Lease Pitfalls Physicians Should Avoid

Commercial leases can contain language that creates real problems for physicians if they are not reviewed carefully. I see many doctors move quickly because they are focused on opening, expanding, or relocating their practice. That urgency can lead to costly surprises later.

Common Lease Pitfalls

One common issue is the escalation clause, which can increase rent over time faster than expected. Another is responsibility for operating expenses, maintenance, or repairs that may shift more costs to the tenant than the physician realized.

Physicians should also pay close attention to renewal options, exit clauses, exclusivity terms, and any personal guarantee requirements.

Impact on Property Value

I also encourage sellers and landlords to think carefully about how lease terms affect the long-term value of the property. Strong, clean lease structures can make a property more attractive to future buyers. Weak or unclear terms can create friction during a sale and make the asset harder to market.

Before You Sign

Before you sign, make sure the lease supports your practice instead of limiting it. If you own a medical property and want to better position it for sale, that starts with understanding how buyers view the lease structure.

If you want to talk through a lease, a purchase, or a potential sale, contact me, Jon O'Shea with KW Commercial, at 267-780-3419.