Establishing a new practice – or relocating an existing one – raises all sorts of important financial and logistical questions, not the least of which is the fundamental decision whether to lease or buy your medical office space. On one hand, buying your office space can help you build wealth. However, it can be a risky proposition if you are setting up shop in the wrong location or the value of the property declines.
There are potential risks and benefits to both approaches, and the ultimate decision will depend on a variety of factors. There are three major factors to consider when deciding whether to lease or buy your medical office space:
- The business expenses you are willing to incur. In the short term, leasing is certainly cheaper than buying. You don’t need a lot of money upfront – just your first month’s rent, a security deposit, and any extra tenant improvement dollars. Purchasing office space, on the other hand, requires a greater initial investment, including loan fees, building inspections, and an appraisal, among other costs.
- Certain tax advantages. If you own your building or office space, you may be able to deduct the depreciative value of the real estate, property taxes, or other qualifying expenses. If you lease, most rent or related occupancy costs are deductible against taxable income instead of deferred to future periods.
- Your location. The decision to lease or buy is often influenced by where your practice is situated. It makes more sense to rent space, rather than buy property, if your practice is in an area that is not your most desired location or if you don’t want to be tied down long-term to a location.
The Bottom Line on Leasing vs. Buying
For the most part, the decision to lease or buy boils down to financial considerations. That is why it is important to understand all the potential costs associated with both of these options. As the owner of a building, you will incur more expenses to maintain your practice. Leasing tends to be the more sensible option, especially if you expect to outgrow your space over time or want to be able to relocate later on. It also allows you to focus more on building your patient base than dealing with maintenance issues and costly repairs.
The Advantage of Leasing Medical Office Space in Naples, Florida
If you’re looking to maintain a medical office space that will draw new and/or existing patients, as well as save you money in the long run, you should consider leasing at the brand new Executive Medical Center in Naples, Florida.
Located just a quarter-mile from I-75, the Executive Medical Center is a contemporary-designed, three-story, 28,000-square foot building set to open in February of 2021. Numerous healthcare providers are already leasing space to take advantage of such physician- and patient-friendly features as:
- Two spacious stylishly designed floors of medical offices in move-in condition and equipped with all the amenities a busy practice like yours requires.
- An independent, state-of-the-art MRI imaging center located on the first floor, which will enable you to obtain detailed scans, so you can diagnose and treat patients in a timely manner.
- The North Naples Surgery Center, an ultramodern outpatient ambulatory surgical unit conveniently located on the third floor of the Executive Medical Center. The surgical center is equipped with cutting-edge technology and highly trained medical staff ready to handle a large volume of daily patient traffic and a wide range of elective, same-day procedures involving the use of moderate sedation.If you are a surgeon with privileges at the Surgery Center, you will have access to any equipment, anesthesiologists, and/or medical staff you need to perform your particular procedure.
Leasing office space is a smart, preferable choice for most medical providers.
