Sometimes the best opportunities come during the worst of times. Professionals, especially those in the medical field, are taking advantage of real estate market conditions with the intentions of reaping future benefits. According to Allen Dreher, Director of CORE, LLC, it takes knowledge, understanding of the market and the skill to take full advantage of these opportunities.
When one firm walked into their landlord’s office to negotiate a new lease and subsequently discovered that a renewal would result in a significant price increase, they switched into purchase mode.
“That was the only push we needed,” said Jim Miles, attorney at Miles & Peters, as he explained that for years he had observed how his clients’ profit more from real estate than any other investment.
The timing was January of 2009, the beginning of the ‘Great Recession’, where potential buyers had opportunity to rise to the occasion of falling of interest rates. Instead of signing a new lease, the firm followed the signs of the time and set out to stake their claim in the real estate world.
Fred Simmons, currently Chief Executive Officer of Clearwater Cardiovascular and Interventional Consultants, experienced a similar buying opportunity when he served as an Executive Director at a previous practice. After the real estate downturn of the late 80s, his then practice was able to secure and buy a piece of distressed property next to their parent hospital.
“We were able to pick it up when commercial real estate was in the tanks,” said Simmons. He viewed the four story building as an investment. “After four or five years, the real estate market picked up again and we sold it for a good profit.”
Though buying in a weak market was his first experience, Simmons knows what a good investment looks like; and it comes in various sizes, spaces and floors. He continues to buy throughout changing real estate trends and continues to share his knowledge with others in his profession.
“Physicians always have a concern that they are paying too much,” said Simmons in relation to leasing, especially when doctors lease from hospitals. He additionally explained that physicians have a better opportunity at gaining during any real estate period. Though commercial real estate has been hit hard, he continued, “healthcare real estate has maintained its value.”
Although buying may seem tempting, making the transition from renter to owner is a daunting task for some physicians. The Pinnacle Group, recognized mostly for its role in healthcare consulting, has recently expanded its frontier with CORE, LLC to fit the needs of physicians and other professionals looking to capitalize on owning their office space rather than rent long-term.
David White, Executive Director of Pinnacle Healthcare Consulting explained, “In an industry where so many physicians are making less money, it can be reassuring to know property ownership in a practice is a stable investment with more operational control. However, sometimes it is hard to know where to begin and how to find the right space answers to keep things moving forward and manage the budget,” said White.
While good timing can be the extra push for prospective buyers, one factor that can be overlooked-time investment. Miles said that he and his partner spent on average five to ten hours per week on research, design and build-out of their property.
Sometimes even the best laid plans can get complicated and many little items can become large without the proper remedy. Time can literally mean money when one is simultaneously managing a business and buy/building out property.
Simmons suggested that unless there is someone in the practice who is familiar with the processes, seeking professional help may be a beneficial option and that use of a consultant would help with the issues a practice may not fully understand.
Dreher is one such individual who enjoys taking the reigns and managing these real estate puzzles. CORE can be viewed as a boutique service where physicians can pick and choose the services they need. He went on to explain that CORE is one of the few services available that coordinates strong, experienced resources to assist clients achieve a successful, efficient outcome. The services assist in mapping out a turnkey solution–from planning, to site selection, licensing issues, financing and build-out.
“I think it helps immensely when you have a quarterback that can work with all of the individual players and get them to work together to find solutions when everyday problems arise,” said Dreher. To request information, please contact Allen Dreher of CORE at 303.378.5567 or email to firstname.lastname@example.org.
Successful relocation and a future real estate investment portfolio begins with that first step, a call to someone who can assist in developing your roadmap to success. – Kimberly Berkey