Leasing a medical or allied health space is not the same as leasing a standard commercial tenancy. Clinical workflows, infection control, accessibility, services capacity, and regulatory compliance all introduce complexity — and that complexity can materially impact timeframes, cost and operational risk.
One of the most important decisions for healthcare operators is whether to secure a fully fitted turnkey tenancy or lease a bare shell and complete a custom medical fit-out. With fit-out costs for medical space often exceeding $2,000 per square metre, this decision is a major financial and operational lever.
A turnkey tenancy is typically delivered with the core clinical infrastructure already in place — allowing operators to focus on mobilisation and service delivery rather than managing a lengthy construction program.
For many practices, the biggest cost is the revenue lost while waiting to launch. Turnkey space can significantly reduce downtime and help teams commence trading sooner.
Custom fit-outs can require substantial upfront investment, especially where there are upgrades to services, fire compliance, acoustics, hydraulic capacity, and specialised rooms. Turnkey options can reduce immediate capital requirements and provide clearer cost and timeline expectations.
Healthcare environments carry higher standards around patient safety and staff workflows. Turnkey tenancies are often configured to align with common medical requirements — supporting compliance, operational safety, and patient experience.
When timelines are more certain, it becomes easier to align recruitment, equipment procurement, marketing, and patient onboarding. Predictability supports better budgeting and smoother practice mobilisation.
Turnkey is not always the best answer. Many operators will benefit from a tailored design, particularly where the clinical model is specialised or brand-led.
Custom fit-outs allow operators to optimise layout, consult-to-treatment flow, storage, sterility zones, imaging requirements, acoustics, and room sizing — improving efficiency and patient throughput.
A custom environment can better reflect your brand positioning and deliver a distinct, consistent patient experience — particularly important in competitive markets.
For practices with a stable patient base and a long-term site strategy, the higher upfront investment can be justified by improved functionality and a better fit for the service model over time.
A custom approach can be designed to accommodate new technologies, changing clinical workflows and evolving patient expectations — reducing the need for rework later.
The “right” option is the one that best supports your clinical model, opening timeline and capital position. Key considerations include:
Opening urgency: How quickly do you need to be operational?
Capital and cashflow: Can your business comfortably fund a custom fit-out while managing ramp-up?
Clinical requirements: Do you need specialised rooms, services, or equipment that turnkey space may not support?
Lease term and site strategy: Are you committing long-term, or maintaining flexibility?
Location and local demand: Does the catchment support a fast-start model, or a longer-term, premium experience play?
Medical leasing decisions are high-stakes because compliance, services and fit-out complexity can create unforeseen cost and delay. RWC Medical supports operators by aligning tenancy selection with clinical requirements, budgeting, approvals pathways, and long-term growth plans — while leveraging deep healthcare expertise to reduce risk and improve certainty from site selection through to mobilisation.
Turnkey tenancies can offer speed, cost certainty and a smoother pathway to opening — while custom fit-outs deliver flexibility, brand control and long-term optimisation. By matching the tenancy approach to your operational priorities, budget and growth strategy, healthcare operators can lease with confidence and set their practice up for sustainable performance.
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