Location Factors to Consider Before Leasing or Buying Medical Real Estate
Medical real estate is a niche sector of commercial real estate (CRE), and as such, it comes with a unique set of parameters. So even though location is a prime consideration for all CRE sectors, healthcare professionals have a different set of factors to consider. A community’s infrastructure, zoning requirements, and the local shops and restaurants can all play a part in choosing the right location for a hospital, clinic, surgery center, etc. It takes research and time to find a location that best fits each practice.
In a world that is increasingly focused on the healthcare experience, it’s important that medical professionals build or lease a facility in an area that fits the needs of their medical practices. For better or worse, location can impact long-term patient loyalty. So before a health system or physician chooses their next facility, they should first consider these specific factors:
Shops and Restaurants
Medical facilities near shops and restaurants offer significant benefits to employees and patients. Employees can run quick errands and grab meals on their breaks. And patients don’t have to travel far to pick up items at local shops or restaurants before and after their medical appointments. Shopping centers are even beginning to see the value of incorporating medical facilities in their buildings, adding an extra amenity to their customers. The more venues are near a medical facility, the more the physical location becomes an amenity for employees and patients.
Commute and Infrastructure
The infrastructure of a community can be the deciding factor for whether a medical practice can thrive in that area. As far as hard infrastructure elements are concerned, medical practices require adequate roadways and parking areas for their patients and employees. Large facilities may also need enough property to accommodate roads for emergency vehicles and substantial traffic flow.
Medical real estate practices that are interested in relocating should also consider factors like the community’s public transportation options and local, safe housing availability for patients. Large hospital systems that are interested in offering housing solutions to their patients should also research the community’s ability to support the power, sewer, and water systems for these buildings.
Medical Districts
Medical districts offer a range of medical offices, surgery centers, hospitals, and other medically focused businesses in one general area of a community. These districts provide quick commute times from one medical office to another, which is very convenient for the patients. In one case, a medical district in Illinois even added another level of convenience for patients by making it the first “smart medical district” in the nation. A few of the basic improvements include transportation, 5G technology, and public Wi-Fi. A medical district like this one could be a significant benefit for a growing practice. Health systems or medical professionals should research the medical district or zoning requirements in the communities where they are looking to buy or lease their properties.
Rural Communities
Rural communities are often in need of medical facilities. However, their smaller population sizes and limited infrastructure can create challenges for medical practices. Medical professionals should consider the needs of a practice and creatively manage their risk before purchasing a facility. In some cases, smaller medical practices or Freestanding Emergency Departments (FEDs) can be the best fit for a rural community.
Location is the first of many decisions medical real estate stakeholders are responsible for. Commercial real estate is not only one of the most costly investments a business owner can make, but it has the potential to impact other business decisions. Medical real estate advisors are skilled in guiding healthcare clients through the buying or leasing process. The HBRE team has years of experience in assisting clients with site selection and market research. Partnering with the right team of medical real estate professionals will make all the difference in choosing the right location.
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.
