Top 10 Factors That Doctors Weigh When Choosing Medical Office Space

SHANNON HERRING

Top 10 Factors That Doctors Weigh When Choosing Medical Office Space

As a commercial real estate broker who has worked with a number of physician groups as well as assisted in location and development of several free standing ambulatory surgical centers, I'm often asked what kind of features are important for physician groups looking for new office space. When dealing with any professional, it is important to understand the needs of their particular field in order to efficiently assist them in locating space that ideally fits their needs. Accordingly, I have developed my "top ten" most important factors when representing physician groups looking to relocate.

Affordability

The number one factor affecting doctors' decisions when deciding on medical office space is affordability. Recently, a large surgical practice in Orlando signed a long term lease for 30,000 square feet in a new mixed use development project in South Orlando at $17 per-square-foot. This new leased space will also include an outpatient surgery center on the premises. Before signing this lease, this same practice was offered the same amount of medical space closer to a major Orlando hospital for $25 per-square-foot. Why pay $25 per-square-foot when you can go down the street and pay $17?

Accessibility

Doctors are looking for access to major road arteries and highways so their patients can find easily them. If a doctor's office is tucked away somewhere off of Lake Destiny in the middle of Maitland Center their patient may have a more difficult time finding them and have to go through a maze of side streets to find their office. After exiting the highway, doctors expect their patients to make less than two turns to find their offices. After all, as a patient they may not be feeling all that good in the first place. Why make their plight any more difficult if they can't find their doctor?

Mixed Use Development/Modern Architecture

Often, physicians are now looking for mixed use development featuring more modern architecture. They want buildings that are appealing and inviting. Unless it is a very small practice the old one story stucco flat roof office building is becoming a thing of the past. Two new medical office building projects are Legacy Pointe at Metro West and The Fountains at Tivoli Place that are being developed in Windermere. These are two examples of prime upscale designs with the more modern office park environments that many physicians want.

Parking Ratio and Parking

Most professional office buildings have a parking ratio of two to three parking spaces per thousand square feet. With patients coming and going throughout the day, doctors need to have at least four to five parking spaces per thousand square feet to avoid overcrowding. Since parking can be tight in the downtown corridor, doctors often shy away from downtown medical space. Reserved parking is also a nice plus for key employees and physicians. Covered handicapped pick-up and drop-off areas are a real asset, especially if there are associated outpatient treatment facilities.

Shell Space vs. Used Space

Although shell space may cost more in the beginning, it will end up saving the doctor a lot of money in the long run. With new shell office space you can do space planning/ design work to fit your own needs and patient flow. This way you won't waste square feet. Used office space with existing layouts often can't be adapted without expensive demolitions and remodeling. While this can be accomplished, there still remains the potential for poorly laid out space that doesn't fit the needs required.

Proximity to Other Physicians

In a medical office building, doctors are often looking for proximity to other physicians who could inter-refer to each other. For example, a family medicine physician will frequently refer patients to other medical specialties such as cardiology or orthopedics. With the right synergy, all of the doctors are inter-referring and enhancing their practices.

Ancillary Services

After interviewing several doctors, the new buzz word is "Ancillary Services." Traditionally, hospitals were the main benefactor of many of these services. Ancillary services include MRI's, sleep labs, physical therapists, outpatient surgery centers, and imaging centers. Doctors are more recently looking for extra medical office space where they can install ancillary services and other diagnostic treatment areas.

Geographic Location

In the past, doctors needed to be close to the hospital to round on large numbers of inpatients and perform mostly inpatient surgeries. Now procedures are more frequently performed on an outpatient basis, and doctors can relocate their offices farther away from the hospital at usually lower lease rates. Many practices now have incorporated outpatient surgery facilities located at or nearby their office location.

Exclusivity

Willingness of the landlord to restrict leasing to other physicians of similar specialty in the same building is often requested. While many physicians view this as an important concession, it probably is not that important in the long run. After all, there is really nothing a physician group can do if a competitor wants to relocate across the street. This is probably more important in rural or less populated areas where a new hospital is being established.

Signage

Building monument or signage to distinguish your medical group or practice is an important feature. Local zoning laws often restrict the size and location of business signage in any given area, but often the developer can offer "top of building" signs for major anchor tenants.

Shannon Herring, a lifetime resident of Winter Park, has more than 9 years experience in the Central Florida commercial real estate market. In 2007, she was recognized as CitiSpace Orlando's "Top Producer of the Year" in addition to receiving CFCAR's "Circle of Achievement" award. Just this year, Shannon has been nominated for the Orlando Business Journal's "Top 30 under 30", Leadership Florida, Women Who Mean Business and the Top Women in Commercial Real Estate.