If you have unexplained pain in your foot, chances are you’re going to seek professional help. Your general practitioner may have some thoughts on how you might find relief from the discomfort, but they’re not an expert in feet. You’re going to want to speak with an expert at distinguishing between the talus and the calcaneus. It only makes sense.
Consulting the right doctor for an ailment is essential. The same can be said for selecting a broker that will help you lease, buy or invest in medical office space. It is necessary to know what a broker does and know that they are not all the same. There are loads of different sub-specialties within the greater commercial real estate industry. Some professionals deal with industrial and warehouse space, while others specialize in multi-tenant housing, office buildings, retail space, or shopping centers.
Seek Out a Medical CRE Specialist
Every year, thousands of healthcare professionals, groups, and networks seek out space for their practices, clinics, or outpatient facilities. According to McKinsey, in the face of demand from the COVID-19 pandemic, this need is approaching an unprecedented level and that plays into the commercial real estate market. Last month here in Tampa Bay, GuideWell Emergency Doctors opened their doors on North Dale Mabry Highway. Two weeks ago, Forest Hills Health Care Inc., a Tampa-based primary care practice, was acquired by Palm Medical Centers. In each of these instances and all of the other cases that occur throughout the U.S., the transaction’s goal is to serve patients better, but also achieve the most favorable terms in the commercial real estate transaction.
A commercial real estate professional specializing in healthcare can handle both lease and purchase negotiations for providers of every specialty and size. Whether you are renewing a lease, purchasing commercial real estate, starting your very first practice, or looking to open an ambulatory surgery center, being guided by a professional with the right expertise is essential. Gauging a broker’s skill set and experience, however, means knowing what to look for. Here are a basic set of services that every broker should provide.
Industry Experience
It’s one thing to work in commercial real estate, and it’s another to specialize in medical office space. While some companies claim to “also handle” healthcare, working in this industry requires specialized knowledge, proven experience, and an extensive network of tenants, owners, investors, managers, administrators, physicians, and other healthcare advisors and real estate experts.
Market Knowledge
A commercial real estate broker specializing in the medical space should know the market. Being familiar with locations, zoning, building regulations, and property values for medical facilities in the area is essential. A qualified broker will also explain local populations in terms of density, demographics, and foot traffic past proposed locations for a practice. These market variables each have an effect on the client’s bottom line.
Understands the Numbers
A healthcare CRE broker should be able to provide and explain detailed analytics for their clients. Calculations like cap rates and net operating income, and comparison or fair market value, are not always intuitive. A quality representative will be comfortable explaining these and illustrating where the math works in the client’s best interest.
Skilled Negotiator
During negotiations, even minute changes to contract language can change the final deal. A broker worthy of the client will be able to sift through this granularity and advise clients on the meaning and impact on their practice.
Someone Who Cares
Not unlike the medical profession, healthcare real estate is built on relationships. A broker demonstrates investment in the client by providing the time and resources required for a project. Excellent communication skills and follow-up should also be ever-present.
Since 2005, Healthcare Realty Group has engaged the specific needs of the healthcare industry and knows how to deliver solutions with real benefits. Unlike the mega-firms that try to be everything to everybody, our team provides personalized and ethical services focused on your healthcare real estate needs. Contact us today for a no-obligation consultation on your healthcare real estate needs.
This article originally appeared in Healthcare Realty Group’s March 2021 newsletter. References to recent events and property listings reflect the original publication date and may no longer be current.
