medical office building

[Bharath Siddarth]

Hi all,

I found a medical office space in Laurel, MD; 6 units with1500 square feet each unit; I will be using 3500 square feet for medical/dental practice; planning to rent remaining 5500sft;

a) few buildings away there is new university medical office building being built and will be ready by october 2021; they have 50 spaces available and will be having medical practice obviously (similar to my practice); Is it bad idea to buy this property? 

b) what are alternative uses of this office space? who would be my target tenants?

[Bennet Sebastian]

@Bharath Siddarth what’s your cost per square foot on the building you are buying and how old is it? If it is not too old and you are able to buy it for less than the cost of new construction then you can charge a lower rental rate and be somewhat protected from the new competition. If all the units are medical then it only makes sense to target other medical practices, specifically ones that are complementary to yours.