Sure, you’ve thought about investing in commercial real estate, but have you specifically considered medical office buildings? This commercial niche has different requirements than standard office spaces. But the stability of the tenants makes it a very promising investment.
Don’t miss your opportunity to engage with this important business sector. Here are a few things you should know about investing in commercial medical space.
How Big Should a Medical Office be?
Not all office spaces are equal when it comes to serving doctors, dentists, and other medical practitioners. When deciding on the square footage of a medical office space, you of course need to take a number of things into consideration. Standard rule of thumb suggests that you need 1,200–1,500 square feet for the first physician and 1,000–1,200 square feet for each additional provider. Of course, the exact square footage needed will depend on the volume of patients the clinic supports, as well as the flow. A circular flow from the waiting room through the exam rooms and back around works best. Medical offices usually require a minimum of three exam rooms measuring roughly ten-by-ten square feet.
What Accessibility Features Should a Medical Office Have?
The Americans with Disabilities Act (ADA) ensures essential access to doctors’ offices, clinics, and other health care providers. When reviewing potential commercial medical space investments, it is imperative that the properties meet a minimum of requirements. This is less of an issue for newer constructions that were built to ADA standards. But the guidelines also apply to buildings built before the act went into effect in 1990, as well as existing buildings being converted for medical use.
Among the features to look for are:
- Doorways and hallways of sufficient width and grade to offer an accessible route to and through the exam room.
- An entry door for the exam room with adequate clear width (41.5 inches), maneuvering clearance, and accessible hardware.
- Space for appropriate models and placement of accessible examination equipment.
- Adequate clear floor space inside each exam room for side transfers and use of lift equipment.
What Other Factors Should You Consider before Investing in a Medical Office Property?
As with all real estate decisions, one primary factor to consider is “location, location, location”. Does the space serve an appropriate population density with the right patient population and demographics. And practically speaking, is there enough parking space and road visibility at the site?
Another thing to consider is whether there are other major medical centers in the area. While at first glance you might assume that “competing” medical centers would lessen the value of your investment, in many cases the opposite is true. Areas with major medical centers tend to have more healthcare related activity and needs for services. Plus, as existing providers expand their services, there will be more need for nearby properties like yours.
Are Medical Offices a Good Option for Commercial Real Estate Investors?
Many commercial real estate investors find medical office buildings to be an attractive investment—including doctors! After all, there is an inherent stable need for medical office space in every community. Medical practitioners tend to be stable tenants who provide steady cash flow, even through recessions. And the potential for appreciation of these spaces is great. However, medical offices do require higher upfront construction costs and may require extensive renovations if any regulations change over time.
Like any investment, there are pros and cons. But with a little knowledge going into your decision, you can be confident in your investment.
Ready to Invest in Commercial Real Estate for Medical Offices?
Does this answer all your questions about what to consider when investing in commercial medical space? Begin your commercial real estate search today!
NAI Beverly-Hanks continually strives to be the best in the business and provide you with the expertise you need. Contact us today to speak with an NAI Beverly-Hanks agent about finding the perfect properties for your commercial investment goals.