The $uccess Formula
Central Florida Doctor|September 2020
For Medical Practices, Lease Negotiations Go Beyond Location
TIM CRAIG
The $uccess Formula

THE CLASSIC ADAGE in real estate is “location, location, location.” However, for small medical practices looking to lease, renew or purchase, it can be a little more complicated.

“Leases and lease renewals are not typically conducted on a level playing field. After all, the landlord is in the real estate business and most doctors are not,” says Tyler Harris of Carr Healthcare Realty in Orlando.

“Successfully negotiating is more than bartering, bluffing, or asking for a good deal. When done properly, a well-negotiated lease can have a dramatic impact on your practice’s profitability.”

When it comes to location, a little research is in order when looking where to establish a practice, according to Dirk Klapprott of Lorio and Associates in Lakeland. “You have to consider the patient population in the area,” he says, “and going beyond demographics, a person should consider the types of insurance that the potential clients in the area may carry.”

The location decision goes beyond the potential patients in the area to other, indirect considerations, says Maria Mahoney of The Mahoney Group in Lakeland. “By and large, a physician’s office is a destination and your patients will find you,” she says. “But nothing beats signage and visibility that you can trade against your marketing costs; that is important.”

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