Introduction
Dr. Y was not a traditional veterinarian. She rehabilitated animals large and small – from horses to lap dogs. Dr. Y made home visits but needed a headquarters for her unique practice that included services like hydrotherapy and acupuncture for older and overweight pets. When she was tired of looking for space on her own, she contacted Practice Real Estate Group (PRG) to help with her search.
Challenge
Dr. Y had searched for spaces on her own for about a year when she reached out to PRG. She wanted a location that was a comfortable drive from her home, but every space she encountered had other veterinarians or offices that were way too big. Because of her specialty, she would never actually be competing with traditional veterinary practices for routine services like teeth cleanings and checkups, but she had difficulty explaining this to landlords. She had a unique value proposition, but she was still denied leases in the locations that fit her needs.
Solution
Practice Real Estate Group is known for creating opportunities where they don’t exist, and that’s exactly what Dr. Y’s agent did for her. Remembering a retail location at the entrance of a desirable neighborhood, Dr. Y’s agent reviewed the space. He researched two well-known third-party websites that most commercial real estate agents depend on to know what’s on the market. When her agent couldn’t find the listing, he drove to the development in person and discovered the property wasn’t being marketed.
Dr. Y’s agent approached the broker directly and was able to include the space in Dr. Y’s property search results. After touring multiple properties, it was the unlisted space that stood out above the rest. It was in a booming suburb in front of a neighborhood with lots of families and pets.
When her agent couldn’t find the listing, he drove to the development in person and discovered the property wasn’t being marketed.
Approach
By driving through growing areas – not just the traditional retail spaces anchored by a grocery store with 30 tenants, Dr. Y’s agent at PRG was able to uncover a high-value, but overlooked, property and bring it into the search. This location checked every box that Dr. Y was looking for to fulfill her greater vision. Because she would now be right in front of a neighborhood, she’d be part of the community to serve pet owners just around the corner.
Road Blocks
The landlord accommodated PRG’s initial offer in the LOI, but to finalize the lease, Dr. Y needed to take space from a gym next door. The listing was for the right amount of space that Dr. Y needed, but the actual square footage would need to be claimed from the downsizing gym. Usually, a space is suited for medical use or empty, but this space was neither. PRG immediately partnered with a contractor to begin planning backward. Together, with Dr. Y, they planned which walls to cut out, where to fit the columns, and how to form patient rooms without going through the gym’s showers or the locker room.
Results
After years of searching, Dr. Y found a space with the help of Practice Real Estate Group. She was also able to build out an office that met her sizing needs and fulfilled her vision. Additionally, PRG negotiated a lower-than-market rate rent with only a single increase over the life of the lease. Just a few years into her lease, business is booming and she’s ready for more space.
Call us at (512) 761-7101 or send us an email at [email protected] to explore your healthcare real estate needs.