Financing Medical Facilities
This guide covers financing Medical Facilities. We will cover traditional commercial lending options and hard money loans. Commercial real estate refers to properties that are used for business, such as offices, retail, industrial, hospitality, and multifamily.
Commercial real estate can also include properties used to provide health care services, such as medical facilities.
Medical facilities are buildings or spaces designed and equipped to accommodate healthcare professionals and patients. Medical facilities include small clinics, urgent care centers, large hospitals, and specialized centers. Medical facilities are an important part of the commercial real estate sector, as they serve society’s growing demand for health care services.
Types of Medical Facilities
Four main types of medical facilities can be considered commercial real estate properties: traditional office buildings, hospital campuses, medical office buildings, and retail spaces or shopping centers. Each type of medical facility has its benefits and drawbacks, depending on the needs and preferences of healthcare professionals and patients. This article will compare and contrast these four types of medical facilities
regarding their location, visibility, accessibility, amenities, and costs.
Traditional Office Buildings
Traditional office buildings are commercial properties that provide a professional and corporate setting for various businesses, including healthcare practices.
Traditional office buildings typically offer more natural light, better window lines, lower costs, and more assistance and maintenance from landlords than other medical facilities.
Traditional office buildings also have common area benefits, such as shared restrooms, lobbies, vestibules, and conference rooms. However, traditional office buildings may have less visibility, exposure, and signage than retail spaces or shopping centers. They may also cooperate less with other healthcare-related tenants than hospital campuses or medical office buildings.
Hospital Medical Facilities
Hospital campuses are commercial properties affiliated with or located near a hospital. Hospital campuses provide access to the hospital’s amenities and services, such as surgery centers, delivery centers, laboratories, pharmacies, cafeterias, and parking garages.
Hospital campuses also create a strong referral base for healthcare professionals who want to collaborate with the hospital staff and other practitioners.
Hospital campuses may have higher costs, stricter regulations, and more competition than other medical facilities. They may also need more flexibility and autonomy for healthcare professionals who want to customize their space or operate independently.
Retail Medical Office Building
Office buildings consisting of medical professionals for tenants are commercial properties dedicated exclusively to healthcare tenants. Medical office buildings provide an atmosphere that creates strong referral partners from health care related tenants. Medical office buildings also offer an increased supply of janitorial and utility services. However, medical office buildings may have higher costs, taxes, and maintenance expenses than traditional ones. Retail spaces or shopping centers may also need more visibility, exposure, and signage.
Retail Spaces or Shopping Centers
Retail spaces or shopping centers are commercial properties for public-facing businesses selling goods or services. Retail spaces or shopping centers typically provide more visibility, exposure, and signage than medical facilities.
Investing in medical facilities can support the development of the healthcare industry, one of the nation’s fastest-growing and most innovative industries.
Medical facilities in retail spaces or shopping centers also provide more traffic from other diversified tenants who attract customers or patients to the center. However, retail spaces or shopping centers may have higher rents, taxes, and maintenance expenses than traditional office buildings. They may also have less natural light, window lines, and privacy than office spaces or medical buildings.
Benefits of Investing in Medical Buildings
Here are some possible benefits: Investing in commercial real estate can provide steady and consistent returns, as the demand for healthcare services is always growing, regardless of the economic conditions. Investing in medical buildings can diversify your portfolio, as the healthcare sector is relatively uncorrelated with the stock market’s overall direction.
Investing in medical facilities can improve public health and well-being and the wider economy by providing access to quality healthcare services, reducing out-of-pocket spending, enhancing productivity, and fostering human capital development.
In conclusion, medical facilities are commercial real estate properties that can offer various benefits and drawbacks for healthcare professionals and patients. The choice of the type of medical facility depends on the goals, preferences, budget, and market conditions of each healthcare practice. We at Lending Network, LLC aim to provide useful information and insights for healthcare professionals looking for commercial real estate property for their practice.
