All is negotiable. Especially in todays down market. If you are the landlord, it is to your advantage to have a space go dark. Whatever works, but do keep in mind that if you have a note on the property, you got to make the numbers work whether short term or long term.
A med renovation can be expensive especially if the building has not been renovated in a while. I would suggest you investigate with the city what the impact will be when renovating. Would you have to bring the premises up to code?
Medical facilities are bound by additional reguglations such as hazard waste disposal, radiation if x ray machines. etc etc.
The cost of a cosmetic renovation could be moderate, that is if the tenant is not asking for a state of the art decorator in which case you may be able to absorbr the basic ie paint, restoreing light fix, chaning kknobs doors etc. And leave the decoration to the tenant.
If you are the tenant you can ask for what would be reasonable. A tenant can always ask especially if you have been a good tenant. If this is a primary lease of 5 years you probable will be looking at the first 3 yrs at one rate and the remaining 2 with a bump. As a tenant you may want to consider asking for a second 5 yr option even a third 5 yr option if your practice merits your stay for 10 - 15 years.
Rmember that the landlord may have a note on the property and numbers should work for botht of you. Meaning the landlord if not a national entity may not be able to run the red if makes all the renovations the tenant wants.
As a tenant you may want to renovate part of it yourself and in turn request a rent reduction for 6mos to a 1 year.
It is all in the meeting of "reasonable, business minds" and it can work. Go into negotiations with an open mind keeping your counter part's position in mind and asking how woul you negotiate ir were your building? How would you negotiate if you were the tenant?
Negotiating is not who beets the other out of something, its who to make it work for both parties.
Feb 9, 2010