The Most Costly Expenses Of Medical Office Build Outs

The Most Costly Expenses Of Medical Office Build Outs

Our clients often ask us about the most expensive elements of a medical office build out. The most costly expense includes outfitting your space with the proper equipment and design elements for functionality. Building out a medical office is a big endeavor that includes putting money and time on the line, but if all goes as planned your build out should pay off.

You consult with a real estate leasing broker to find the right space and hire an architect to draw up the plans. All of these things cost money, but the highest expensive of all is the cost to outfit the space so that it is operational.

One of the first steps to building out a medical office of any kind is to find the right architecture and general contractor for the task. We can hook you up with one of our trusted architects or we can work alongside an architect previously selected by you.

During the early stages you must identify what kind of build out you need. Does your space require any demolition? Will your landlord cover build out costs or is that on you? Does the property come with the necessary utilities to accommodate all medical equipment, or does that need to be factored into the budget? 

The Benefits To Hiring A General Contractor

Doctors, dentists and veterinarians go through extensive schooling to operate a practice, and yet that schooling doesn’t typically include details pertaining to running or starting a business. Let alone outfitting a blank space to provide top-notch services to your clients. An experienced general contractor can help you figure out all of this, including budgeting and planning for future success.

Getting your business properly outfitted and up and running is the most costly part of your adventure. That means it offers the greatest opportunities to save money as well.

Even after your build out is complete and your business is open, there are more expenses to factor into the equation, including monthly rent, utilities, taxes, maintenance and insurance. By planning your build out just right you can actually reduce the cost of these continual expenses.

Every professional that you hire, from the architecture to the plumber, has a specific area of knowledge they are fluent in. It’s important to put together all of the pieces in order to end up with the best results. That’s where a general contractor comes in handy. It is our job to bid out tasks and put together all parts of your build out for the most cost-effective and efficient outcome.

How To Avoid The Most Common Medical Office Build Out Mistakes

Some of the biggest mistakes that medical professionals make when outfitting a space include…

Underestimating how much tenant improvements cost.

It’s not cheap to outfit a medical building, for one all of that fancy equipment is expensive. Hence why many doctors underestimate how much it will really cost to get their practice up and running. The actual cost will depend on a number of things, such as:

-The state of the building before you begin—how much work needs to be done to make the space useable? This is an important factor you can use for leverage when negotiating tenant improvement allowances.

-What sort of specialized requirements does your practice have? For instance, do you need lead walls for x-ray units or plumbing in examination rooms?

Trusting your landlord and their agents to represent you.

In a court of law it is illegal for the same attorney to represent both the plaintiff and the defendant, and the same logic pertains to landlord and tenant representation. Your interests are not the same as your landlord, which means trusting them to make the best decisions in your interest is not a good game plan.

Your landlord wants to make as much money as possible off of their rental, while as the tenant you want to pay as little rent as possible. Instead of being disappointed later that your agent didn’t do more for you in the negotiations process, you must realize their true intentions and protect your interests from the get-go.

Taking on your medical office build out solo mission.

We wouldn’t want to operate on someone, and you shouldn’t attempt to go at an entire medical practice build out alone. In the end you could end up spending way more money and falling far behind your original deadline. General contractors cost money upfront but in the end they virtually pay for themselves in reduced stress and issues, as well as substantial savings from reputable sub-contractors and vendors.

PCI has ample experience with medical office build outs. Allow our extensive knowledge, industry connections and superior customer service benefit your office build out from start to finish.