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Physicians Eye New Approaches to Medical Real Estate T H E E V O L U T I O N O F health care, along with other factors, is forcing physicians to rethink their views on real estate, according to PYA, a professional services fi rm special- izing in healthcare consulting. Independent physicians tra- ditionally opted for owning the facilities where they practiced. Today, many dollars that might have been spent purchasing facilities go toward better technology and medical equipment, professional development, EHR, and physician recruitment, PYA notes on its website, pyapc.com. Physicians are also frequently d ra w n to o f f i ce co n s o l i d a t i o n b e c a u s e o f t h e p o t e n t i a l f o r fi nancial and clinical effi ciencies. However, that is only part of the equation. Practice leaders should assess patient and service mix at the new site with an eye toward market need as well. Additionally, a practice "should consider competitive responses so that the consolidation strategy does not leave a 'market gap' for another medical provider," PYA writes. ■ — Steve Barrett Standing Strong in Offi ce Lease Negotiations M E D I C A L O F F I C E L E A D E R S who want to negotiate favorable terms for a lease can go into those talks from a position of strength and confi dence by doing some prep work, according to Colorado-based Carr Healthcare Realty. A m o n g o t h e r s t r a t e g i e s , negotiators should bring several alternatives to the table — not "bluffi ng or threatening ... but hav- ing multiple legitimate options and a credible willingness to choose the other property," the organization blogs on its website, carrhr.com. Landlords and their brokers pounce on weakness — such as lack of locally based professional representation on the part of ten- ants or tenants' limited knowledge of the local market — in order to offer undesirable terms. Also important: starting nego- tiations a year before the current lease ends. That improves tenants' position because it indicates they will have adequate time to pursue other options. ■ — Steve Barrett How to Make the Most of Property Investments W H IL E I N V E S T IN G I N medical real estate can provide a good payoff, investors should keep a few things top of mind to maxi- mize their return, according to Virginia-based Coldwell Banker Commercial Elite: Location still matters. Yes, it costs more to purchase a facility near the local hospital that has the most advanced technologies and service lines, but the return on investment from choosing a good location will be greater and the site will draw higher-caliber tenants. Leading-edge capabilities are vital. Technological features at an investment property should be the equal of those found at a mod- ern offi ce building. That includes everything from the latest HVAC systems to the fastest available internet connection. "The facilities ought to be as technologically capable as any Palo Alto tech startup," Coldwell writes. ■ — Steve Barrett 1 8