Medical real estate is typically not the first sector that comes to mind in the broader scope of commercial real estate. Large skyscrapers, office buildings, or hotel properties are the glistening focal point of the industry. And yet, as current events have revealed, medical real estate is one of the most necessary property types in the country.
The major challenge is that medical real estate management adds to the weighty task of running the day-to-day processes of a healthcare facility. And that burden grows exponentially for large health systems who own multiple practices outside of a single hospital property. Many health professionals face an overwhelming list of commercial real estate (CRE) tasks, which could take time and resources away from patient care.
To preserve resources and maintain a health-based focus, many health systems choose to hire a healthcare real estate advisor. These advisors can handle the responsibilities associated with CRE and relieve the health system of that portion of admin work. While medical real estate advisors offer many benefits, here are the five major advantages:
1. Hiring a medical real estate advisor saves time.
Time is arguably the most valuable resource anyone has. Face-to-face meetings, lease negotiations, building updates, constant emails, managing a running list of tenants, changes in CRE legal requirements, etc., all have one thing in common: time. Each one of those tasks takes a substantial amount of time that health systems, landlords, and tenants don’t typically have to spare. Medical real estate advisors dedicate their time to handling all of those tasks for their clients.
2. Medical real estate advisors have expertise and experience within the field of commercial real estate.
In the same way a commercial real estate advisor shouldn’t be expected to perform surgery, health systems don’t need the stress of handling real estate tasks. Medical real estate advisors have the education and background for handling medical properties. They have worked with industry professionals and commercial financing teams, and they understand how to interpret or restructure commercial contracts. They have their clients’ best interests at heart and understand how to help them reach their CRE goals.
3. Medical real estate advisors are up-to-date on market information.
Before any deal is structured, tenants and landlords should know the fair market value of a medical property. Since medical real estate is a medical advisor’s sole focus, they stay up-to-date with this kind of market information. They also have the resources to verify those numbers and ensure a health system complies with Stark Law.
4. A landlord won’t have to worry about finding tenants.
Like other types of CRE advisors, medical real estate advisors show properties to potential tenants. Medical advisors know what specific elements to address for potential healthcare tenants. They view the facility in terms of the space available for medical equipment, storage options for medical supplies, and they even review the facility layout. They also have connections and resources to spread the word about vacancies to find the right tenant for each property.
5. Health systems and tenants can maintain a healthy relationship.
The purpose of the relationship between the health system and a medical practice is to improve patient care, implement innovations, and share best practices. The topic of healthcare should remain at the center of the tenant-health system relationship. Medical real estate advisors alleviate the issue of lease negotiations so that health systems and their tenants can maintain a healthy relationship.
Medical real estate is a niche market. Health systems or medical property owners should hire CRE professionals who understand the unique aspects of the healthcare industry. HBRE advisors can provide the necessary CRE benefits to a health system. To learn more about the services we provide, reach out to an HBRE medical real estate advisor: https://hbre.us/staging/7534/connect/.
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.
