New Medical Office Building in Tampa Almost 100% Leased!

Equity Inc plans to build a 36,000 Square Foot Office Building in Tampa near St. Joseph’s Hospital. Tenants to be announced soon. Join an Urgent Care, Children’s Orthopedic Group, OBGYN and others! Don’t miss your opportunity!

Changes in Healthcare Yield New Medical Office Buildings in Tampa, FL!

Equity Inc. announced the anticipated delivery of a brand new 36,000-square-foot, class-A medical office building near Baycare’s St. Joseph Hospital Campus in Tampa, Florida.  The building is slated for completion in the fall of 2014, and will be the first multi-tenant medical office building constructed in the area in 30 years.

“This project enables us to keep pace with physician demand for office space near Baycare’s campus,” said Carleton Compton, Equity’s Vice President of Healthcare Leasing.  Currently, the on-campus hospital building is at full capacity.  Nicole Dagostino, Equity’s Healthcare Leasing Specialist, said, “The building is already getting a lot of traction, but naming rights are still available for the anchor tenant.”

“The two-story facility will have a covered patient drop off area with other amenities including ample parking (6/1,000) – a commodity that is scarce in the seasoned medical community.  The building will also offer frontage on Martin Luther King Boulevard, which is considered the east-west gateway to the medical community,” said Phil Kirkpatrick, Senior Vice President of Development for Equity, Inc.  Other new developments in the area include Panera Bread and Florida Cancer Specialist’s 36,000-square-foot facility, both adjacent to the site.

The total cost of the project is $7.25 million, which excludes the ground lease with Jesuit High School, the owners of the land.  Equity, Inc. is both the developer and the contractor for the project and KRA architecture + design will provide planning and design services.  Equity Inc. is a national brokerage, development and construction firm based in Columbus, Ohio.  The company specializes in healthcare real estate services and has a strong presence in Florida, with offices in Tampa, Orlando, and a new office in Naples, serving the southwest Florida market.

Carleton Compton can be reached at (813) 490-9812 or ccompton@equity.net, Phil Kirkpatrick can be reached at (813) 490-9803 or pkirkpatrick@equity.net, and Nicole Dagostino can be reached at (813) 490-9813 or ndagostino@equity.net.

 

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Medical Office Spaces Just Leased

Carleton Compton leased 7,088 square feet of medical space on 66th Street in Pinellas Park to Florida Primary Care Centers, LLC. He represented the Landlord in the deal. Carleton also leased 2,345 SF of medical space to Labcorp in Downtown St. Petersburg. Click here for more information!

Cost Saving Strategies: Case Study on the Benefits of Early Lease Renewals and Lease Audits

If you are like most medical practices, you are constantly looking for ways to decrease your overhead costs. In a lean market, it can mean a more competitive position in the market. It can also be the difference between profitability and loss. One area that you may be overlooking is your current lease agreement. If you are up for renewal within the next year or two, you may have more leverage than you think.

This past year, the Equity Healthcare Team was hired to review Dental Care Alliance’s (DCA) renewal option. The following case study shows the benefit of having a formal lease audit conducted by a commercial real estate expert.

The Situation: DCA felt that their base rent and common area maintenance charges (CAM) were above market.  Since occupying their space, the tenancy in the building and surrounding area was on the decline.  The anchor tenant in the building was Suntrust, whose relocation could stigmatize the building.  In addition, the elevator in the building was inadequate and needed replacement or repairs. Since DCA occupied second floor space, this was an inconvenience for their patients.

The Strategy:  DCA hired Equity Healthcare Real Estate to represent them in their lease renewal negotiations. The client had two options; move to a new location or stay put. DCA was more inclined to stay in their existing location. In an effort to have a stronger position while negotiating with the Landlord, Equity advised the client to pursue a leverage negotiation. Equity reviewed DCA’S existing lease while also performing a site search for alternative spaces in the market. By understanding the market conditions, including rental rates, CAM charges, tenant improvement allowance, and vacancy rates, Equity was able to have a stronger position in negotiating leverage with the landlord.

The Results: Equity was able to negotiate the following renewal terms for DCA:

  • A five (5) year lease with a starting Base Rent of $12.37 PSF with 2% annual increases. This was a significant decrease from their original Base Rent of $25 PSF with 3% annual increases.
  • Equity discovered inconsistencies in the CAM Charges, which were adjusted and brought the Base Year down to $8.73 PSF from $10 PSF. The landlord also agreed to a 5% cumulative cap on operating expenses.
  • The renewal allowed DCA to terminate their agreement if the bank downstairs left the building at any time during their lease period.
  • DCA was able to obtain exclusivity for dental care in the building.
  • In their initial Lease, DCA agreed to pay back the total build-out allowance ($71,000) if they did not renew their Lease for an additional 10 years.  Equity was able to convince the landlord to terminate the language in the Lease tied to the $71,000 penalty and modify it to include 2 renewal options for 3 years each.
  • The Landlord addressed the significant concerns regarding the elevator problems and provided an acceptable resolution.

Over the course of five years, the renewal negotiation saved DCA approximately $316,207 in base rent alone. Additionally, Equity helped DCA achieve more flexibility in their lease and a stronger control of their environment. Not every situation will yield the same results, however, if you would like an analysis of your current leases, please contact Carleton Compton at 813-490-9812.

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