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Practice rooms and practice real estate – guide for renting and buying
The term practice is used to describe the workrooms of a practicing physician, a medical care center, the practice areas of physiotherapists or speech therapists, but also the practice rooms of lawyers and tax consultants. When searching for commercial real estate, practice real estate is often found in the same category as office real estate. The following overview shows what needs to be considered when searching for medical practices as well as practice properties for lawyers:
What types of practice real estate are there?
Since practice real estate is used, for example, by doctors, physiotherapists, lawyers or tax consultants, there are numerous different types of practice space. In addition, practice real estate is usually listed with office real estate, further increasing the versatility of practice space. Basically, two common types of practice real estate can be identified. On the one hand, medical office space is often offered for rent or purchase as a medical practice. In these cases, the existing practice inventory with furniture is often included in the rental price or purchase price. Or it can be taken over by a so-called distance payment from the previous tenant or owner. On the other hand, potential practice spaces for lawyers or tax consultants are often classic office spaces, which are then referred to as practice properties due to the use of certain professional groups.
Where can suitable practice real estate be found?
Practice rooms are generally traded and rented as office space. Accordingly, they are often located in commercially used buildings or parts of buildings. Sometimes, however, private apartments can also be converted into practice rooms. In addition to the conventional form of practice rooms, there are also so-called outsourced practice rooms. These can sometimes be of a mobile nature, such as special assistance mobiles for the homeless.
Location of practice rooms
Practice rooms with a medical orientation are very common in cities. As a rule, it can be said that the larger the city, the more closely meshed the network of medical practices in order to maintain medical care at a high level. Accordingly, there is a large supply of independent practice real estate available in residential or commercial buildings. For practice real estate with a medical orientation, health centers or doctors’ houses are also available. These are often located in central areas with good transport links, so that a wide range of medical services can be offered in a single complex. Premises for lawyers or tax consultants are usually available throughout the cities. Commercial space, such as in inner-city areas, can predominate. However, the supply of practice space is also very good in districts and neighborhoods characterized primarily by residential buildings.
Researching suitable practice space
Potential practice areas can be researched in a variety of ways. The Internet is a particularly quick and uncomplicated way of doing this. The offers of practice areas and city maps provide a comprehensive overview of available practice areas and their location. In addition, it is easy to find out online how many other practices are located in the area. Other options include independent on-site research or hiring a broker. Regardless of which option is chosen, it should always be clearly determined in advance of the search for a suitable practice property how much space is required and within what cost range the practice rooms should be.
Practice rooms with medical orientation
The design of practice real estate in line with the medical orientation can be done individually if the practices are rented or purchased without practice furniture. Practice rooms are rented by free-practicing physicians or therapists and thus, to a certain extent, used as commercial premises. Often, several doctors join together to form a group practice in order to save costs and effort. The equipment of the practice room depends on the physician’s specialty. Sometimes daylight is preferred, for example for psychotherapy, in other cases the rooms can be windowless, for example if patients are physically examined in them. The size also varies depending on the type of treatment.
Practice without medical orientation
The offer is particularly diverse for practice properties that do not have a medical orientation. This is because tax consultants or lawyers can rent or buy the right practice from the office properties on offer based on the required practice space and location. The selection of suitable premises is large and offers, for example, both small practice rooms for independent tax consultants in sole operation or large-area rooms in prime locations for renowned law firms with many employees.
Practice rooms: rent, purchase or lease?
Depending on the individual initial situation, practice real estate can either be rented or purchased. Leasing a practice is a third, rather rare option for opening and operating your own practice. Each of these options offers advantages – ultimately, whether a practice is purchased or leased depends largely on one’s own ideas and wishes.
Renting practice real estate
Practice real estate is often rented, for example, if the doctor or tax consultant opens the practice alone and with only a few employees. But large practice complexes are also often rented if this offers advantages over buying. One advantage of renting, for example, is the relative flexibility. In the case of medical practices – as with commercial real estate in general – a term is often agreed in the lease. This can be five to ten years, but can also be less. Since leases can be freely structured, this is a matter of negotiation with the landlord. For founders or young professionals, renting is an option to keep the financial risks with a rental practice in check. In order to rent a practice, the same documents are required as for office space.
Buying a practice – an investment for the future
Buying a practice is a far-reaching financial decision. And this is just as true for smaller practice properties as it is for large practice properties. Therefore, as with other real estate objects, the financing should be planned in detail. Depending on the practice property, the premises can be acquired as an investment property for the future or equally for self-use. This depends on the location and whether the practice may be used as living space. It is not uncommon, for example, for practice groups to purchase and operate a practice property together.
Is it possible to lease a practice?
Leasing practice real estate is rather atypical. The reason for this is the fuzzy provision resulting from a lease agreement. This is because the essence of a lease agreement is that, in addition to the real estate for use, the enjoyment of the fruits of profits is equally granted. However, the transfer of patient bases or client bases for a period of time is rare and not without problems. For this reason, offers of practice real estate for lease are a rare exception.
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