Please, Somebody Call a Doctor! Investing in Medical Office Space
There’s a saying “the only sure thing in life are death and taxes”. Though that’s true, there’s another, “people will get sick”, and in turn will seek out medical care. As real estate investors, that can be good news for you.
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Why? When physicians and other medical professionals lease office space, it’s a serious financial commitment. How many times have you gone to see a top notch “specialist” and when arriving at their office wonder why someone with such impressive credentials and reputation is tucked away in a less than modern building? Whether we like it or not, looks do matter, and patients like a doctor’s office that is modern, spacious, and puts them at ease.
Much of the reason physicians choose to stay in outdated space is due to the costs involved with moving their practices. It takes a serious financial commitment. However; once a physician makes the decision to move, they usually sign long term leases, and stay in their space for many years.
Those same reasons are why medical professionals should consider investing in their own space. If a physician is going to make the commitment, for multiple years, to a real estate contract they should consider investing in their own space.
Whether a condominium unit, or a medical office building, if the new space is located in close proximity to a major hospital, it can be a win/win situation. Not only does it allow a physician to control the costs of their space, and use, there’s additional potential for future earnings from real estate appreciation. In addition, when a physician retires, owning their space, they can then lease the space out to another medical professional, providing them with another source of retirement income.
Commercial real estate statistics show that even during the turbulent real estate market, the delinquency rate for general office space was around 9.2%, compared with 3.3% for medical offices.
Whether you are a real estate investor wanting a property that will be in high demand, or a medical professional wanting to invest in your own space, consider investing in medical office space.