Medical Practice Lease Guide

Leasing premises for a medical practice involves unique considerations beyond standard commercial leases.

Location Considerations

1. Accessibility

Public transport access

Parking availability

Disability compliance

Patient demographics

2. Zoning and Permits

Verify medical use is permitted

Development approval requirements

Signage restrictions

Operating hours limitations

Essential Lease Terms

Permitted Use

Ensure the lease allows for:

All intended medical services

Allied health practitioners

Ancillary services (pharmacy, pathology)

Fit-Out Provisions

Consider:

Make-good obligations

Landlord contributions

Approval processes

Ownership of fixtures

Medical-Specific Requirements

Waste management

Infection control compliance

Ventilation standards

Acoustic requirements

Financial Considerations

Rent Structure

Base rent calculation (per sqm)

Outgoings and their caps

Rent review mechanisms

Incentives and rent-free periods

Additional Costs

Budget for:

Fit-out costs ($500-2000/sqm typical)

Compliance upgrades

Ongoing maintenance

Insurance requirements

Negotiation Strategies

Before Signing

Engage a commercial lawyer early

Conduct due diligence on the premises

Verify all verbal promises in writing

Negotiate key terms before detailed drafting

Key Points to Negotiate

Lease term and options

Rent review methodology

Make-good limitations

Assignment and subletting rights

Exclusivity provisions