Physician Office for Rent - Why Should You Lease A Property For Your Medical Practice?

Leases are easier to obtain and have more flexible terms. Perhaps, this is why it’s preferable. So, why should you lease a property for your medical practice?

If you’re starting a new medical practice, you might be wondering whether you should buy or lease medical office space. 

Why Should You Lease

Leasing a property can be a significant benefit if you need to negotiate a longer payment plan to lower your costs. However, you have to know that there is no universal solution.

Medical Clinic For Lease

To move into a leased space, you don’t need to make a down payment. A physician office for rent allows you to tie up a lot less of your money. You’ll only be required to pay upfront fees for an attorney, a broker, a release inspection, and a security deposit. When you buy a property, you must either pay cash or take out a loan to finance it.

Healthcare Real Estate must consider stringent technological and regulatory standards too. Even building maintenance tasks like cleaning, heating, and cooling are handled differently in health care. Especially with the current global situation,  sterilization and filtration is an integral part.

So, what are medical offices for? What makes them different from hospitals? Medical offices or clinics may be used for office examinations and consultations, or even for the treatment of patients. Ideally, a physician’s office for rent should allow you to provide routine, preventive, or non-emergency care.

Medical Real Estate: To Lease or To Buy?

Medical facilities are built differently from other real estate properties. A medical facility’s internal layout mosst likely needs multiple rooms.  It usually has an open floor plan.

Compared to a hospital, medical offices are typically smaller in size and have a smaller pool of employees.

So, why should you lease a property for your medical practice? Well, it is considered to be a traditionally safer option.

As a medical practitioner and business owner you have more control over occupancy costs and a better chance of long-term appreciation. However, it is critical to understand both the local market and your career timelines before making a decision.

In the end, a physician office for rent can be a much cheaper — not to mention a safer option, especially over shorter amount of time.

 

The Benefits Of Leasing Medical Office Space

What are the pros of leasing a medical office space?

Opportunity for a great location

Probably one of the best parts of a physician office for rent is that you are giving yourself a chance at a property for your practice —even if it is too expensive to purchase. This allows you to establish your medical practice in a prime or strategic location.

Leasing your medical office space allows you to be in a desirable location with a positive image, which is important for some medical practices. Leasing medical office space in these high-traffic areas is usually much less expensive than purchasing. You can choose a place like Chino Hills in San Bernardino County.

More liquidity

When you sign a lease, you do not need to make a downpayment to move into the space. This results to more liquidity. Liquidity refers to the ease with which an asset, or security, can be converted into ready cash without affecting its market price. Cash is your most liquid asset, on the other hand, tangible assets are less liquid.

By leasing, you can tie up significantly less of your money. At most, you might expect to pay upfront fees for an attorney, a broker, a release inspection, and a security deposit.

Fixed monthly cost

Generally, you will not be required to pay for any significant maintenance, repairs, or upkeep to the property during the term of the lease. Although minor repairs are likely, you will know exactly how much you must pay each month. You won’t have to worry about unexpected, high-priced repairs.

Choosing a Physician Office for Rent can give you Tax Breaks

You can deduct lease payments, property insurance, property taxes (depending on the lease type), utilities, and maintenance as they are incurred. In contrast to the interest-only deduction for a mortgage, you can deduct the entire lease payment.

There are Increased Options & Flexibility in a physician office for rent

It can be much easier for you to qualify for a lease. This is especially true when it comes to qualifying for a commercial real estate loan. When it comes to selecting a space, leasing gives you more options. Furthermore, you are not required to sell your space when your lease expires.

Securing practice space is a significant decision. First, weigh all of the risks and benefits of both options.

The Benefits Of Leasing A Medical Office Space

Securing practice space is a significant decision. First, weigh all of the risks and benefits of both options. When you sign a lease, you do not need to make a downpayment to move into the space. You can tie up significantly less of your money.