Looking for medical office space in the greater Los Angeles area can be daunting.

As they say, knowledge is power and knowing what questions to ask when looking for medical office space in Los Angeles can save you time and money.

It may actually be better to hire a tenant rep.

Below is a list of things to consider before renting a medical office in Los Angeles.

Even if you hire a tenant rep you should have the basic knowledge below.

 

Why Hire a tenant rep

Tenants reps usually have access to more listings than what is out there.

We can negotiate 15-20 % off the list price at times.

Sometimes they can negotiate a few months of free rent.

The service is usually free for clients looking for space. The fee is usually paid for by the building or management company. So getting a tenant rep when looking for medical office space in Los Angeles might be an ideal way to find the perfect medical office.

 

How much space do I need

Knowing how much square footage you need should be your first question. Although this may seem easy not having the right square footage for your medical office in Los Angeles can reduce productivity and cost you money. Since medical office space in Los Angeles is so expensive you need to be very accurate with the amount of space you need. The rule of thumb for medical offices is 1200-1500 square feet for the first doctor and 1000-1200 for additional doctors up to 4 or 5. This equates to 3 exam rooms and 1 procedure room in an average physician’s office.

 

Determine what the average rates in Los Angeles are

To determine the medical office space rate in the greater Los Angeles area you’ll need to take a look around. Visit as many offices in the area to get a general idea of what the rates are. Keep in mind the rates may vary depending on the area. The prices might be higher in Venice than in hollywood. So when comparing make sure you are comparing rates from the same area of Los Angeles because medical office space prices can be extremely different in different neighborhoods in Los Angeles.

 

Understand the difference between Rentable and usable square footage.

The difference between rentable and usable square footage is called the building load factor.

The building load factor is the percentage of office space that is taken up in common areas.

These include lobbies, atriums, stairwells , elevators, electrical and storage rooms.

Each tenant will absorb some of these in each tenant’s rental space.

Building load factors can range from 5% for a bottom floor space to 15-20% for upper floors and multi unit space.

The property manager or tenant rep should be able to tell you what the factor is in each building you look at in Los Angeles.

 

Understand what additional fees you’ll pay besides rent

This is to understand your lease. There are usually three types of leases available to tenants of commercial property.
Triple Net Lease or NNN lease– you’ll pay a prorated portion of the buildings taxes, insurance , maintenance and management costs and repair fees. You will also be billed separately by the electric company
Modified Gross Lease-this lease will include many of the NNN lease separate items and you’ll still pay your own electricity. These leases vary on what’s included or not.
Full Service gross lease-this lease options includes all other expenses
Again your tenant rep can guide you as to what lease option is best for your medical office in Los Angeles.

 

Ask about an improvement allowance

In most cases you’ll be renting a previously occupied space and will have to do some renovating. This can be a costly endeavor. You tenant rep can negotiate a tenant improvement allowance to help defer some of the renovation costs. You should find out how much it is and whether or not it’s covered in the quoted rent. Construction in Los Angeles is at an all time high so you’ll need every penny of the tenant improvement allowance.

Ask if the space is accessible.

Is your potential medical office ADA and OSHA compliant. This needs to be negotiated prior to signing the lease. All buildings are required to be ADA and OSHA compliant. If they aren’t they will need to get up to code and this could be costly. You’ll not pass your health inspection in Los Angeles county if you’re not ADA and OSHA compliant.

Find out about Biohazard waste

Los Angeles has some very strict rules about disposal of biohazard materials. Make sure your potential rental has a storage and disposal system in place for biohazard materials. Many executive suites for example might not have a system in place and as a physician you’ll need that.

Check on after hours access and heating/cooling

You will undoubtedly have some after hour emergencies. You’ll need to know if you have after hours access to the building. Also you should know what the set heating and cooling hours are and will the heating and cooling lead to patients to be uncomfortable while waiting.

 

Learn about parking

As everyone knows parking in Los Angeles is a nightmare.

Make sure you have adequate parking for your patients and staff.

Not having close or appropriate parking can have a negative effect on your business and reduce new patients.

 

Check on Security

Los Angeles like any other large city has its share of crime.

Does your building have 24 hour security?

Is there a security guard, video surveillance, remote recording?
As a physician you’ll have sensitive patient files as well as narcotics in your office.

You’ll need to have 24 hour security. Also can you add to the existing security?

These all need to be worked out prior to signing the lease.

 

Medical office sharing

Consider medical office sharing since these are already established medical buildings that have a lot of doctors so they have everything you need. This is a great option for a single physician just starting out to reduce costs.