Having some considerable experience with doctors offices and medical space in general, let me see if I can help.
Even with psychiatrists, who very often make good tenants, doctors tend to be lousy business people, meaning they sometimes can be a pain to collect rent, etc. That being said, typically they sign longer term leases, have better credit, and attract other complementary practicing professionals, which is something to consider.
If you have a professional practice group anywhere nearby (hospital, clinic, etc.), all other things being equal, a small landlord can make a strong stable stream off of smaller medical space, as long as you don’t have to retrofit the space for medical.
I am writing a book about commercial properties to come out in early 2005, and would enjoy the chance to exchange brain cells if I can be of any further help.
Which is better? Office space or Multifamily? - Posted by austin
Posted by austin on February 13, 2004 at 16:19:33:
I Have the opportunity to purchase my 1st real RENTAL property. 1/2
hour away from each other one in PA other in NY
The First choice is a 3 family in NY with 1 office space on ground floor
(1 apartment is nice but 2 apartment units need to be brought up to
code, one is illegal) and
its a fixer upper for price: 175k that is completely vacant ( 2 units were
beiing rented together for total $1600 month), taxes: $6,500
Second choice: office space with 4 units, 3 units are being used as
psychiatrist offices and they want to stay in the bldg. one offfice is vacant
price $190k taxes: $3,400
the doctors are paying together a total of $1200 a month and all utilities
I wonder if someone could shed some light on the benifits or negatives
since this is really my first rental, it seems the Doctors office is less
headache but I could use any opinions.