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Healthcare Real Estate – FAQs - Gold Leaf Group Healthcare Real Estate Advisory FAQ's

Frequently Asked Questions

How long will the process take?

When dealing with commercial lease negotiations or acquisition negotiations, the only rule of thumb to remember is that “there is no rule of thumb”. Depending on the landlord, the status of the space, city regulations, competing tenants and the doctor’s timeliness/reliability, negotiations can be completed in a couple of weeks to three, four or more months. (See a typical project timeline)

Is a Medical/Professional Building or Retail Space better for me?

Both Retail and Medical/Professional buildings offer benefits. Retail space offers exposure and built-in advertising; where as medical/professional buildings offer lower lease rates and significantly higher tenant improvement allowances. We usually recommend that General Dentists pursue spaces in retail centers to maximize visibility and exposure. However, if you are physician or a dentist with an established patient base and are looking for an additional practice or replacement practice we may recommend you pursue space in a medical building. Additionally, if you are a specialist relying mostly on referrals, a medical building may be the way for you.

Should I buy or lease?

In most cases, first-time practice owners are in a stronger position to lease a space than to buy a commercial building. Not only are significant down payments often necessary in purchasing a commercial building, but the availability of buildings that fit the price range and size requirements of most doctors are very limited. If you purchase a building to house your practice, the building will be much larger than your practice and you will need to lease out the remaining space, thus taking on the added duties of a landlord. Contact us to find out if ownership is the right choice for you.

What are the costs incurred when working with GLG?

You will pay no fees to Gold Leaf Group. Similar to residential real estate transactions, the landlord or seller typically pays a commission that is shared by all brokers/space finder involved in the transaction. This means that in almost all cases you will not pay any out of pocket expenses for your real estate brokerage representation. Whether you represent yourself or have Gold Leaf Group represent you, the Landlord will pay a commission to his broker. Doesn’t it make sense that your best interests are looked after?

Occasionally, Gold Leaf Group can be retained on a per hour or ad hoc basis to take the reigns on some real estate negotiations. In these instances we will quote you a fee for this service and request an up front deposit of 50% to undertake these negotiations. To learn more about these services please contact us.

What are Triple Net charges?

Triple Net charges are non-negotiable operating expenses that are added to your monthly base rent. Quoted triple net charges are estimates that will be reconciled at the end of each year. After reconciliation, the landlord will either send you a bill for expenses that exceeded their estimate or will credit you if the expenses were lower than expected. Gold Leaf Group will ensure that your triple net charges are structured fairly and according to industry standards.

What is a Triple Net Lease vs. Full Service Gross Lease vs. Modified Gross Lease?

Triple Net Leases, Full Service Gross Leases and Modified Gross Leases all offer different levels of control over common area maintenance costs and operating expenses. The type of lease you commit to can have great implications on the value of your practice.

What is Gold Leaf Group Healthcare Real Estate Advisory?

Gold Leaf Group is a Commercial Real Estate firm specializing in Dental and Medical Tenant Representation. We work with dentists to identify and negotiate on spaces that will be suitable for their new practices. We are constantly exposed to vacant locations, developed properties that are in the early planning stages and even existing leasehold improvement and dental shells. We just might have inside information about your ideal space right now.

Why do I need GLG?

Finding a location is just part of the process of getting your practice off the ground successfully. Often doctors will come to us AFTER their initial lease negotiations with a landlord either have stalled or have ended in stalemate. By coming to us first we can save you time, money and frustration. We understand the way landlords negotiate, what the appropriate concessions to request are, and the various factors affecting the long term marketability of your practice.

Will a landlord contribute to the cost of my build-outs?

Depending on ownership, the condition of the asset, and the financial stability of the landlord, tenant improvement allowances can vary drastically. Some Landlords will not contribute to build-outs, while others will generously assist you in building out your practice. We are able to quickly identify which landlords will provide the best overall deal, whether that means high tenant improvement allowances or lower rates. Our goal is to get you the best bottom line deal as possible.

Will I be able to sell my practice?

Yes. Gold Leaf Group understands that life’s unexpected developments can affect your business at any time. In our lease negotiations we will protect your right to sell your practice, whether it’s based on need or desire.

Will I need to pay a deposit?

The amount of your initial deposit depends not only on the dentist’s financial strength, but the landlord’s level of comfort with this tenant’s ability to thrive at a given location and to fulfill their obligations under the lease. Our goal is to minimize your out-of-pocket expenses, while securing the right space for your needs.