Are you familiar with the concept of tenant representation? In the commercial real estate industry, licensed realtors represent the interest of tenants in a purchase transaction or a lease.
This term is opposite to landlord representation, as landlord representatives act in the name of property owners and protect their interests. Tenant brokers act as advocates of lessees by providing them with market knowledge and guidance.
These professionals can be vital to healthcare practices and other businesses regardless of their industry and sectors. They facilitate communication with lessors, select suitable properties, negotiate the best terms, simplify the real estate process, etc.
Read more about each benefit in detail.
Healthcare practices stand to gain from tenant representation by using the expertise of these brokers. Searching for the most suitable real estate solution is usually challenging and time-consuming, particularly for providers in charge of managing all aspects of their healthcare practices. Tenant brokers rely on their expertise to find the most appropriate property option for their clients and negotiate the best terms possible.
Moreover, these professionals perform various tasks to assist their clients, such as helping them decide whether to renew their leases or opt for relocation.
Their job is to investigate available properties by scheduling property inspections and tours. Tenant brokers are knowledgeable enough to answer any questions related to leasing terms.
Communication with landlords
Another advantage of hiring healthcare tenant representation is the communication these professionals establish with landlords. When looking to rent medical office space, many healthcare professionals come across insufficient cooperation with landlords, as most fail to answer their phone calls. Some of them hire the services of landlord brokers due to being overly busy.
In most cases, landlord brokers are more interested in collaborating with fellow brokers than answering phone calls from individuals. Hence, by having a tenant representative, you will be more respected in the communication with landlords.
Experienced representatives are usually familiar with most leasing brokers and have already established professional relationships. Tenant representatives take the role of buffers between lessees and lessors so as for their clients to develop a professional relationship with current or potential landlords. They can use their industry connections to gain insights, otherwise unavailable to lessees.
Choosing suitable properties
Another essential advantage of hiring healthcare tenant representation is receiving assistance in choosing the best medical space. When looking for available healthcare practice space on your own, you are more likely to encounter more challenges. During the site selection journey, healthcare professionals need to assess their needs.
When collaborating with a tenant representative, you will be asked multiple questions as part of the inceptive analysis, which these professionals perform to determine clients' needs. Businesses tend to look for medical office space for different reasons, such as growing, downsizing, etc. There is a wide range of considerations to be factored into leasing such a space.
The most important considerations include accessibility, parking, ADA compliance, biohazards, after-hour access, landlord access, and others. Regarding accessibility, it should have elevators, wheelchair ramps, and electronic doors for visitors of all disabilities to access the practice.
Parking is another vital consideration, meaning you should secure a certain number of parking spots. Since most spaces don't come with adequate parking, a tenant broker can assist you in negotiating a favourable parking agreement.
Negotiation of favourable lease terms
Healthcare lessee representatives can assist medical businesses by negotiating favourable lease terms on their behalf. These professionals calculate all the economic and non-economic market factors to provide companies with the best terms.
Some of the most favourable terms for lessees negotiated by their representatives include free rent packages, tenant improvement allowances, low lease rates, etc. Their market knowledge is crucial in securing the best terms and establishing a long-term relationship with their clients.
Make the real estate process simple.
Healthcare tenant representatives simplify the real estate process and provide companies with guidelines from its onset to its completion. Individuals who don't specialise in this field find this process challenging and complicated.
Nevertheless, your representative will handle each aspect of the journey, from assessing your needs to performing financial analysis. In the meantime, you can retain the focus on your business activities. You won't have to worry about the real estate process, as real professionals will conduct it.
Which businesses require tenant representation?
As far as healthcare practices are concerned, all healthcare practices and providers stand to benefit from hiring such services irrespective of the sector. This includes start-ups, established providers, group practices, sole practitioners, De Novos, etc.
Additionally, these experts create custom strategies to address the unique needs of healthcare professionals. The most established healthcare tenants representation professionals are invaluable real estate experts looking out for their clients' financial interests. They perform market evaluations, site selection, lease analysis, financial analysis, sale negotiations, lease renewals, etc. You can accomplish your business goals while being stress-free.
The bottom line
Such representation enables healthcare practitioners to get the most out of their medical space without wasting too much time and energy!