Medical office building brochure and OM template

What makes medical office different from general office

A medical suite is more expensive to build and to move out of than a general office suite. Exam rooms need sinks, procedure rooms may need medical gases or extra ventilation, imaging rooms may need shielding and reinforced floors, and the waiting room has to handle patients who arrive with mobility devices. Because of that investment, medical tenants often stay for long periods, and both tenants and buyers pay close attention to what is already in place.

It also means the building’s infrastructure is part of the product. Two buildings with the same area and rent can differ sharply in how easily a new practice can move in. Describe the systems and the existing improvements exactly, and say which improvements stay with the building and which belong to the tenant.

Presenting suites for lease

• Give each suite its area, floor and the measurement basis, and say whether the area is rentable or usable. Use the same basis on the floor plans.
• Describe the existing build-out: number of exam or treatment rooms, sinks, washrooms within the suite, reception and waiting area, and any special rooms.
• Show the floor plan of each available suite, with callouts for the rooms a practice cares about.
• Quote the net rent and the additional rent (TMI, CAM or operating costs) separately, with the year of the cost estimate, and say who pays utilities.
• State any restrictions that apply to the suite: exclusive-use clauses held by other tenants, such as a pharmacy or an imaging exclusive, and permitted hours.

Many clinic tenants compare suites on total occupancy cost and on how much they would have to spend on improvements. Tenant improvement allowances and free-rent periods belong in the offer, but the brochure should make the starting point clear.

Presenting a medical office investment

For a sale, the buyer is underwriting the tenants and the building together. Lead with the tenancy: a rent roll with suite, area, rent, expiry and options, short profiles of the practices, and an abstract of each significant lease. State who signs each lease, whether a professional corporation, a partnership or an individual practitioner, and any personal or corporate guarantee.

Show income and expenses with their basis and period, deduct the costs the landlord carries before quoting NOI, and label calculated values. A weighted average lease term and a lease expiry schedule help buyers see how concentrated the risk is. If a hospital or health system is a tenant or controls nearby land, describe any agreements that affect the property, such as a right of first refusal or use restrictions, as they appear in the documents.

Canada and the United States

In Canada, medical office leases are usually net, with the tenant paying its share of taxes, maintenance and insurance as additional rent, and GST or HST applies to commercial rent. Accessibility requirements are set provincially, for example under Ontario’s accessibility legislation, and municipal zoning decides where clinics, laboratories and pharmacies may operate.

In the United States, leases are often described as NNN or modified gross, and accessibility is governed by the Americans with Disabilities Act together with state and local codes. Leases between hospitals or health systems and physicians who may refer patients to them are subject to federal rules, such as the Stark Law and the Anti-Kickback Statute, that generally expect rent at fair market value. The listing should not give legal advice; note which documents are available and let buyers’ counsel review them.

Location the way patients and practices see it

For medical office, location is measured in minutes for patients and in referrals for practices. Show drive times, transit routes and stops within walking distance, parking, and the health services nearby: hospitals, clinics, pharmacies, laboratories and seniors’ residences. Add population and households around the site from Statistics Canada for Canadian properties or the US Census Bureau American Community Survey for US properties, with the table and year, so practices can judge the patient base themselves.

Building it in OfferingStack

Start from the address or upload a fact sheet. OfferingStack builds the Building Specifications page from the rows you enter, an Availability page with each suite, Leasing Plans by floor when you add plan images, Floor Plans with numbered callouts, Demising Options, and a Stacking Plan. For a sale it adds Tenancy & rent roll, Tenant Profiles, Lease Abstracts, a Financial Overview and, for a for-sale listing with price and income, an Investment Summary with calculated values labelled.

Location pages come from the address: drive times, transit and connectivity, an amenities map whose groups include Health when clinics or hospitals are found nearby, and demographics with sources. Pages without data are left out rather than shown empty, and you review every page before it goes out.