Episode Details

In this episode, Barbara and Colin discuss:

• How healthcare providers can save $100,000 on their next lease renewal.
• Top mistakes that health professionals tend to make in lease agreement negotiations.
• Pros and cons between leasing and buying and how to make that decision. 
• Choosing the best real estate professional to help serve your needs as a health care provider. 

Key Takeaways:

• The strength of you negotiating the best terms possible is predicated upon you having multiple viable options.
• It pays to get someone on your side who knows what they are doing. Medicine and health is your speciality – let a realtor help you with your real estate. 
• For a standard transaction, you should start 12 months in advance. Don’t wait until the last minute to begin negotiations or you are already starting on the backfoot. 

“If you have a lease renewal coming up, there’s as much opportunity for you to capitalize on that transaction as any transaction. All commercial real estate, if it’s done properly, it’s typically $100,000 – $200,000 that is on the table that is in play for either you to capitalize on or for you to lose out on.” —  Colin Carr

 Transcription

Barbara:         Welcome to another episode of Marketing Tips for Doctors. I’m your host, Dr. Barbara Hales.

Today, we have with us Colin Carr. He is the founder and CEO of Carr, the nation’s leading provider of commercial real estate services for healthcare tenants and buyers. Every year, thousands of healthcare practices trust Carr, that’s C-A double R, to achieve the most favorable terms on their lease and purchase negotiations. Colin has been involved in commercial real estate since the year 2000 and has personally completed over 1000 transactions. He is a licensed real estate broker in 10 states.

Colin lectures and trains thousands of healthcare professionals, administrators, business owners, students and more on an annual basis throughout the country. Welcome to the show, Colin.

Colin:             It’s great to be here. Thank you.

Barbara:         How can healthcare providers save $100,000 on their next lease renewal? That’s pretty impressive numbers.

Colin:             Yeah. That’s a big number but it’s a real number. And I think it starts with understanding how much is really at stake when people are doing lease renewals. Most people just assume that their lease rate is going to be close enough to the market, it’s going to be good enough. And what they don’t take into consideration is if your lease is off by let’s say $2 or $3 a square foot and let’s say you’re in 3,000 square feet of space, you take that $2 or $3 a square foot, you multiply it by your square footage at 3000 square feet, and all of a sudden you got $6,000 to $9000 per year mistake. You take that over a standard five or 10-year lease and it adds up to a substantial amount of money.

And what most healthcare providers don’t realize is that there’s a huge margin for negotiations on a lease renewal. It’s actually the #1 transaction in all of commercial real estate. And at the same time, the concessions that a new tenant would normally get like tenant improvement allowance, free rent, a ma