How to Lease Medical Office Space

In most cases leasing medical office space is very similar to leasing office space suited for non-medical users, however there are a few things medical office users must consider and/or be aware of. If you need medical office space for rent in Austin give us a call at 512-861-0525

• Most medical offices use some sort of hazardous materials or creates biomedical waste.  These must be documented and approved by the landlord before signing a lease. A traditional professional office building may not be suitable for the disposal of biomedical waste.
• Medical tenants typically see patients after the normal business hours.  Non-medical buildings typically lock down around 6 or 7pm and are only accessible by tenants.  If a medical user leases space here the patients would have to call the office to be let into the main lobby.  If you lease space in a building like this make sure your patients have the ability to get into the building.  Otherwise lease an office where you will have your own entrance.
• Non-medical buildings typically charge for after hours hvac.  If a medical tenant sees patients after hours then it’s important to find a building where they have control of utilities, otherwise you will end up paying $15 to $25 per hour for after hours HVAC.
• Medical tenants have to adhere to ADA compliance and are more likely to have special access needs therefore must ensure the building and space comply. If a building is old it may be grandfathered in and not have to adhere to modern ADA rules.
• Access by Landlord – Traditional office leases allow the landlord to enter the space at anytime for repairs or to show the space.  Healthcare providers must limit the landlord’s ability to access the space to ensure the privacy and confidentiality of patients and patient records.
• Exclusivity – Healthcare providers sometimes want exclusivity and don’t want other similar practices to office in the building.  This would prohibit the landlord from leasing space to the competition.
• Medical office space build-outs cost more than traditional office improvements.  The need for plumbing, compliance with ADA regulations, special equipment, etc can typically cost a minimum of $50 to $60 sf.
• Medical office leases are typically at least 5-10 years.  Because of the high build out costs and inconvenience of relocating it makes more sense for them to sign longer leases.
• It’s important for medical office tenants to have control over the build-out and be able to hire it’s own contractor, architects, etc that have experience in designing and constructing medical office space.  Healthcare professionals know better than the landlord what their specific medical needs are.
• Relocation Clauses – Many office leases have clauses that give the landlord the ability to relocate you at anytime with notice.  Because of the time and costs involved in building out medical office space it’s important for you to negotiate against this.
• Medical tenants may have special use requirements so make sure those are discussed with the landlord upfront.

Leasing medical office space is a huge investment so it’s important that healthcare providers engage professionals that know the ins and outs of leasing medical space.  At Austin Tenant Advisors we specialize in tenant and buyer representation and have assisted many medical users in the search, selection and negotiating of medical office space in Austin.  We do not represent landlords, which means we have your best interest in mind….ALWAYS.  To learn more about us checkout our website.