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Reasonable price for office rent

  • 1.  Reasonable price for office rent

    Posted 12 days ago
    Thanks to everyone's advice, I am ready to sublease (see link: Member Forum - Ideal Medical Practices)

    My question is how much to pay for a 12x12 foot office in an existing practice in the Summerlin, Nevada area.  I would only use the office for 2 hrs on Tues. and 2 hrs on Sat. since nobody knows about the practice yet and I have not marketed at all yet.  I would increase the hours as needed.

    I don't even know how to begin with this.  Would it make sense to look at rental prices for adjacent spaces and then calculate an hourly rate based upon a 40 hr work week?

    I will be working when the practice owner's practice is closed i.e 6:30-8:30 PM on Tues and on Sat when the clinic is closed.

    Any suggestions would be appreciated.

    Paul

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    Paul Reehal
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  • 2.  RE: Reasonable price for office rent

    Posted 11 days ago
    1 yes  it is just like puttin g your  house on the market  research"comparables"
    but
    2 How can you rent it for  part time? You need access to it to grow it Noone else  uses it right when you are not there  right? So you have to rent it full time
     That is  actuallly  good As you get more patients you are  all set to  see them  Mon or Wednesay or Friday  whatever.

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    Jean Antonucci
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  • 3.  RE: Reasonable price for office rent

    Posted 10 days ago
    I would offer another opinion to Jean's here - it depends what sort of practice one has as to whether full-time access to office space is required.  I could see part time office rental for a practice doing disability physicals, ADHD care, geriatric consultations, or even limited primary care with patients signing in their agreement that physician is available 24/7 by phone, but that concerns needing physical exam/lab/xray, etc would need to be filled by area urgent care/ED facilities and then have the doc be willing to coordinate follow up thereafter . . . 

    Further - that keeps initial investment low while the doc figures out how his business model is working, whether his services have a market, monitors the economy (and impact that may have on patients) in this "bubble" period, and see if growth can be achieved.   

    This may even be a side gig to other employment which helps cover the cost of a start-up practice, might even offer benefits which physician is hesitant to let go of until he's certain of revenue stream, etc. . . . 

    So I don't see a part time rental as a problem per se - - it really depends on what sort of practice he's envisioning this to be.  That being said, its important that his consent to treat documentation clarify with patients if there are limitations to services he's providing. . . . (though I'm not a lawyer).

    Deborah





  • 4.  RE: Reasonable price for office rent

    Posted 11 days ago
    If you call a commercial real estate agent they will be able to give you an idea of what the local "per square foot" rate is, and then I'd divide by how much you are using it.  That might at least give you an idea.  That being said, you want to keep your overhead as low as possible.  Is it a really nice space?  Are they handling your shredding/waste/cleaning of the area?  Are they covering the insurance, wi-fi, etc.?  All of these are things that add value to your rental and you would at least want to consider that in whatever you offer.  Did you discuss pricing at the time of negotiation?

    The other thing you could do is offer a percentage of your revenue as rent.  That way, as you grow, their income increases, but only proportionately.  That would incentivize the landlord to also send business your way.  

    Then, when you find you're bursting at the seams . .. you can decide what /how to proceed from there. 

    Good luck and keep us posted!  





  • 5.  RE: Reasonable price for office rent

    Posted 10 days ago
    I built out my space 12 yrs ago for more than myself. It took 4 years to find the right person. On the way I had several doctors, Podiatrist and dermatologist ask to sublease space. They all did two things that you are suggesting; one low balled the complexity of subleasing and in doing so the arrangement was tainted. Imagine subleasing a room in your house and saying; I only want to pay 1/2 because I'm not there the other time. You are asking to be in their space, space they have maintained and space that having people they make their livihood use as clinical space....to both the doctor and her clients this is not cold extra space no one is using....it's part of their lives. Low balling will get you a no thank you. Your success or failure depends on these relationships: there will be opportunity to grow. Take a small space and dedicate time to it as you do your growing venture. To much overhead is a killer and too little makes you look like you're not serious. Put family pictures in the wall, have some real plant in the room. This little space can be important.

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    Adam Schwarz
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  • 6.  RE: Reasonable price for office rent

    Posted 10 days ago
    My apologies I should provide more background information.

    My training is in family medicine and primary care sports medicine.  Currently I work full time in occupational medicine/urgent care Mon, Wed, Thurs, Fri so Tuesday and weekends are off.  I have no noncompete clause in my contract and other physicians in the practice work in their own practices, at a university, etc. and there is no issue.

    The practice I am starting will be primary care sports medicine only so essentially I will need a computer, printer/scanner, exam table, injectable steroid, lidocaine, syringes, needles, sharps box, dressings, sterile and nonsterile gloves, alcohol/betadine pads, stethoscope, reflex hammer, otoscope, bp cuff and thermometer and possibly braces/splints/crutches vs sending patients to local medical equipment store not far from the office.  I will rent a Philips Lumia handheld ultrasound unit to use for joint injections.  My wife has agreed to be my receptionist/assistant for now  That's the plan, in theory at least.

    Tues to Sat follow up may be too long for some cases but telemedicine office hours will be available in the evening to answer questions in between visits.

    Internet and exam table are provided / includedin the office space as well as cabinets for storage.  Another doctor will be renting the same office few days a week.

    The practice which is subleasing space to me is a group of naturopathic docs and my wife was a patient of the lead physician there so there is a relationship there but not a strong one.  I certainly respect her and her practice and do not want to lowball her but I do need to somehow come up with an offer.

    Thanks again for your very thoughtful responses and for the time you have spent reading my posts.

    Paul

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    Paul Reehal
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  • 7.  RE: Reasonable price for office rent

    Posted 10 days ago
    Our overhead for cam and space is about 4000/ month. We have six exam/offices so 800 a month would be right for the room alone.

    Put your pictures/diplomas ( secondary ) up on the walls and plants, you can do it!

    Adam Schwarz 
    Sent from my iPhone