Banking on Baby Boomers, Part II

Banking on Baby Boomers, Part II
By: Nicholas A. Dunlap

In our primary office market, we see office rents ranging from $1.65 to $1.85, but we see Medical uses on the higher end of this range and in some instances into the $1.95 per square foot range.  Naturally, this correlates to higher property values.

Please see Part 2 of my recent column in the Journal of Property Management as included below.

Know Your Building

While medical office and other medical use rents are generally higher than those of a typical full-service gross office tenant, these tenants and their corresponding uses can also require significant upgrades and enhancements of key building systems such as plumbing and electricity in order to accommodate the increased usage.   And this can lead to increased operating expenses for the landlord.  It is important to ensure that the new tenant is responsible for these expenses, either through use of a NNN lease or a specific lease clause holding them responsible for their utilities.  What’s more, the City or municipality will likely require separate or additional accommodations to be made in order to appease the new use.  New parking requirements and compliance with updates or changes to the Americans with Disabilities Act is almost a standard requirement.