The healthcare industry, with its unique demands and stringent requirements, presents a distinct set of challenges when it comes to property leasing. For medical and allied health operators, the decision between a fully-fitted ‘turnkey’ tenancy and a bare space requiring a custom fit-out is crucial. This decision can have significant financial and operational implications, considering that fit-out costs for a medical tenancy can exceed $2000 per square metre.
The Case for Turnkey Tenancies:
- Immediate Operational Readiness: Turnkey tenancies are fully equipped and ready for immediate use. This is particularly advantageous for healthcare professionals who need to minimise downtime and commence operations quickly.
- Cost Efficiency: The upfront investment in a turnkey tenancy is often lower compared to the high costs of custom fit-outs. This is crucial for new practices or smaller operators who might have limited capital.
- Compliance with Healthcare Standards: Turnkey properties are typically designed to meet the stringent healthcare standards and regulations, ensuring a safe and compliant environment for both patients and staff.
- Predictability in Planning: Turnkey solutions offer predictability in costs and timelines, essential for effective business planning and budgeting.
Considerations for Custom Fit-outs:
- Tailored Solutions: Custom fit-outs allow operators to design the space to suit specific operational needs and patient demographics, ensuring efficiency and a personalised touch.
- Brand Identity: Customising a space enables the incorporation of brand elements, essential for marketing and creating a unique patient experience.
- Long-term Investment: Although more expensive initially, a custom fit-out can be a worthwhile long-term investment, particularly for established practices with a stable patient base.
- Flexibility in Design: Custom fit-outs offer flexibility to adapt to emerging healthcare trends and technologies.
Making the Right Decision:
- Assessing Business Needs: Operators must assess their immediate and long-term business needs, patient demographics, and growth plans.
- Budget Considerations: It’s crucial to have a clear understanding of the budget and the financial implications of each option.
- Location and Demographics: The choice might also be influenced by the location of the tenancy and the target patient demographics.
- Professional Advice: Consulting with industry experts like RWC Medical can provide valuable insights and guidance in making an informed decision.
The choice between a turnkey tenancy and a custom fit-out in the medical and allied health sector is a significant one, with implications for cost, compliance, and operational efficiency. By carefully considering their specific needs, budget, and long-term goals, healthcare operators can make a decision that best supports the success and growth of their practice. With the expertise of specialised property agencies like RWC Medical, this decision-making process can be streamlined, leading to optimal outcomes for healthcare providers and their patients.
