“The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails.”
—William Arthur Ward
It’s late on a Thursday. You’re reviewing your Profit & Loss statement like clockwork, red pen in hand, glass of wine within reach. Sales? Up 10%—great news. Labor costs are slightly elevated, but nothing alarming. Supplies? Manageable. Rent? Well… rent’s up too. A modest 5% bump—but still, it grabs your attention.
And there it is again: that quiet little voice that whispers,
“Real estate… it’s the one thing I can’t quite control.”
Leasehold: More Than Just a Line Item
Let’s talk leasehold.
To a seasoned real estate investor, it’s a wealth-building tool. To a business owner—especially a healthcare provider—it’s often just the box that holds your practice. But that “box” is more than walls and a roof. It’s your brand, your reputation, your patient experience… your livelihood.
Real estate can absolutely make or break a practice’s profitability. Accountants might label it a
fixed cost, but for you, it should be a
strategic cost—one that deserves just as much attention as staffing or equipment. Why? Because your space should
serve your practice, not just house it.
Think:
- Visibility
- Access
- Signage
- Demographics
- Competitive and complementary neighbors
It’s not just about what you’re paying. It’s about what you’re
getting in return.
Real Estate: Simple… Until It’s Not
Most people think they understand real estate. After all, how complex could it be? Two parties. One document. One space. Done.
Not quite.
Real estate is typically one of the
top three expenses in any healthcare practice—and unlike staffing or inventory, it’s not something you can tweak week to week. Leases are contractual commitments, often locked in for 5, 7, even 10 years at a time. And they usually come with escalations that quietly eat into your profits year after year.
Here’s the Good News
We’re still in a tenant’s market.
That means leverage is on your side—if you know how to use it. A properly negotiated lease renewal or relocation can slash your real estate expenses by more than
30%. We’re talking real dollars—often upwards of
$300,000 in savings over the life of a lease.
Let that sink in.
The Bottom Line
Real estate isn’t just about space—it’s about strategy. Whether you’re expanding, renegotiating, or simply planning for the future, understanding the impact of your lease can be the difference between good and great margins.
Part 2 coming soon – where we’ll dig into real-world lease strategies that protect your bottom line and set you up for long-term success.
At GILE, we love helping practices like yours
adjust the sails—with expert guidance, grounded insight, and just the right amount of fun along the way.
