2-12 Corbett Way 
Eatontown NJ 07799

Essential Considerations for your Medical Office Space Lease Agreement

The healthcare industry is competitive and finding a facility—and landlord—that meets practitioner and patient demands isn’t always easy. Within our 60 years of experience, The Donato Group has gained a rich understanding of medical real estate, and we understand the demands of both private practitioners and larger medical organizations. While it may seem like there is a standard process in leasing commercial real estate, there are some technicalities that require attention prior to signing a medical office space lease agreement and we’re happy to walk our tenants through each and every one.

Items to Discuss in your Lease Agreement

The Use of Medical and Lab Equipment 

Almost every medical facility, from a dentist office to an obstetrician office, requires the use of specialized machinery, such as radiation-emitting CT scanners and x-ray machines. Tenants must be sure to account for these in any lease documents to guarantee compliance and to ensure their landlord is aware of what kinds of equipment will be used within the space.

ADA Compliancy Regulations

The Americans with Disabilities Act must be considered when going through lease documents for your medical office space. When a building permits shared medical space, it is more likely to be scrutinized by official bodies. Therefore, the clause for ADA should be identified prior to accepting the sublease for a medical office. If the space isn’t already ADA compliant, The Donato Group’s commercial contracting services can help build out a plan to ensure that the space meets federal regulations.  

After-Hours Patient Access

To meet the demands of today’s patients, many medical offices operate outside of normal business hours. Shared medical space tenants should consequently pay strong attention to the accountability of utility costs over the 24-hour period to avoid unnecessary expenses. Additionally, facilities should ensure that patients will be able to access the office during early morning or later evening hours. This is especially of concern for offices within a corporate complex, which may be located behind gates that lock or are guarded after a certain time of the day.

Tenant Improvement Allowance

The build-out or renovation of medical offices is generally more expensive than regular office tenants. The Donato Group takes ample time to thoroughly negotiate an improvement allowance so that tenant needs are appropriately met. Items that we discuss include term of lease, liens, relocation provision, and restoration of premises.

Landlord Privacy and Inspection Limitations

In any medical office space lease, there are going to be limitations on landlord accessibility due to patient confidentiality. In typical commercial leases, the landlord is permitted to inspect the premises and show the space to future tenants. However, due to federal and state regulations, such as HIPPA, healthcare providers must limit access to certain rooms and documents to ensure privacy. The Donato Group understands this necessity and will work with tenants to ensure regulations are appropriately met.

The Donato Group are experts in commercial real estate, including the finding of suitable medical office locations for practitioners across Monmouth County. To help our tenants successfully carry out their practice and meet patient needs, we are dedicated to thoroughly exploring each of the above terms found within a typical medical office space lease agreement.

Contact us to learn more about our available listings or explore our commercial contracting services. You may also speak directly with a member of our team by calling 732-663-9932.