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Tips For Leasing Medical Real Estate

Evaluate Compliance and Zoning

Medical practices have specific zoning and regulatory requirements. Ensure the property is zoned appropriately for your type of medical practice and confirm it meets all local, state, and federal health regulatory codes. Check for necessary certifications, such as ADA accessibility, parking requirements, and fire safety compliance. It’s critical to verify these elements before signing a lease, as non-compliance can lead to costly renovations or even prevent you from operating.

Assess Plumbing, Electrical, and HVAC Capacity

Medical facilities typically require more robust plumbing, electrical systems, and HVAC than standard office or retail spaces. Examine the building’s infrastructure to confirm it can handle the load of specialized medical equipment, imaging machines, or surgical suites. Look for features like backup generators, specialized exhaust systems, and the ability to install lead-lined walls or exam room sinks if needed. Upgrading these systems after the fact can be expensive and disruptive.

Negotiate Tenant Improvements and Use Clauses

Medical users often require customized buildouts, such as waiting rooms, exam rooms, and procedure areas. Negotiate for a tenant improvement (TI) allowance from the landlord to help cover the buildout costs. Also, pay close attention to use clauses in the lease—some landlords restrict the types of procedures or specialties allowed in their buildings. Make sure your specific services are permitted, and look for exclusivity clauses that prevent competitors from leasing nearby space within the property.