Expanding your medical practice in Beverly Hills is an exciting opportunity, but securing the right office space requires careful planning. A well-negotiated lease can ensure long-term success while avoiding costly mistakes. Here’s a comprehensive checklist to help guide you through the process.
1. Location & Accessibility
- Is the property in a high-visibility and well-trafficked area?
- Does it offer convenient access for patients, including parking and public transportation?
- Is it compliant with ADA (Americans with Disabilities Act) regulations?
2. Zoning & Permits
- Ensure the building is zoned for medical use.
- Verify whether special permits are required for your practice type.
- Check if there are any restrictions on medical procedures, hazardous materials, or radiology equipment.
3. Lease Structure & Terms
- Understand the lease type: Gross Lease, Modified Gross Lease, or Triple Net Lease (NNN).
- Consider the lease duration and renewal options.
- Evaluate rent escalations and negotiate reasonable annual increases.
4. Tenant Improvement (TI) Allowances
- What modifications are allowed to accommodate your practice’s needs?
- Does the landlord offer a Tenant Improvement allowance?
- Is there flexibility for custom build-outs, such as exam rooms or specialized equipment installations?
5. Operating Costs & Hidden Fees
- Identify all costs beyond base rent, including CAM (Common Area Maintenance) charges.
- Confirm responsibility for utilities, janitorial services, and maintenance.
- Clarify any additional costs, such as HVAC servicing and after-hours access fees.
6. Compliance & Liability
- Ensure HIPAA compliance in terms of office layout and patient privacy.
- Review malpractice and general liability insurance requirements.
- Understand landlord obligations for property maintenance and structural issues.
7. Exclusivity & Competition Clauses
- Negotiate an exclusivity clause to prevent competitors from leasing in the same building.
- Check for any restrictions on signage and branding.
8. Exit Strategy & Lease Flexibility
- What happens if you need to relocate or downsize?
- Are subleasing or lease assignment options available?
- Review termination clauses and associated penalties.