What Every Doctor Needs to Know...For many doctors medical office space ownership offers the opportunity to own and control their own space. Doctors typically purchase their medical office space on the same basis that home owners buy homes-owning is the first preference to renting. Once the doctor begins, the medical office space is brand new, the floor plate is like a blank canvas and can be created to the exact specifications.
MEDICAL OFFICE SPACE FIT:
Over the years, unlike monthly disappearing rent, equity and appreciation builds until the doctor owns the property mortgage free and clear. There are also no hassles with parking,landlords and complicated signage that greets patients in a typical downtown office building or hospital.
This property for the doctor my be the biggest asset; so buying a medical office space may be the smartest move for the doctor for many reasons such as, the landlord doesn't change, the rent doesn't rise and it can be a very good idea for a doctor, who is sure they want to stay put in the same space for 5-10 years.
Medical office space ownership can be very alluring to doctors on many levels. If a doctor can purchase a medical office space with 75% financing and it comes in relatively close to what it costs a doctor to rent, then your in the ballpark. With today's current interest rate rates being at an all time history low, purchasing a medical office condo financed over 20 years isn't costing the doctors anymore than leasing, in fact its costing less.
FINANCING YOUR MEDICAL OFFICE SPACE:
The financing for medical office building developments and medical office condos in general is a little easier to get financing for the acquisition of a medical office condo. Most lenders are more willing to make loans for owner-occupied doctors, if the doctor has a good credit rating there are bankers eager to lend. Local lenders say medical professionals are high on the list of preferred customers. What the banks are looking for is the doctor's capacity to repay the debt obligation through business and personal cash flow.
TIPS FOR DOCTORS BUYING THEIR FIRST MEDICAL OFFICE SPACE:
1. Does the location work? Look at the medical office condo in which you want to move to. Look at the opportunity carefully and ask if the property could be sold in 30 years from now as a viable entity in and itself.
2. Is there enough parking? Doctors should have at least 6 spaces for every 1,000 square feet.
3. Have an exit strategy. Take an extra 25% of space if you are thinking you may want to expand in the future.
4. Purchase extra parking spaces if you can, it will add value to the medical office space.