Finding The Right Healthcare Property For Your Practice

Finding The Right Healthcare Property For Your Practice

The healthcare sector has changed dramatically over the last decade due to legislative changes, demographic shifts and economic cycles. Finding the right location for your business practice has become a lengthy process that requires a survey of the competition along with various studies involving traffic counts, visibility and access. Whether you plan to lease or buy the property outright, you will be dedicating resources to build-out and set-up, which are major startup costs for any practice. That said, it is crucial to choose the most appropriate site based on your existing operations and future plans.

Choosing the Best Location

Medical office buildings have unique location requirements. These properties are typically found near major medical facilities such as hospitals and outpatient surgical/non-surgical units. Sites that are close to university campuses are also highly favored by medical practitioners because of the presence of advanced infrastructure, including communications technology and transportation. Additionally, the campus population is a good source of research volunteers, employees and consultants.

Determining Ease of Access

Medical facilities are destination businesses, which means the office is not dependent on pedestrian traffic. However, ease of access is a major concern especially for patients who rely on public transportation to get to their appointments. The site should have adequate connections to the main streets, and parking must be available especially during peak hours. The facility should have an option for overflow parking and valet service for patients with physical limitations. Access for patients with disabilities is mandatory in all states, so make sure that existing structures can be renovated and retrofitted to comply with access laws.

Establishing a One-Stop Healthcare Facility

Medical offices cluster in a particular area for enhanced efficiency when it comes to delivering healthcare services. Medical districts may be anchored by a hospital or university, and ancillary healthcare services are offered by providers at their own location. It is advantageous for both patient and provider to be in an environment where any additional healthcare services are accessible within a short distance. Standalone healthcare locations may be viable when the needs of a certain community justify the maintenance of a satellite office although this is no longer a widespread strategy.

Establishing an office for a healthcare practice is a lengthy and expensive process. It is a huge commitment of time and resources that may have you wondering when to rent space in an existing building and when to build your own office. The answer depends on whether the space meets all your predefined expectations, including room for expansion and improvements as your practice grows.

Pride One Construction is evolving the commercial real estate development and construction industry. Let us take your health care construction project to the next level!

References and Resources:

5 Things to Consider When Investing in Commercial Real Estate

5 Things to Consider When Investing in Commercial Real Estate

You are an investor, and you have been considering getting into the commercial real estate game. You have already made money on the residential side of real estate, but you’re interested in expanding your investing scope to more lucrative opportunities. While this kind of real estate venture can generate lots of cash flow, there are some issues you should be aware of before jumping in with both feet.

Running the Numbers

Image Credit: World Property Journal

When purchasing a commercial building or small stripmall-style property, you will want to take considerable time to go over the numbers of such a purchase. Will the cost of the property really justify the monthly generated income stream. Equally important, how long will it take to pay the property off—even if there are already renters paying an established monthly income rate. You have to know if this commercial venture is really going to be worth the investment.

Dealing With the County

Depending on what kind of commercial real estate you are investing in, there may be hidden licensing fees and county compliance issues that you must address along the way. Sometimes these issues are a matter of paying a fee to get the ball rolling. Other times, there are inspections that must be carried out, and you may even need permission from the county if laws have changed prior to you becoming the owner.  Getting in touch with the county and knowing this information ahead of time is key.

When You Are the Landlord

Image Credit: BizCommunity

Being a landlord for commercial real estate can be a bit more complicated than being a landlord in other real estate ventures. This time around, you are renting to restaurants, retail stores, and a variety of other shop owners. The negotiations and contracts for this kind of real estate process are more entangling, and they require developing a more amicable relationship to ensure tenants remain long-term, loyal rent payers.

Location Considerations

When it comes to sinking a huge investment into commercial property, you must make location a primary concern. Whether you are using a building for your own purposes or renting suites out to tenant businesses, you must make sure there is adequate foot traffic and visibility so that you will attract customers and clients. Otherwise, your location could kill any businesses trying to operate out of your commercial property—even your own.

Insurance Needs

Image credit: St. Louis Corporate Housing

Insurance is always a factor with any type of investment in commercial property. You would not want to risk owning such huge assets without having insurance to cover them. Before you purchase commercial property, you will want to be certain of the insurance ramifications that such a purchase entails. You will need liability insurance, flood insurance, in certain cases, and insurance to mitigate the costs associated with other types of potential damage to your commercial investment.

Going commercial with your real estate interests can turn into a huge investment opportunity. There is a lot of money to be made as the owner of commercial properties. The business applications are virtually endless, and so is the income potential.

When you’re ready to start the construction process, contact us at Pride One Construction to schedule a consultation.

Resources:

https://www.insureon.com/blog/post/2014/04/01/save-on-property-insurance.aspx

https://www.nolo.com/legal-encyclopedia/pros-cons-investing-commercial-real-estate.html

https://www.investopedia.com/articles/mortgages-real-estate/09/tips-commercial-real-estate.asp

What Every Real Estate Developer Needs to Know About the AIA

What Every Real Estate Developer Needs to Know About the AIA

The American Institute of Architects is a professional organization of architects based out of Washington D.C. and has over 90,000 members. It is one of the most influential architect organizations in the world and has ramifications on how construction and architecture are performed especially in the United States. Moreover, it is the industry-standard process for commercial construction invoicing, making it a very important aspect of real-estate and construction. Once this organization is joined, there are a host of rules that must be followed so that a high standard of quality is delivered.

What Real Estate Developers and Construction Companies Need to Know

According to Contract ERP, “AIA billing (sometimes called the percentage-of-completion method or progress billing) first became prominent in 1888 with the publication of the Uniform Contract.” The AIA was essentially founded to raise the bar in terms of architectural quality and promote a more precise nature for construction as a whole. Professionalism is the cornerstone of the ideals of the AIA and members are expected to export certain qualities and exude professionalism in order to please clients. This has built the image that the AIA produces some of the best architecture work in the world.

The AIA has five tiers of membership that directly relate to licensing privileges. These different licenses alter how much work an architect is allowed to do autonomously. A full-fledged member is allowed to practice anywhere in the United States while an associate member is not technically licensed, but is permitted to work under a licensed architect for the time being. Other variables that determine membership status: the amount of time spent in the organization, if the individual is physically capable of working or if they are licensed in another country. They also have more missions than simply raising professional standards. The AIA also aims to educate people on what good architecture should look like and try to spark public interest.

Conclusion

Overall, the AIA is a massive organization that any contractor or real-estate manager is going to have to be familiar with. The AIA influences everything from architecture licenses to governmental policy on rules and regulations in the construction world. Everything from the strict rules that members must follow the different types of memberships is important to know. Being well-versed in this pertinent organization can help anybody navigate the difficult world of real-estate and construction and enhance their prospects in those fields.