For a lot of small businesses and companies buying office space is not a good idea, however if you are a physician purchasing your medical office space might be one of the smartest things you can do.
Once a physician chooses their medical office location they typically stay there for at least 10-20 years for several reasons:
- Medical build-out costs are typically very high
- Moving could potentially cause them to lose a patient base that took them years to build
- The cost of moving and building out a new space is a huge financial commitment
If medical professionals are going to make such a long commitment they should really consider purchasing their own space. Not only will they be able to control the overall costs, there is also potential earnings from the commercial real estate appreciation, build up of equity, and real estate interest and tax write offs.
Additionally, when the physician retires they can lease out their medical office space to another physician, thus creating an extra source of retirement earnings.