The games landlords play

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A.   How will your growth goals impact your facility size requirements ?

Studies prove that 87% of all doctors that we have consulted with severely underutilize the space that they practice within. This means that most doctors are able to provide additional services and volume within their existing space ( or a similarly sized space) or the next time they move, they can rent substantially less square footage. This could result in a net savings to you of $21-$42,500 or more importantly, increasing your revenue well into the 6 figures…… learn more    

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B.    Should you stay or should you move? 

In many cases our clients try to determine if they should stay or relocate. The answer to that relies on many variables. First and foremost, before you or anyone can answer that for you, it is important to truly understand “Why” you are even asking that question. Are you looking to change the volume or services of your practice. If there were no rules and you could not fail, what clinical changes would you like to make? We have found that the clinical results of a practice are directly coupled to the demographics of your community. Do you have good visibility and signage? What is the convenience and traffic flow at your office. Does either of those have an impact on your style of practice? What is your PVA? What do you believe your PVA should be?  Are you a Wellness doctor or a PI, WC practice. ( or do you want to become either.) All of these have a direct impact on the answer to the initial question…… learn more    

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C.     How much space do you really need? Geometry plays a part

One of the first questions a realtor asks you when searching the real estate market for you is how much square footage do you need? First and foremost, be sure to fully understand the difference between rentable and usable square footage in the section above. While size does matter, the geometry of that space dictates how many visits you can see and what your services revenue stream could look like. To discuss two extremes, a 1500 square foot office can either be 15’ wide  x 100 deep, or 30’ wide x 50’ deep, NEITHER OF WHICH yield an efficient chiropractic clinic. While they will work, neither of them will produce a highly profitable clinic…… learn more    

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D.   A.   Before you begin your search;   Learn the language of Real Estate

Your monthly rent can be somewhat misleading. Some leases are presented as Gross leases, some ad Triple net. Understanding the differences and understanding the nuances of each section of a Triple net lease definitely impact your negotiations. This will bring you through the enlightenment process and help you create the best deal for you………….learn more 

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E.   Location analysis forms

As you compare locations, our “Prospective Location Analysis Form” will help you document the differences between spaces and help you calculate what truly suits your needs and budget …. Square footage, Gross or Triple net, Rentable or usable, Demographics, size and shape, pros and cons. As your realtor wisks you from one property to another, they all start to blend together. We have prepared this analysis form to help you keep things organized…… learn more    

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F.   Vision builder

Do you have a plan for your new office? The answer is probably “none that you are confident with” or you would probably not be on our website. Most people spend more time planning the family vacation than they do planning their business. It is hard enough trying to develop a plan or a goal for the future, let alone create a floor plan that helps support and enhance those goals, both clinically and personally. When studying with Michael Gerber, the systems and strategies of developing a highly successful business, it also helped us develop our vision builder. Our “Vision builder” is a methodology that helps our clients organize their thoughts. Once on paper, the process allows you to prioritize and galvanize them into a sound business plan. From there, we utilize the contents to develop a highly Professional, efficient and productive Chiropractic clinic. Download our vision builder form here…… learn more    

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G.   Rentable vs.usable square footage

If you ever want to see a realtor cringe, begin a discussion with them about the difference in how much space can you actually use (usable square footage) as compared to how much they will charge you for (rentable square footage).  They may begin discussions of loss factors or common areas and ultimately try to distract you from the case at hand. Understanding the difference between Rentable and usable square footage will ultimately allow you to accurately compare different facilities with different monthly rents. Comparing potential properties is more than just a cost per square foot. A properties true cost is about how much space you actually get to use to serve your patients. Cost savings can add up to …… learn more      

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H.    Grey box, Vanilla shell, as built and build to suit

So you have looked at numerous spaces, narrowed it down to a few ( or one) determined if the demographics of the neighborhood will support your clinical and business parameters and are ready to finalize your negotiations. When comparing one space to another, cost of construction almost always rears its ugly head. One of the biggest factors that impact your final build out cost is the condition of the unit when you take possession. Be sure to ask your realtor how the space is being delivered. While here is where they begin playing by offering you TI money, clarifying this one situation could cost, or save you $20,40 or in some cases, over $100,000 in build out costs. So what is the true difference between them? …… learn more    

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I.       TI – what does it mean, and what does it pay for

The sizzle , not the steak .  Tennant improvement allowances are typically used as a “Closing” technique and is probably the most misunderstood phrase being used. Case in point happened the other day, when I had the same doctor negotiate the same TI allowance for the same sized and shaped clinic with the same design elements being included, and yet, the contract bid she approved for each location varied by over $90,000. So what was the difference? It was how, when and what the TI allowance was being spent on that made all of the difference…… learn more    

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J.   L.O.I. inclusions; 5 simple phrases that can save you $50,000 or more

Your letter of intent is created to put the deal that you and your realtor have discussed, in writing, for everyone to agree to, before money is spent with attorneys. This means that if ANYTHING was discussed, and it is important to you, be sure that it is included in the LOI. If it is not, it will not be in your lease.  Letters of intent are in most cases, not legally binding agreements. They are created as a guideline of what the “Deal” includes. Keep in mind that if the realtor is writing it up, they are providing the details that protect the landlord. You have the right to include anything and everything that is important to you. Costs, inclusions, free rent, Cam charges are to name a few. Don’t be shy….This is your next to last chance to “Negotiate” the deal.  Here are some of the key phrases that may save you thousands, if not tens of thousands of dollars before you take possession of the facility. …… learn more    

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 K.  What to look for when hiring a contractor

Hiring a contractor is easy, hiring the right contractor can be a nightmare. If done by following our Chiropractic construction experience as a guideline, it too can be easy… if you know what to look out for. First and foremost, while it may sound obvious, getting referrals is a good place to start, however, ensuring that everyone is speaking the same language and are on the same page is a whole different world. Every contractor I have met has one thing in mind. Some of them truly want to make you happy, but first and foremost, they will be looking to charge you as much as they can and give you as little as they can. So how do you protect yourself? How do you protect yourself? …… learn more      

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L.    Design build firms – “Allowing the fox to watch the henhouse  

           Hiring a design / build firm definately will simplify your task as it places everything in one hand. THe challenge with this is that no one is looking out for your best interest. We have countless examples of doctors that have hired DB firms only to find out that having the project overseen by someone that was looking out for the clients ( your) best interest,  the costs were considerably less. SO was the DB firm ripping off the client? In many cases, no, BUT they were including elements, tasks, supervision and other items that were not required. Davlen can start the project for you with our design services and end it with our CHiropractic work stations if you need them, and oversee that the contractor and seperate architect ( if needed) are doing only what is in your best ineterst. Here are some of the parameters you need to know if and when you are thinking about hiring a D//B firm. It could be a difference of over $50,000 to you …… learn more  

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M.  How to hire an architect

Want to have some fun, try this.  Ask a potential architect what the smallest size room that will be required for a “High Low” and if you provide no other detail, not only will he not have a clue, but  he will be scratching his head trying to figure out what you do with a fork lift…. Funny but true, try it… Over the 3 decades of serving the Chiropractic profession, we have found that In order for you to get the most out of your construction dollar everyone should follow a simple rule developing your Chiropractic clinic is not about what CAN be done, it is about what SHOULD be done. It is not about who CAN do your design, but it is about who SHOULD be doing it.  While many Architects can claim that they can or have designed Chiropractic clinics in the past, If everyone does what they do best, your result will cost you less and save you time and money.  Most importantly, if this is followed, long after the CO’s are issued, the end result will be a facility that allows you to serve more patients in less space with lower overhead, making you more profitable. The strategy is simple; Everyone should do what they do best. You have to focus on building the practice and caring for your current patient base while …… learn more      

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N.  Bid analysis tips – guiding you through the “wonder” of the bidding process 

“Alice In Wonderland” had an easier time than trying to figure out how much a build out cost. Even after 32 years of helping Chiropractors select their contractors, even though varying contractors are looking at the same paperwork, I am still seeing bids that range from the tens of thousands, into the hundreds of thousands of dollars – for the same amount of work! While we gladly help you wade through this minefield of information, here are some of the tricks we have learned to help you through this…… learn more    

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O.  Contractor payment schedules and terms 

We have all heard the nightmare stories of how contractors start a project and disappear before the job is complete, only to have the client have to pay through the nose to be able to inhabit their office. Here is an in depth guideline to helping ensure that you always have the upper hand when it comes to paying your contractor. Contractors will always request payment terms that is in their best interests, but most times, they leave the client extremely vulnerable …… learn more