Choosing the right location for your medical practice is important, but so is the choice of whether to buy or rent an office space. Depending on your specific needs and business objectives, there are advantages and potential disadvantages to both options. For example, buying a building or office space can help you build your wealth, but it can be risky and may not be as advantageous as renting the space instead.
So, which one is right for you? Here are a few important things to consider before you decide.
Factors to Consider When Buying or Leasing Medical Office Space
Before you buy or rent medical office space, weigh these key factors:
- Cost and Business Expenses – With leasing, you don’t need as much money upfront. Typically, you will just need to come up with the first month’s rent, a security deposit, and any tenant-improvement costs. Of course, your monthly rent is variable and could change when the lease is subject to renewal.
Purchasing your practice location involves a larger initial investment, which could include loan fees, building inspections, an appraisal, and other initial costs, but the advantage to it is that your monthly payments will be fixed.
- Tax Advantages – If you own your medical office space, you may be able to deduct the depreciative value of the real estate, in addition to the purchase loan, property taxes, and any other qualifying expenses.
With leasing, on the other hand, most of the rent, as well as related occupancy costs, are deductible against taxable income rather than deferred to future periods.
- Potential for Expansion – With purchasing your own space, if your medical practice grows and becomes successful, you have the freedom to expand your office space. As an owner, you’ll already have the ability to add to your existing space.
If you are leasing office space, it may be too small to meet your growing needs, and thus, you will need permission from your landlord to make any changes, depending on additional space availability and the cost. That’s why it is important to keep your long-term plans in mind before deciding whether to buy or lease.
To Buy or to Lease? The Bottom Line
In most cases, the choice of buying or leasing medical office space is a financial decision. Owning your space can be a good investment, but it requires more expenses to maintain your practice. On the plus side, it enables you to build equity while spreading out the costs of improvements and operating expenses over a longer length of time.
Leasing, on the other hand, is a better e option if you are anticipating future growth. It allows you to focus on increasing your patient base without worrying about unexpected costs and repairs.
Collier County Medical Office Lease
If you are looking for an attractive leasing opportunity – as well as a great location and additional amenities – look no further than the brand new Executive Medical Center. Located in the heart of Naples in Florida, the center boasts two floors of ultramodern medical office space.
That’s not all – the Executive Medical Center is equipped with a host of special amenities that all types of medical practices require for their operations. These include an independent, state-of-the-art MRI imaging center on the first floor. We’re also home to the North Naples Surgery Center, which can be your source of quick and easy referrals for your patients who need supplemental care.
To learn more about our leasing opportunities and how your medical practice can thrive at the Executive Medical Center, call the AJS Realty Group in Naples, Florida at (239) 313-3416 or email hamish@ajsrealtygroup.com. We look forward to hearing from you!
