Leasing VS Buying Medical Office Property

MEDICAL OFFICE PROPERTY Leasing VS Buying Medical Office Property W Factors To Consider While Leasing Medical Property Flexibility 1. A short time horizon - a purchase can take three months or longer to shut , then you would like time for any necessary improvements to form the office suitable for you . 2. Costs are high for building or buying when you're able to make a move - as purchase prices devour , interest rates rise , and construction costs increase ; they will create a barrier to entry for ownership . ● · Costs There aren't many unforeseeable costs with leasing since your lease dictates what your values will be , and most high - ticket capital items fall to the owner . Typically , the sole variable is working expenses . Still , these are equivalent on each side of the lease - or - buy discussion ; they aren't too critical to the general decision as to whether to lease or buy . Also , carefully read the medical office lease agreement . ● Market Fluctuations When you're leasing any property , you're exposed to specific changes within the market at the top of every lease term . If the demand has risen considerably during your lease term , you'll be faced with a significant rent increase . It's also important to acknowledge that if the market declines during your period , you'll likely be ready to negotiate a lower lease rate . In short , when leasing , you're always riding the market . Factors To Consider While Buying Medical Property • Risk Owning - whether buying an existing building or constructing a replacement one - involves risk . When watching ownership options , you would like to form some assumptions ( i.e. , guesstimates ) : Call For Information EEO ( 949 ) 669-4230 With " assumptions " comes risk . You can control a number of the dangers with insurance and warranties , but many things are out of your control , just like the market generally , time delays , and price escalations . Market Fluctuations The market might hit a downturn , we'd have a recession , and suddenly you would possibly find that your building isn't worth what you purchased or what you were expecting once you started . We've all seen it happen before , and it can happen again . That said , albeit appreciation doesn't meet your projections , ownership might still be more financially advantageous than leasing because low interest rates and the tax benefits ownership provides could offset some market blips . [email protected]