The Simour Cost Opinion process is a checklist that we’ve devised to help you better understand the factors that need to be considered whether you’re building or renovating your medical space. It aims to give you a better overview of what is to be expected and the costs that they may entail to give you clarity before diving into the actual project. Medical spaces are varied depending on specialty and scale and the checklist below covers the top considerations you should know about before building or renovating your medical space.
Ownership (Leased or Purchased?)
This is pretty much straightforward, do you plan to buy or rent the property you wish to build your practice in? Owning and renting each has its pros and cons that need to be weighed with your financial ability, expansion plans, and long-term vision.
Specialty (Project Type)
Not all medical practices are the same and each specialization will have its intricacies that need to be considered. A dental office will need different spaces than a skin center. A Medical spa will not be designed in the same way as a surgical center. Aside from equipment and the services that will be on offer, expect that aesthetics of your interior design can likewise vary greatly depending on each of your specialties.
Scale (Project size)
Aside from specialty, the capacity can also shift the cost considerations. It can be determined by the number of patients you plan to service which will affect the square footage you need to find and develop. The number of practitioners, as well as the range of services that you’ll be offering can influence the size that you would need for your practice.
Real estate values are pretty much cut and dry in their pricing so locating your practice in the city center versus suburban setting will guarantee property prices that reflect the prevailing market. Additionally, your location can also impact prices for materials and labor as certain cities would have higher prices than the others.
Hard Costs (Construction Costs)
Construction costs are the physical costs of building and fitting out a space. It includes materials, equipment, wages, and material finishes of a project. Expect also that construction costs will also be affected by location. Keep in mind that the majority of construction costs is allocated for labor costs rather than it is to actual materials.
Soft Costs (Professional Services & Fees)
Soft costs are those that you pay for the permits and professional fees for every consultant you onboard for a project. It will include the entire team (architect, interior designer, construction manager, consulting engineers, real estate brokers, and others) whose services you will use from securing a location to the opening of the medical space for operations. Expect a premium for professionals that have a great track record for client satisfaction in delivering projects on time, on-spec, and on budget.
Scope (Interior Build-out vs Renovation)
The scope will define the exact work needed to complete the project. It is affected by factors like complexity depending on what is the desired effect in the interiors. It can also be tempered by what is currently on-site, what can be reused, repurposed, and improved upon. The scope also determines if structural or basic improvements are needed to prepare the space for occupancy which may be counted to the Tenant Improvement (TI) allowance that can be agreed upon negotiations.
Cost Opinions like these are high-level overviews of the project that give a sense of how much things cost to achieve the desired goals whether aesthetic or financial. It is helpful to be realistic and thorough so that your capabilities and expectations are met. Give us a call now so we can discuss how we may be of service in building your Medical spaces the stress-free SIMOUR way.