Buying a Medical Office Unit: A Doctor’s Guide

Everything You Need to Know Before You Purchase Space for Your Practice

Whether you're launching a new clinic or relocating an existing practice, buying a medical office is a major step. This guide breaks down the key considerations to help you make a confident, strategic decision.

1. Zoning & Permitted Use

• Confirm that the property is zoned for medical use. General office zoning may not allow clinical activities, surgical procedures, or the use of biohazardous materials.

• Review any restrictions in association bylaws, CC&Rs, or the building's operating agreement.

• Verify use approvals directly with the city or county.

Watch out for: spaces that require rezoning or conditional use permits, which can be time-consuming and uncertain.

2. Location & Patient Access

• Choose a location that is easily accessible by car or public transit and close to hospitals, residential communities, or complementary providers.

• Look for buildings with ample parking — ideally 4 to 6 spaces per 1,000 square feet.

• Ensure the property is ADA-compliant, with ground-floor access or elevators for mobility-impaired patients.

Red flags: limited parking, complex access routes, or buildings that are difficult to navigate for patients.

3. Size & Space Planning

• Allocate approximately 150–250 square feet per exam room, and don’t forget reception, waiting areas, lab space, restrooms, and breakrooms.

• Plan for future growth: can the space accommodate additional staff, new services, or added equipment?

• Ensure ceiling heights and room sizes support the equipment and layout needed for your specialty.

• Plumbing and electrical infrastructure should support multiple sinks, sterilization units, and advanced devices.

Be cautious with: older buildings or former retail units that need significant retrofitting.

4. Mechanical, Electrical & Plumbing (MEP)

• Confirm that HVAC systems can support zoning per room or suite — essential for comfort and infection control.

• Electrical capacity must meet the demands of medical equipment (x-ray, autoclaves, etc.).

• Plumbing should include hot/cold water to each exam room and adequate drainage for labs or surgical spaces.

Avoid: buildings with shared or inadequate systems that can’t be individually controlled or upgraded easily.

5. Regulatory Compliance

• Ensure the space meets all OSHA, HIPAA, and local health department regulations.

• Radiology suites require special shielding, permits, and design approval.

• Look for existing fire suppression systems, emergency exits, and ventilation standards suitable for medical use.

• Confirm that the building can support compliant medical waste storage and removal.

Red flags: non-compliant layouts or costly upgrades to bring the space up to code.

6. Ownership Structure & Operating Costs

• Decide between purchasing a condo unit or a standalone property. Condo units come with HOA fees, which may cover exterior maintenance, insurance, and shared utilities.

• Review the HOA bylaws or CAM (common area maintenance) fees in detail.

• Understand property taxes and how they are assessed in your area.

• Explore SBA 504 loans and medical-specific loan programs that offer competitive terms for physicians.

Be cautious with: vague HOA rules or high CAM fees that don't deliver corresponding value.

7. Investment Value & Exit Strategy

• Choose locations with demand from other providers (e.g., dentists, therapists, or specialists) to protect resale value.

• Consider whether you’d eventually lease the space to another practitioner as a passive income source.

• Evaluate neighborhood growth trends and upcoming developments.

Red flags: low-demand areas or units that only appeal to highly specific users.

8. Buildout Requirements

• Shell spaces (unfinished interiors) allow for custom layouts but come with higher upfront costs.

• Second-generation medical spaces (previously used for healthcare) can significantly reduce construction time and cost.

• Confirm who is responsible for buildout — you or the developer. Get timelines and scope in writing.

• Budget $100–$250 per square foot for medical buildouts, depending on complexity.

Avoid: unrealistic timelines or developers unwilling to offer buildout credits.

9. Technology & Infrastructure

• Ensure the space is wired for high-speed internet to support EMR systems and telemedicine.

• Designate areas for servers or secure storage that meets HIPAA and cybersecurity standards.

• Evaluate whether existing wiring supports your IT, security, and phone systems.

Watch for: older infrastructure that requires expensive upgrades to support modern connectivity.

10. Build Your Advisory Team

To avoid mistakes and streamline the process, surround yourself with professionals experienced in medical real estate:

• Commercial real estate broker specializing in medical office purchases

• Healthcare architect with knowledge of medical codes and workflow design

• Contractor with a track record in healthcare buildouts

• Real estate attorney to review contracts, bylaws, and compliance

• Lender who offers medical-specific or SBA loan products

Summary: Key Takeaways

• Always confirm zoning, infrastructure, and regulatory compliance before purchasing.

• Make decisions based on patient access, long-term scalability, and operational efficiency.

• Protect your investment by planning for growth, resale value, and potential leasing options.

• Lean on experienced professionals to guide you through the process.

Want Expert Guidance?

If your lease is expiring within the next 18 months, don’t go it alone.

Contact Andrew Lasky to:

• Review your lease for free

• Identify red flags and negotiation opportunities

• Receive custom space recommendations

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