Renovation or relocation – what’s on your calendar for the coming year?

By Jan Rothfeld & Don Thomas

When you decide to remodel or relocate your medical practice, the process can be challenging. Just knowing where to begin can be overwhelming. Where do you start? If you choose the wrong General Contractor, you are setting yourself up for pain, frustration, time and expense. Medical Office Resources of Florida (MOROF) is a great place to start when you are building or remodeling your medical space.   You are not just dealing with one company you are dealing with professionals from every aspect of medical clinic relocation, construction and remodeling services.

In upcoming issues of our newsletter we will be highlighting some of the critical items to consider before you make one of the biggest decisions your practice may ever face.  Here is a list of topics we will be covering.

 

The first two items are explained in this issue and we will cover a few more in the next one.  If you would like to receive information about a topic not here or would like to get information on an item not covered yet please contact us.

PROJECT MANAGEMENT

By Jan Rothfeld, Creative Space +Management

A person that can alleviate all of the stress of bringing your dreams to fruition.

A project manager can and should be your eyes and ears during your upgrade – whether it is downsizing, renovating or purchasing/leasing a new facility.

Your PM should attend all of your planning meetings to be sure that all of your wants and desires appear on the new plans. He/she will assist in the selection of your architect or interior designer – depending on your upgrade. Working with these professionals, your PM will be there when decisions are made regarding furnishings (furniture, carpeting, art work etc.)

A PM should be able to recommend additional vendors that you may require or wish to change. These vendors would include: IT, security, pest control, janitorial, supplies, printing, billing, insurance, payroll, office equipment… and many, many more.

The PM will also help secure a competent moving company through bids and be there for the entire move process.

Your project should be a stress free and pleasant experience for everyone – if you have the right person helping you.

A CPA’s Prospective

Office Space – When to Lease, Purchase or Renovate

By Don Thomas CPA

As a business continues to grow the owners need to determine when the office space is no longer suitable to accommodate the business operations for the future. Planning ahead is vital to determining the office space that might best meet the needs for the business.

In the 2001 – 2007 time period we were experiencing significant increases in residential and commercial real estate prices and more access to financing which made it easier for a business owner to consider purchasing an office condo or building for their business.

With the change in the economy over the past several years and the availability of leased space the key question that a business needs to evaluate is what is the current cash flow available in the  business that can be allocated to the office space or building for leasing, purchasing or renovating an office space. The owner also needs to determine if there is financing available to them for purchasing a property and whether they plan to either stay in the building or hold onto the property for the next 10 to 20 years. Buying or building an office may prove to be a viable economic option and good long term investment.

In evaluating a decision to purchase a building you may want to talk to your CPA concerning the additional depreciation write-offs available if a cost segregation analysis is performed. This analysis is performed by a company with engineers who evaluate the components of the building to determine if certain components can be depreciated over a shorter life that the normal 39 years for a commercial building resulting in tax savings. This can change the lease vs buy analysis for a business and may make it more financially attractive to consider purchasing a building.

The other option to consider is with the availability of significant lease space in various locations and a willingness of leassors to offer competitive lease rates. It may be more cost effective to consider leasing for the next 3 to 10 years or longer. Also, lessors are sometimes willing to negotiate on the cost of renovations. In addition with the competitive nature of the construction industry and potentially lower costs than prior years, the cost to renovate a leased space should be evaluated and compared to building a new office or purchasing an existing building.

As you gather the information for evaluating these options I would encourage you to review any lease vs buy options with your CPA, real estate agent, and possibly other project management or construction professionals to assist you in making a solid business decision.

In the next issue we will discuss Financial Planning and Finding the right Realtor                           

Part 2 of this series
Helping You See the Big Picture

Why you need a Realtor for your relocation. 
Using a Registered (licensed) Interior Designer (RID) make sense.
Part 5 of this series
Electrical Engineering