- Medical tenants can be ideal because they are financially stable, well connected and maintain the premises
- However, they may need instant attention if something goes wrong, due to the nature of their business
Medical tenants are known to be ideal commercial property occupants because they are often financially stable, maintain the facilities in ideal conditions, and are well connected within the medical circles, leading to high-quality referrals for the managing agency.
Savvy business owners
Medical tenants can offer a property investor a steady, predictable income. The business owners of medical practices are often well-informed, savvy business owners.
When an investor owns property that is ideal for a medical practitioner, a unique client-supplier relationship is formed, rather than a tenant-owner relationship that we see with many other commercial investment properties. This fact is a significant advantage when it comes to building a relationship with the occupants.
Long term leases
Medical tenants often enter into longer-term leases or shorter-term contracts with many options. The fact remains that medical tenancies do not move premises that often, and they enjoy staying at their current location. Because of this ground rule, property investors have all the fundamentals to start a long term business relationship with their client, the property occupant.
Respect for their business
Medical centres and businesses deal with contentious and sometimes life-threatening situations.
Keeping the property in a good and clean condition is a priority of the property manager, the investor, and the occupant. Urgent attention to repair and maintenance is required when reported.
If the tenant reports a roof leak in an operation room, the situation must be attended to within hours to ensure that the room can be used again for operations.
It might mean that there exists the requirement for additional attention and repairs in due course, but the equipment and patients must be the number one priority of both the occupant and the property investor. Having this mutual understanding will assist in building a long term and fruitful relationship.
My experiences
As a commercial property manager with a strong background in medical tenancies, I can confirm that all leasing experiences with this industry niche have been ideal and high-yielding for the client and the agencies concerned.
Throughout my career, I have worked with the following types of tenancies within the medical field:
- Vets
- Hospitals
- Medical centres
- Dentists
- Physiotherapists
- Pathology centres
- Nursing and age care providers, and
- Pharmacies
All the above types of tenancies have been a delight in business dealings, negotiations, liaison, dispute resolutions, inspections, and many other aspects.
If you are looking to invest in commercial real estate, then securing a property suitable for – and possibly already occupied by – a medical practitioner might be a sound investment. However, always obtain independent legal and financial advice before committing.
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