Healthcare Real Estate: A Niche Sector of CRE
Commercial real estate is a multifaceted industry with brokers that work across a spectrum of property types. And, just as all commercial buildings are not alike, commercial brokers have individual specialties as well. One commercial broker might primarily work with industrial spaces, and another may focus on retail properties. While these are common types of commercial spaces, a broker who works with these properties might not be best suited for the niche sector of healthcare real estate. The distinctive characteristics of healthcare real estate require brokers who specialize in the medical industry.
Healthcare real estate encompasses an array of medical properties, such as hospitals, medtail facilities, medical offices, etc. Healthcare real estate brokers work with investors, physicians, health systems, private practices, and other related parties to assist with all aspects of these medical assets. Healthcare real estate typically involves longer lease timeframes and unique structural elements. Because of this, medical brokers are intricately involved in the leases, transactions, and even building developments of the medical facilities they represent.
Buying and Selling Healthcare Real Estate
Healthcare real estate brokers have the specific skills to handle commercial transactions for medical properties. These brokers solely work with the healthcare industry, so they are very familiar with the legislation and requirements surrounding medical transactions.
Buying Medical Real Estate
Healthcare real estate brokers assist investors, physicians, and healthcare systems with purchasing healthcare properties. In some cases, that means they help with:
- Site selection
- Reviewing the property
- Studying the local market
- Handling the necessary calculations
- Discussing regulations applicable to healthcare real estate
- Guiding the buyer through the final purchase of the building
Selling Medical Real Estate
Healthcare brokers guide investors, physicians, and healthcare systems through the sale of their medical properties. Healthcare real estate brokers understand the specialized aspects, like structural needs for an incoming medical practice. They also know what features add value to a property. They take this information and market the property to the right potential medical buyer. They help with:
- Advising the property owner on how to increase property value
- Marketing the property
- Listing the property and sharing the information with a network of potential buyers
- Guiding the sellers through the final sale of the property
Leasing Healthcare Real Estate
Healthcare real estate brokers guide their landlord or tenant clients through lease agreements. Full-service medical real estate practices assist both landlords and tenants with the full range of commercial real estate services.
Landlords
Sometimes, healthcare properties are owned by health systems or individual physicians who have space for lease. Healthcare real estate brokers help find new tenants, review or adjust leases, assist with lease renewals, and handle communication with the tenants.
Tenants
Healthcare real estate brokers often work with medical tenants. These brokers help their clients find the right space, communicate their buildout needs, negotiate tenant improvements (TI), handle the lease terms, and communicate with the landlord.
Building a Healthcare Property
Occasionally, healthcare real estate brokers will help a client build a new medical facility. The development may be a build-to-suit deal, or the client may choose to build and own the new facility. Healthcare real estate brokers help connect these clients with developers, investors, and other business partners.
HBRE: A Full-Service Healthcare Real Estate Practice
HBRE is a full-service healthcare real estate practice. Our team of advisors assists landlords, tenants, investors, physicians, and health systems with their medical real estate needs. Because we specialize in medical real estate, we know what markets, lease details, and property features are right for our clients. We use our experience in the industry to walk our clients through all aspects of a healthcare real estate transaction. Medical professionals, investors, or health systems interested in hiring a skilled healthcare real estate team can trust HBRE to serve them with excellence.
