational factors before making a final decision.
Which type of healthcare property is right for the practice?
Some practices will require a hospital campus, while others may need a small medtail facility. A healthcare professional will need to determine their preferred square footage and ideal buildout requirements for the space. Those points will help them narrow down the type of property they will focus on in their search.
Does the healthcare professional plan to own or lease the property?
A healthcare professional doesn’t always choose to own a building outright. While some own their facilities, others choose to lease an existing space. There are also sale-leaseback deals (which allow the tenant some control over the space while leasing it). Build-to-suit deals are another option, allowing the lessee to determine the design of a new property without being the facility owner. A healthcare professional should take these options into consideration while searching for CRE.
2. Search for Commercial Property Online
With so many resources online, which is a reliable source for CRE information? These are a few reputable online property search tools:
CoStar
CoStar is an online resource that commercial brokers use to review properties. Healthcare professionals can reach out to a healthcare real estate broker for information from this platform.
LoopNet.com
This platform is a resource available to anyone looking for CRE. It provides an overview of the property, including photos, pricing, and location.
Website Property Pages
Some brokers present their listings on their company websites and list details like amenities, square footage, and other property information.
3. Keep in Mind Other Important Factors Regarding Site Selection
Online CRE searches are helpful, but they can only reveal so much about a property. These are a few issues to keep in mind:
Adaptive Reuse
Some healthcare practices choose an adaptive reuse project, converting an existing space to fit their needs. Sometimes this option is more cost-effective for the new facility owner because they don’t have to invest in a fully occupied medical facility. But in other cases, a building conversion could be more costly due to additional plumbing and electrical needs.
Zoning
We’ve addressed the topic of zoning in a few of our other blogs (learn more here). Zoning requirements heavily impact the location of medical practices.
Commercial Brokers
Healthcare practices searching for a medical property should strongly consider partnering with healthcare real estate brokers. Their focused expertise provides detailed insights into healthcare site selection.
Healthcare real estate advisors help their clients with the necessary prep work. They complete thorough market research to learn the fair market value for a given property. These advisors also have specialized resources and can negotiate the final details of a purchase agreement or lease. They understand what elements ultimately affect the prospective buyer.
At HBRE, our team assists medical professionals with site selection. Healthcare professionals who would like assistance with buying commercial, medical CRE can reach out to HBRE for any questions regarding their property search—[email protected].
