During an organization’s planning process, a consideration of how medical space should be acquired will be determined. Whether by lease or purchase, via development or existing retrofit, the option selected should be derived by the real estate’s ability to provide the desired utility at the lowest cost. The financing function will determine how to fund the space acquisition, whether through existing capital, mortgages, or operating lease.
For reasons of flexibility, timeliness, economies of scale, and availability of funds, leasing is a better decision. Otherwise, when cash flows dictate the opportunity to purchase an existing facility, a simple step should be undertaken to diligently search for the property that best fits the criteria.
For the purposes of targeting existing facilities to meet the specified criteria, reduce time, improve clarity, as well as bargaining position, it is important to utilize a document that is called a Request For Proposal (RFP). This, as a precursor to the landlord’s formal proposal, and which will answer the following general questions:
- Who will occupy the space or property?
- What type of space or property is required, leased or owned?
- What growth space will be required, now or future?
- When is space requirement needed?
- How long will the current need for such space last?
- Where should the property be located?
- What are special requirements?
For examples of purchase RFPs, please contact us here. As for acquiring lease space, items to consider in a Lease or Sublease RFP commonly are:
- Premises requirements (rentable or usable square feet)
- Term of the lease
- Commencement date
- Rent abatement (Free or deferred rent)
- Rental commencement date
- Rental rate
- Escalations or adjustments
- Improvement allowance
- Space planning and design services
- Expansion option(s)
- Renewal option(s)
- Property management and tenants
- Operating hours
- ADA compliance and access
- Extended or after hours HVAC
- Parking (# per 1,000 square of rentable space)
- Response to RFP due date
- Exhibits (if applicable)
Are you seeking an example of our Medical Real Estate Request for Proposal (RFP)? Require real estate guidance for a purchase or lease of a medical building in Texas?
Robert S. "Bob" Lowery Managing Partner MREA Medical Real Estate Advisors 1200 Smith Street, Suite 1600 Houston, TX 77002 713.701.7900 email@example.com