Healthcare properties will have different layouts, structural designs, or sets of aesthetic features. For example, a physical therapy clinic will have a more open interior than a surgical center. And a hospital will fill more square feet than a dentist\’s office. But, regardless of the scale or use of the facility, healthcare property owners should make sure their properties have these five specific qualities:
1. Enough Square Footage for the Present and Future
Medical groups vary in size, but their growth shouldn’t depend on the square footage of their healthcare properties. Medical professionals need to choose facilities that can comfortably house their equipment, a waiting area, patient rooms, office space, etc. Their hallways should be wide enough for foot traffic or hospital beds. And their admin spaces should reflect their supplies storage, record-keeping, and telehealth needs.
Ideally, medical professionals will also choose healthcare properties that they can grow into. Since healthcare professionals typically sign longer leases, their facility should last them for the duration of their lease. As their patient base grows, they should be able to accommodate it while they are in that facility.
2. Appropriate Structural Elements for Different Healthcare Properties
Healthcare properties sometimes require structural elements that are different from other types of CRE. Many healthcare properties have particular mechanical, electrical, and plumbing (MEP) requirements. Some will also need specialized elements like lead lining inside the walls for rooms that house X-ray, MRI, or CT scanning machinery. Medical groups should be aware of their healthcare property’s needs and the costs associated with these structural elements.
3. The Right Market Location
Sometimes the success of a healthcare practice depends on its location. Different markets offer different benefits to medical practices. Urban markets, for example, provide public transportation, local amenities, and a large potential patient base. Meanwhile, suburban or rural markets might offer less competition and a greater demand for medical care. And those are not the only locational aspects to weigh and measure.
Topics like demographics, zoning requirements, city infrastructure, comps within the market, etc., are all relevant in the search for healthcare properties. Site selection is a lengthy process; choosing the wrong location can make or break a medical practice\’s ability to thrive.
4. A Healthy Landlord-Tenant Relationship
In many cases, a medical group that works in a facility leases the building from an investor or health system. The relationship between tenants and landlords requires clear communication both on the front end and throughout the length of the lease. These two parties will need to address property repairs, lease renewals, tenant improvements, etc. The more open the lines of communication are, the smoother the current lease and future negotiations will be.
In some cases, the medical professional using a healthcare facility is also the property owner. In that case, having a healthy landlord-tenant relationship is a given because they are one and the same. However, they should still consider themselves a “tenant” of their space to factor in the occupancy cost.
5. A Healthcare-Specific Commercial Advisor
Healthcare properties are significant commercial assets that function differently than other commercial properties. Stark Law and the Anti-kickback Statute, for example, specifically apply to medical facilities. In addition to the legislation surrounding medical real estate, lease terms for medical tenants often carry distinct details. Because of this, healthcare properties should have healthcare-specific representation. The commercial broker or advisor who negotiates the lease and facilitates landlord-tenant communication should have extensive knowledge of medical CRE.
The commercial medical real estate practice HBRE is familiar with the requirements of healthcare real estate. Because HBRE advisors solely focus on this niche CRE sector, they are familiar with the idiosyncrasies associated with it. They know what questions to ask and how to help their client make the most of their healthcare real estate investment.
Medical groups interested in obtaining healthcare properties can trust HBRE to serve them with excellence. Whether a medical professional is looking to buy, sell, lease, or build a medical building, HBRE has the skills and resources to help. Not only do we know what qualities healthcare properties should have, but we know how to help our clients achieve them.
