A clinic lease usually runs five to ten years, and the build-out often costs more than the first years of rent. A mistake in the lease can last the full term. Before you sign, check these 12 points.
Permitted use. The lease and the municipal zoning must both allow medical, dental or health care use. Get it in writing.
Exclusive use. Ask that the landlord not lease another unit in the plaza to a competing practice.
Plumbing. Confirm water and drains can reach each exam room or operatory, and who pays to bring them in.
Electrical and HVAC. Imaging, sterilization and dental equipment need more power and ventilation than an ordinary office.
Floor load. Rehab equipment, X-ray units and file storage can need a stronger floor.
Accessibility. Entry, washrooms and hallways must work for patients using wheelchairs or walkers.
Parking. Count the spaces available to your patients at your busiest hour, not the total in the plaza.
Improvement allowance and fixturing period. Money from the landlord toward your build-out, and rent-free time to build.
Term and renewal options. A term long enough to pay back your build-out, plus at least one renewal option.
Rent increases and additional rent. Know the yearly increases, and what the common-area costs and property taxes (TMI) are likely to be.
Assignment and sale of the practice. You must be able to transfer the lease if you sell or bring in partners.
Early exit and personal guarantee. Know what happens if you need to leave, and try to limit any personal guarantee.
Have an Ontario lawyer review the final lease. If you would like a second set of eyes before that, I offer a free 30-minute conversation to go through your current or proposed lease with you. Call 289-442-2851 or email steven@rayloya.com.