The Changing Trends Of Medical Real Estate

Although medical professions have not really been known to struggle financially

, these days, doctors and other medical professionals are finding that they have to cut costs where they can in order to run a profitable medical office. This is due to recent changes in federal health care mandates as well as the recent lull in the economy, and therefore, the real estate market.

Recently, Medicaid and Medicare reimbursements to doctors have been being reduced and more reductions in reimbursements seem to be looming in the near future due to the passing of the Patient Protection and Affordable Care Act. The Patient Protection and Affordable Care Act has mandated that by 2014, all American citizens will need to have health insurance and in order to bring this about, many, many changes to Medicaid and Medicare are sure to start happening.

With more and more people being insured through Medicare and Medicaid, doctors and other medical professionals will find that more and more of the patients will be paying for their medical needs with Medicare and Medicaid, meaning those doctors and medical professionals will have more and more of their profits being made up of reduced reimbursements from Medicare and Medicaid.

With decreasing profits on the horizon, and to continue to provide medical services but still remain profitable, many doctors are beginning to reconsider the location of their offices and relocate to a medical office lease in Los Angeles that have terms and prices that are much more suitable for the changing medical climate.

Thanks to the current state of real estate, doctors and other medical professionals have been finding that unorthodox locations and buildings for their offices are what work best in this day and age. For example, many doctors have been relocating and setting up shop in commercial shopping centers. Not only are they finding that they literally get free advertising due to having a location with a lot of consumer foot-traffic, but that commercial shopping center owners are incredibly willing to lease out space in their centers to medical professionals.

In this economy, many banks have been reluctant to give out business loans, meaning owners of commercial centers are having a hard time finding tenants that can keep up with the rent. But with medical professionals, the case is a bit different- they are tenants who indeed can afford the rent, but are simply looking for a place where the rent price isnt cutting into budget more than it needs to be, which is highly desirable to owners at a time like this.

Many owners of commercial centers are now catering their commercial spaces directly towards medical professionals, by including tenant improvement packages to their lease agreements in order to attract doctors who will definitely be needing improvements and upgrades to their offices to house the medical equipment that they will be needing to effectively provide their services. So, if you are looking for a medical space for rent in Los Angeles, dont forget to think about unorthodox locations such commercial centers.

by: medicalspacelease

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