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Quick Facts — Medical Office Lease Lawyers

What is a Medical Office Lease?

A medical office lease is a type of commercial lease agreement an owner of a medical practice will sign with a landlord to rent a commercial space for their medical practice. The commercial space will need to be equipped for the unique needs of a medical practice, which may include examination rooms and places to house unique medical equipment.

A commercial real estate lawyer with a background in the medical industry will serve as a valuable resource for medical practice owners during commercial lease review and negotiations with the potential landlord. These lawyers are equipped with a unique background to understand the common terms in medical office lease agreements, and understand what is fair and needed to make sure the medical practice is set up to succeed.

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Common Terms in a Medical Office Lease

Medical office leases can vary based on their terms, but below are some common terms you may find:

Rent Amount and Escalations

The first thing you will want to understand is what the monthly rental amount is for the lease and if there any baked in escalations. Rent escalations can be common in commercial leases since their terms can be 5-10 years in length.

Use of Premise Clause

This clause will outline how the commercial space can be used by the tenant. As it relates to medical practices, you will want to make sure the medical practice can use the space to meet all of the unique requirements a medical practice will have.

Improvements and Modifications

Common for medical offices, modifications and renovations may be required to make sure the space is suitable to run a medical practice. Understanding what a tenant is allowed to do in terms of improving the space is important to make sure it fits your plans.

Maintenance and Repairs

The medical office lease will outline who is responsible for maintenance costs and any repairs that may be needed throughout the lifetime of the lease. Make sure you understand who is responsible for paying for these so you can budget accordingly and have no surprises in the future.

Compliance with Laws

A medical practice lease will reference local and federal regulations, especially ones related to healthcare facilities. Some of these regulations may be related to HIPAA for patient privacy and the ADA for patients with disabilities. You will need to make sure you’re in compliance with these regulations so you do not breach the lease agreement.

Renewal & Termination

Lease agreements will have language around when and how the lease renews or how a tenant or landlord can get out of the lease. Make sure you are clear on this language and know any obligations you may have for renewals or terminating the lease.

Insurance Requirements

Lastly, a medical office lease will detail the insurance requirements (type of policies and amount) a medical practice will need to have to stay in compliance with the lease. Landlords will want to make sure the medical practice is covered so they reduce their default risk in the future.

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ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.


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