Sharon Kingsley, a health care professional, checks her email first thing when she gets into work. Amidst the many work emails and advertisements is an invitation to dinner with her good friends Dr. Mark Steinbeck, who runs a hospital on the other side of the city and Dr. Jason Gould, who was named best dentist in the county. She gladly accepts the invitation and then continues on to the rest of her emails. One of which is a reminder that the building’s real estate lease has less than two years on it.
Since it is the second largest single line item on their profit and loss statement, and can only be negotiated once every several years (which Sharon is in charge of getting completed), she feels like someone just dropped 100 lbs on her shoulders. The stress distracts her from her work for the rest of the day. Not until the day is nearly over and she has the dinner to look forward to, do the creases in her forehead relax.
“Hello, gentlemen,” Sharon addresses to her friends as she sits down at the table.
“Hi,” says Dr. Steinbeck, “I was just telling Jason that I’ve been trying to get in contact with my landlord today to schedule a lease negotiation and to ask if he has a broker I could use. Then Jason proceeded to save me from making a huge mistake. Apparently, the brokers that landlords provide don’t actually look out for our interest, but the landlords. Seems obvious now, but it had never occurred to me before.”
“Really? I have to start preparing for lease negotiations as well, I usually do it myself, but I can hardly ever keep up with it all so I was actually thinking about asking for a broker as well. I guess I’ll just have to cross my fingers that I don’t screw up too bad, then,” Sharon’s face turns sour.
Dr. Gould jumps in, “ Actually, Sharon, as I was just about to tell Mark, you can hire fiduciary representation. I just finished up my lease negotiations a few months ago, although the expert did most of the work for me. If I hadn’t hired them my landlord would have charged me 30% over the market rate, and I wouldn’t have been the wiser. In fact, if I had done the negotiations myself or used the landlord’s broker, the overage would have been worth at least 2 to 3 crowns a month down the drain.”
“Wow, that’s incredible,” Sharon instantly lights up, “maybe we can actually expand our practice this time. Last time we couldn’t get a loan and cash flow weren’t great so we couldn’t expand the company like we had wanted to. Since real estate is such a large line item, the savings will make a huge difference.”
“Sounds like these expert negotiators will end up saving us time, money and stress,” Dr. Steinbeck adds.
“Definitely,” Jason concurs, “The best part is that you don’t even pay for the expert broker. Landlords have to set aside a commission for just this, but they’d never tell the tenant that. It’s all part of the contract.”
Sharon and Mark look at each other, eyebrows raised in shock and amazement that they have been missing out on this.
While the illustration above is not your exact circumstance… we meet doctors every day who are struggling with their real estate negotiations. The good news is you don’t need to do it alone! We are GILE Healthcare Real Estate (Formerly Arizona Healthcare Realty) and we are here to help you! Our commitment to you is that our services will save you time, stress, and a lot of money. You can’t afford to pass up help when negotiating your lease.
Christian is the Founder and CEO of GILE Healthcare Real Estate (Formerly Arizona Healthcare Realty) a tenant and buyer representation firm specializing in medical real estate and investment services. A graduate of the United States Air Force Academy, Christian served on active duty in the U.S. Air Force for 10 years in Texas, California and Colorado and an additional 3 years in the reserves. He began his career in Commercial Real Estate in 2004. In that time he has personally negotiated over 1500 medical, dental, and veterinary lease & sale transactions for his clients. His representation and advice continue to result in extraordinary increases in profitability and savings for his clients. He now resides with his family in Scottsdale, Arizona.