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By Jeff Grandfield and Dale Willerton—The Lease Coach

Healthcare tenants should not be afraid to negotiate assertively on the rental rate. So why do healthcare tenants have such difficulty in this area?  Frequently, the answer is a simple unawareness of market rental rates (or the “going rate” in an area).

Let us explain. Suppose the leasing agent or landlord wants you to pay $25 per square foot on new lease space (or even on a lease renewal). However, you know that every other tenant in the building is paying rent ranging between $18 to $20 per square foot. Armed with this information, you would have no difficulty justifying your negotiations would you?

Healthcare tenants often mistakenly believe that the agent or landlord wouldn’t dare ask for more rent than the space is worth. Consider that the landlord is paying the leasing agent commission not just to lease the space, but to lease it for the highest rent possible – and to the best tenant available. Commercial landlords justifiably want to maximize the return on their real estate investments, which is entirely acceptable.

Here are eight strategies for lowering the rental rate on commercial leases: [Read more…]

By Jeff Grandfield and Dale Willerton

For many healthcare tenants, negotiating a good lease or lease renewal against an experienced agent or landlord can be a challenge. While a doctor focuses on proper patient care, savvy real estate agents and brokers are specialized sales people. Their job is to sell tenants on leasing their location at the highest possible rental rate.

As explained in our new book, Negotiating Commercial Leases & Renewals FOR DUMMIES, tenants may go through the leasing process only two or three times in their entire lifetime – yet they have to negotiate against seasoned professionals who negotiate leases every day for a living. Negotiating appropriate leasing terms is vital for a doctor as the amount of rent he pays will directly affect the practice’s financial bottom line.

Whether you are leasing a new location for the first time or negotiating a lease renewal for your practice, these are some money-saving tips for healthcare tenants: [Read more…]

$22 million project to be completed in late 2019

Today, Conemaugh Health System ceremoniously broke ground on a comprehensive outpatient center in Ebensburg, Pennsylvania. Community leaders, elected officials, health care providers and hospital supporters gathered to watch the first dig marking the beginning of construction for the facility, which is made possible by a $22 million investment from Duke LifePoint Healthcare.

“We are thrilled to break ground on this new outpatient center, which will provide high quality and patient-centered care close to home for those we serve in the Ebensburg community and surrounding areas,” said Bill Caldwell, Market President of Conemaugh Health System. “Today, we take another exciting step in advancing our mission of Making Communities Healthier, and we look forward to seeing this important project come to fruition.”

The new Conemaugh Ebensburg Outpatient Center will be a 40,000-square-foot facility featuring advanced diagnostic imaging services, including computerized tomography (CT) and magnetic resonance imaging (MRI); women’s health services; a primary care clinic; specialty care services; rehabilitation services; and MedWELL urgent care and corporate care services. It will also feature space for community education programs and events. [Read more…]

By Jeff Grandfield and Dale Willerton 

Readers of our new book, Negotiating Commercial Leases & Renewals FOR DUMMIES, will learn (in-part) that Common Area Maintenance (CAM / Operating Costs) charges for tenants come in two flavors: honest mistakes or dishonest calculations. In a building where the property is fully or close to fully occupied, the landlord may have less reason to try to profit from Common Area Maintenance charges but may still try to enhance the property with the tenant’s money.

When a commercial property has several vacancies, the landlord, typically, will be responsible for paying his proportionate share for the vacant units. Some landlords try to avoid paying for any of the CAM charges on the vacancies by adding language into the lease agreement that spreads out the obligations for the vacant spaces amongst the current tenants. In some situations, physician tenants can be carrying a very heavy financial burden if the property is not fully leased.

Ideally you are or were able to negotiate concise and reasonable CAM language in your initial lease with your landlord. That said, even the most detailed lease may result in issues with CAM so communicating with your landlord (both verbally and in writing) about any CAM concerns you may have is imperative. And don’t wait too long to ask your questions because your lease may stipulate a statute of limitations on adjustments. Sometimes the problem comes from the property manager; however, at other times, it originates from the owner or landlord taking advantage of tenants. [Read more…]