Average /acceptable rents for private practice

[thefootfixer]

Just taking a poll from the PP folks on here…what’s everyone paying on average, rent for your office? What’s considered acceptable in today’s world? What’s a deal breaker? If Rent rises, When would u consider “moving the office”

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[Feli]

This is totally regional.

 

[thefootfixer]

Ok so what are people seeing regionally? No need to give away exact locations and zip codes lol

 

[dtrack22]

Just search for medical office space on loopnet.com in your area and you’ll get an idea

 

[icebreaker32]

Probably $2,200 to $3,000 per month for someone starting out. A HCOL area might be more or you might just make do with a really small space.

So many factors also like are utilities and cleaning included. How well is parking lot and landscaping maintained etc.

If you do a buildout you might be locked into a really long lease.

 

[NatCh]

To echo what the other guys have said, the amount is very variable and depends on the local market plus any Tenant Improvements ("TI's"). It's negotiable with your landlord. I'm not sure how useful this info will be to you but here's an example lease for my zip code. Note the built-in rising rate. You can expect your landlord to want to increase rent along the way. I doubt any owner would want to keep rents at what they were 5-10-20 years ago. Also, this space represents (probably) much more square footage than a new solo practitioner would need the first few years. Depends how busy you get.

Months 1-12 $5,679.10 per month ($1.90 PSF PM)
Months 13-24 $5,858.44 per month ($1.96 PSF PM)
Months 25-36 $6,037.78 per month ($2.02 PSF PM)
Months 37-48 $6,217.12 per month ($2.08 PSF PM)
Months 49-60 $6,396.46 per month ($2.14 PSF PM)

CAM CHARGES (Cost of Area Maintenance): $1,614.06 per month ($0.54 /sf/month estimated)

 

[619]

You can also look into sharing (renting) office office space with a PCP or even another specialists. Maybe find an older doc who is slowing down and looking to retire in the near future. Starting out, you only need about 1 to 2 exam rooms. You can also probably also share front desk staff.

 

[NatCh]

You can also look into sharing (renting) office office space with a PCP or even another specialists. Maybe find an older doc who is slowing down and looking to retire in the near future. Starting out, you only need about 1 to 2 exam rooms. You can also probably also share front desk staff.

^Yes. This is how my group ran our satellite offices. We'd rent a furnished room for a couple of days per month from a primary care office and get the use of their front desk staff to check patients in. Usually it cost around $200 per day. One of my partners had a satellite wayyyy the heck out in the rural part of the state within a small hospital. They never collected any rent from him at all because they needed him so badly. It was a 3 hour commute each way though so after a few years of that he gave it up. Here in our city there was another DPM who worked solo, sharing an office with an Internist. He had one employee who did all the reception and billing. He's retired or on sabbatical or something, but he's not currently working.

 

[619]

Yes. This is how my group ran our satellite offices. We'd rent a furnished room for a couple of days per month from a primary care office and get the use of their front desk staff to check patients in. Usually it cost around $200 per day. One of my partners had a satellite wayyyy the heck out in the rural part of the state within a small hospital. They never collected any rent from him at all because they needed him so badly. It was a 3 hour commute each way though so after a few years of that he gave it up. Here in our city there was another DPM who worked solo, sharing an office with an Internist. He had one employee who did all the reception and billing. He's retired or on sabbatical or something, but he's not currently working.

When I started out solo 2 years ago, my one employees ran everything upfront and also did my billing as she had over 10 years experience in billing. I was seeing about 10 patients a day with one staff before I added another. You don't need an army of staff starting out.