Weigh Pros and Cons of Leasing to Medical Tenants

In the last few years, the rise in medical office tenants leasing at retail properties or in office buildings has been a good development for many commercial owners because it has widened the pool of prospective tenants for dark space. But medical tenants also present some challenges. For example, some owners worry about confidentiality issues. Others are aware that medical tenants have a tendency to demand exclusives—which may create more work for owners.

Medical tenants also have different CAM needs and owners need to be prepared to calculate some of those costs differently from other tenants’ share of expenses. But the good news is that owners can shift the risk for some of these issues to the medical tenant.

For more information about the factors specific to this alternative type of tenant that owners should take into account before determining whether such a lease is the right deal for their property, see “Are Medical Tenants Right for Your Space?” available to subscribers here.

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