Episode 103: Real Estate in Private Practice (with Colin Carr)
May 26, 2023
Buying or leasing office space can be tricky territory to navigate when you're already managing your practice on a day to day basis! It can be hard to determine whether you should lease or buy, how much space you will need depending on your practice size, and if you have intentions of growing your practice over the next 10+ years. Julie is chatting with Colin Carr, a real estate specialist who is here to answer our questions about real estate in the private practice world!
Colin Carr is the founder and CEO of CARR, the nation’s leading provider of commercial real estate services for healthcare tenants and buyers. Every year, thousands of healthcare practices trust CARR to help them achieve the most favorable terms on their lease and purchase negotiations. Colin has been involved in commercial real estate for over two decades and has personally completed over 1,000 transactions.
- How do you advise practice owners on the decision to purchase of lease office space?
- Ask yourself, "Can I see myself in the location/size of space for the next 7-10 years?" If not, it probably isn't a good time to commit to this large of a purchase. You can quickly outgrow a space, and don't want to be stuck stagnant.
- On the flip side, you don't want to over estimate the size of space you will need and end up significantly overpaying for space that isn't utilized. Commercial real estate is more specialized and a lot harder to get in and out of!
- When a practice owner anticipates growth in the next few years, how do you advice them to go about leasing a space?
- Steer clear of a long lease! While it is true that there are more favorable terms that go along with longer leases, you will eliminate the need to continue to negotiate your rate, and allow your business to move out of the space as it grows.
- If a practice owner is interested in buying an office space, what should they keep in mind?
- First, you want to determine if you are buying the space just for you and your business, or if you are buying a space that has multiple offices and can be used as an investment property.
- If you choose the latter, it's important that you look at your finances to ensure you can afford the space in the worst case scenario of not having any tenants to rent out the additional offices. Even if that scenario is rare, it's always important to be prepared!
LINKS & RESOURCES
GreenOak Accounting - www.GreenOakAccounting.com
Therapy For Your Money Podcast - www.TherapyForYourMoney.com
Profit First for Therapists - www.ProfitFirstForTherapists.com
Colin Car - www.Carr.us