Health care tenants are among the most stable tenants a landlord can have, and that is your leverage. Clinics stay for years and bring steady visits to a building. Use that when you negotiate these four things.
Improvement allowance
Ask the landlord to contribute a set amount per square foot toward your build-out. The longer your term, the more a landlord can usually offer.
Landlord’s work
Ask the landlord to deliver the basics before you move in: working washrooms, HVAC, a sound roof, and plumbing brought to the unit. Anything the landlord does is money you don’t spend.
Fixturing period
Ask for rent-free months while you build, so you are not paying rent before you can see patients.
Renewal options
After spending heavily on the build-out, you need the right to stay. Ask for one or two renewal options, with the rent set at a fixed amount or at fair market value with a cap.
Negotiate all four at the offer stage, in the offer to lease. Once that offer is signed, it is much harder to change anything. Have an Ontario lawyer review the final lease.
Planning a new clinic or a renewal in Hamilton, Halton or Niagara? Book a free 30-minute conversation: 289-442-2851 or steven@rayloya.com.