Real-Life Guide To Medical Office Buildout In 100 Images
(CLICK HERE TO DOWNLOAD GUIDES IN PDF)
Dear Doctor,When you lease a medical office space in NYC, in most instances it will require a substantial buildout. Just for you to understand how typical medical offices are built, we have developed this case study that shows a medical office space construction in 100 actual images. The buildout started with a full demolition of a former law office, and ended 6 weeks later with an installation of custom made cabinets, furniture, and equipment. Please, enjoy the art of the medical office space construction in pictures - a picture is worth a thousand words! P.S. At the very bottom you will find the Exhibit with deal terms for this office. |
FLOORPLAN FOR THE CASE STUDY
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Case Study: Medical Office Space Buildout from A to Z in 100 Actual Images
Exhibit 1: Offer, Counteroffer, and Final Lease Terms
Here are the Initial Offer, Counteroffer and Final Deal Terms for the office above. There were several rounds of offers and counteroffers before the Landlord and the Tenant have reached the consensus. Some deal terms are approximate or not disclosed as they are a subject to a confidentiality agreement
Offer |
Counteroffer |
Deal |
Tenant |
NYS Corporation |
Tenant (personally) |
NYS Corporation |
Guarantor |
Good Guy Clause |
Full Personal Guarantee |
Good Guy Clause |
Building |
Not disclosed |
Not disclosed |
Not disclosed |
Space |
Partial Floor |
Partial Floor |
Partial Floor |
Size in RSF |
1,400 RSF |
1,400 RSF |
1,400 RSF |
Term |
10 Years and 6 Months |
10 Years and 3 Months |
10 Years and 6 Months |
Base Rent Per RSF |
Y1 -11: $30/RSF |
Y1-5: $34/RSF
|
Y1-3: $30/RSF
|
Electricity per RSF |
Y1-11: $3/RSF |
Y1-3: $3/RSF
|
Y1-5: $3/RSF
|
Fixed Escalation |
3% |
3% |
3% |
Real Estate Tax Escalation |
Proportionate share of increases over Base Year 2014 |
Proportionate share of increases over Base Year 2013 |
Proportionate share of increases over Base Year 2013/2014 |
Free Rent |
6 Months (upfront) |
3 Months (structured) |
6 Months (structured) |
Possession |
Upon substantial completion of LL’s Work |
Upon substantial completion of LL’s Work |
Upon substantial completion of LL’s Work |
Landlord’s Work |
Full Standard Buildout with Plumbing |
Full standard Buildout without Plumbing |
Full standard Buildout without Plumbing |
Tenant’s Work |
None |
None |
None |
Tenant’s Contribution for 7 sinks, ADA bathroom, wood floor,
|
TBD |
$26,000 |
$26,000 |
Security Deposit |
3 Months of the Base Rent |
6 Months of the Escalated Rent |
4 Months of Escalated Rent with Burndown |
Security Burndown |
None |
None |
1 Month after Y2 |
Option to Sublease |
Yes, with LL’s Consent |
Yes, but to very limited list of uses |
Yes, to comprehensive list of uses |
Option to Extend |
Option to Extent for 5 Years at Fixed Rate |
None |
Option to Extent for 5 Years at Fair Market Rate |