Owning or leasing commercial real estate (CRE) can be a daunting task. Finding the right type of facility, engaging in lease negotiations, and handling lease renewals are just a few of the many complexities involved in CRE. Even one or two real estate-related “to-dos” can easily and understandably become an added burden for a business owner. After all, many who occupy commercial buildings are experts in entirely different industries than CRE. And that is absolutely the case for those in the medical profession.
Healthcare professionals shouldn’t have to worry about learning the full scope of CRE tasks. They don’t have the extra hours it would take to sift through contractual details or research medical real estate terminology. Because of this, probably the most valuable resource that a healthcare real estate broker can offer is their time. However, several other significant reasons explain why a medical professional should not handle healthcare real estate without representation.
Rent Relief Issues
What happens to a medical real estate lease when a pandemic results in long-term shutdowns and an extensive loss in capital? It’s very likely that no one thought to ask that question before 2020. But expert medical brokers don’t have to know the specifics of future issues in order to prepare for them. Experienced medical real estate advisors know how to plan for the unexpected during the lease negotiation process. So in the event that something significant affects the terms of the original deal, they are prepared.
That’s why even pandemic-induced rent relief requests were not completely unfamiliar territory for medical real estate professionals. While the pandemic may have caused the topic to become more prevalent, rent relief is not an uncommon request within CRE. Medical real estate brokers are comfortable fielding questions about rent relief and can aptly communicate that request on behalf of their clients. A medical real estate broker is the middleman, allowing the tenant-landlord relationship to remain intact while still representing their client’s best interest.
How Medical Real Estate Advisors Benefit Landlords
Owning medical real estate can be financially beneficial, but only if the landlord can manage the asset well. A mismanaged commercial asset can result in long-term vacancies, outdated facilities, and ultimately a significant income loss. Medical real estate advisors relieve their landlord clients of many of the intricate CRE tasks, so their property can continue to thrive. They find commercial tenants, negotiate lease terms, review leases before they are up for renewal, etc. Their expertise helps their landlord clients avoid costly vacancies and allows the facility to remain profitable.
How Medical Real Estate Advisors Benefit Tenants
Without the help of a medical real estate broker, medical tenants could be overpaying for outdated facilities. Medical real estate advisors are careful to review all contractual details from the perspective of their tenant clients. They ensure the tenants are paying fair market value, and they even find ways to enhance the deal through tenant improvements (TI) or other means. They also communicate to the landlord on behalf of the tenant in a clear, professional, and concise manner. Their role is to help their tenant clients remain in the facilities and locations that best benefit their practices.
HBRE is a medical real estate practice that serves both tenants and landlords. Our experience and skill set extends to both sides of the negotiation table, so we are more than capable of managing the best deal for both parties. We help our clients find or fill their desired facilities, and we review leases well-before they are ever up for renewal to ensure they are still the best possible deals for our clients. We do what we do best so that our clients can continue to dedicate their time and energy to the medical field.
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], call us at 615-564-4133, or follow us on Linkedin.
