While co-working is no longer a new concept for entrepreneurs or traditional business employees, it is now becoming a relevant possibility for another industry: healthcare. Now, outpatient medical professionals are beginning to see the advantages of co-sharing spaces. This new co-working model may soon spread across the nation.
What Is Co-Working
Co-working models have been around since the late 1990s, and more contemporary co-working models emerged in the early 2000s. These concepts invite entrepreneurs and employees from any industry to come work inside their facilities, use several office-related amenities, and share ideas with the general co-working community. Unlike large commercial facilities, co-working spaces do not have long lease time frames. Those who plan to work in these facilities can pay by the day or by the month, providing more flexibility for their workspace requirements. These spaces are especially helpful for those who work from home, corporate employees who are traveling, entrepreneurs who are starting their businesses, or small businesses who need to raise capital for their own commercial office.
Co-Sharing Workspaces in the Medical Sector
Many outpatient facilities house the same basic elements—a front desk, a waiting room, patient rooms, and rooms for medical equipment, such as an x-ray machine. Collectively, these elements are quite costly, with the most expensive long-term cost being the monthly rent to lease a facility. New physicians or medical professionals who are interested in starting a private practice find it difficult to cover these costs while still developing their patient bases.
Now, a few companies have identified these basic elements and created their own versions of medical co-working spaces. MedCoShare is a prime example of this new healthcare co-working model, offering flexible, rentable spaces to physicians. In their model, physicians can work whatever schedule works best for them, including a few half-days per month or even full time. MedCoShare pays for utilities, buildouts, and other real-estate-specific costs, and they even provide common medical equipment. The physician only has to pay a monthly fee.
HealCo is another example of co-sharing office space, with more of an Airbnb take on medical real estate. Under their model, healthcare facilities can temporarily lease their space in a time-sharing fashion. Existing medical offices with extra space can capitalize on allowing another physician to come temporarily share their facility.
The Future of Medical Co-Sharing
The pandemic led to job uncertainty for many in the healthcare industry. But for some, medical co-sharing may be a promising alternative. As medical professionals look for ways to use their skills outside of the traditional medical system, some have chosen to start their own businesses using these co-sharing spaces. As an added benefit, these medical entrepreneurs don’t have to worry about paying a long-term lease during a potential shutdown.
There is some speculation that as businesses review their commercial footprints, they may choose to downsize their square footage. Landlords may begin to face fresh vacancies. But medical co-working spaces provide an opportunity for building owners to create short-term lease options.
Is Co-Sharing Medical Space a Viable Long-Term Option
While co-sharing a medical space may be beneficial for a start-up medical group or for a physician who is moving to the private sector, it isn’t a viable long-term option. Many health professionals grow their practices over time and begin to require additional space for in-house staff, specialized treatments, or an increasing amount of patients. They will eventually need to move into a facility that can cater to the individual requirements of their medical group, rather than one that temporarily facilitates the needs of a start-up practice.
Established medical groups or large health systems will need to continue to run their healthcare practices in one or more of the four types of medical real estate buildings. And because of the size of their practices, many will need to outsource their healthcare real estate needs to commercial advisors dedicated to healthcare real estate. HBRE is familiar with a wide range of medical real estate negotiations and transactions. For those who are considering how they can best fill a medical vacancy or those looking for a facility that can meet their needs, HBRE can provide professional medical real estate services.
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.
