New Medical Office Trend To Build From Scratch
Spaces & Places | By: Kenneth A. Weston
Should physicians consider office condo ownership?
As commercial developers become more knowledgeable in developing and marketing office condominium projects, the concept is becoming increasingly popular.
The reasons are quite understandable. Examples of some of the benefits include:
- Freedom from Landlords: Control over present and future office expenditures. Once you own your office, you are free from rent increases and negotiation of lease renewals.
- Tax Benefits: When taking into account tax benefits such a mortgage interest and depreciations, owning office space may be more economical than leasing.
- Equity Build-up: Unlike the tenant who pays rent and has nothing to show for it, the owner builds up equity in his office by reducing the principal on the loan balance through monthly mortgage payments.
- Appreciation: If the investment is a sound one to start with, chances are the office will increase in value over a period of years. Investment in interior improvements can be recaptured at sale rather than lost as in leasing situations.
- Autonomy: Owners have the freedom to customize space and add amenities to suit their specific needs.
What should you look for in an office condominium?
- Location: Physicians rank location as the key to their purchase decision. Office condominiums near hospitals are a prime location. Projects in areas of rapidly developing suburbs are creating a boom in the industry, especially when they are in close proximity to the physician's patients.
- Reputation and Track Record of the Developer and Marketing Company: This usually determines the success or failure of a project both in the short and long term.
- Quality of the Building.
- Parking: Is the parking adequate to meet the needs of a medical office building?
- Flexibility of Space: Are provisions made for future growth? Most physicians who plan to expand are encouraged to purchase more space than they need initially, and lease it out until needed. Should relocation become necessary, the office can either be sold or leased.
- Building Design
- Quality of Surrounding