Issue link: https://viewer.e-digitaledition.com/i/63200
BUSINESS OF MEDICINE A Commercial Real Estate Professional Brian M. Balash, CCIM H Can Be Key to a Smooth Transaction BETWEEN THE PUBLIC AND PRIVATE SECTORS, SYRACUSE HAS HAD UPWARDS OF $523 MILLION INVESTED IN RECENT HEALTH CARE- RELATED REAL ESTATE DEVELOPMENT. EALTH CARE IS a multitrillion-dollar industry globally and one of the driving forces in our local economy. Over the past few years, the health care industry has become massive and is growing faster than most other industries. While the number of patients hospitals and practices are seeing is on the rise, reimbursements are on the decline, and everyone is trying to figure out a way to financially survive. The market and regulatory pressures can be overwhelming. The only certainty is uncertainty! Cutting overhead in a medical practice is sometimes easier said than done. Salaries and equipment are typically your two biggest expenses, but it is hard to run a practice when you remove a key provider or key piece of equipment. Real estate is integral to your business and essential to the frontline delivery of health care services. Yet, despite being notable on the balance sheet, the real estate holdings and asset portfolios of health care are rarely optimized. Since medical office space is the most expensive space in the market, the day has arrived for it to be an area of focus for the industry. Commercial real estate professionals play a key role in any well-executed real estate transaction. That being said, they are often the last people brought in on a deal. During the internal planning processes, the earlier a real estate agent gets involved, the smoother the entire process can be. A commercial real estate professional can help select other key personnel involved in the process, such as architects, attorneys and accountants. You have a practice to run, so why not shift the workload to the experts? Here are a few basic services with which a commercial real estate profes- sional can assist your practice: Leasing: Renewals, Relocations, Expansions and Consolidations Whether your practice is expanding into a new facility, renew- ing a lease for an existing location or consolidating operations into a more efficient space, a commercial real estate professional will help leverage your position in the marketplace to obtain the most favorable terms and conditions commensurate with your unique business objectives. A financial analysis of lease and/or purchase options can also be helpful when establishing a budget. Acquisitions: Building and Land Purchases For some organizations, owning real estate can be the best strategy to address and customize facility needs and control long-term operating costs. A commercial real estate professional will have experience with building and land acquisitions. From stand-alone facilities to multi-tenant investment properties, we can help you make sense of opportunities and execute complex transactions to acquire property. Dispositions: Agency Leasing, Building Sales and Subleasing The health care industry presents a dynamic environment that can require unique and innovative solutions for real estate occupancy. As your organization evolves and the market moves through cycles, the disposition of leased or owned real estate may be necessary. A commercial real estate professional can identify suitable tenants and subtenants for properties. We can also provide solutions for selling your owned real estate assets, maximizing value and unlocking capital for future reinvestment. So why should your practice work with a commercial real estate agent? The answer is simple: to minimize your exposure to costly mistakes and allow you to capitalize on opportunities in the marketplace. While most tenants negotiate a lease once every five to 10 years, building owners and developers deal with leases every day. The right agent can guide you through each step of the process, allowing you to move forward with confidence. When selecting an agent, you should look at it the same way you would as a patient. You wouldn't want your dentist performing open-heart surgery on you. In much the same way, you don't want someone who specializes in industrial or residential real estate assisting you with your medical-office needs. A common misconception in real estate is that it will cost the landlord or the practice more money if a real estate commission has to be paid out. Having a highly skilled expert involved in the transaction can be beneficial to both parties. Rarely is the cost of a commission paid out greater than the value established by the real estate agent. Engage a commercial real estate professional and tap into his or her expertise as you approach the crossroads of health care, real estate and business. Brian M. Balash, CCIM, is a licensed sales agent specializing in medical and corporate real estate at Pyramid Brokerage Company, a Cushman & Wakefield Alliance partner with 10 offices across upstate New York. He is involved with Cushman & Wakefield's Healthcare Practice Group. The Healthcare Practice Group is a national platform of real estate professionals specializing in various sectors of the health care industry such as leasing, acquisition and disposition, and management of highly integrated, state-of-the-art medical facilities. For more information, he can be reached at (315) 445-8506 or bbalash@pyramidbrokerage.com. s MDNEWS.COM s MD NEWS Central New York | 21 ++++++++++++++++++++++++++++++ + ++++++++++++++++++++++++++++++ + +++ +++