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At TMC- The Mahr Company | We do things differently |The power of our “12”

At TMC- The Mahr Company | We do things differently | The “12”

Good Morning Today

“12 things successful people do differently”

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#1  They create and pursue focused goals.

#2  They take decisive and immediate action.

#3  They focus on Being productive, not being busy.

#4  They make logical, informed decisions.

#5. They avoid the trap of trying to make things perfect.

#6  They work outside of their comfort zone.

#7  They keep things simple.

#8  They focus on making small, continuous improvements.

#9  They measure and track their progress.

#10  They maintain a positive attitude as they learn from mistakes.

#11  They spend time with motivational people.

#12  They maintain balance in their life.

TMC-The Mahr Company | Excellence| Service| Commitment| Dedication| Your Goals = Our Goals

Types of Rent…………………..

Rent $

Among the most common questions asked by our clients is, “So what is the total gross rent that we will be paying?”  The answer to this question starts by stating that each building can be slightly different and most landlords have different definitions as to what constitutes gross rent for the space they are leasing.

The simplest approach as far as tenants are concerned, gross rent will include all real estate costs associated with renting a space ( except sales tax in Florida):

  • Base Rent
  • Property Taxes
  • Building Insurance ( Landlord’s)
  • Common Area Maintenance (CAM’s)
  • Building Management
  • Parking Costs
  • Gas & Electric Utilities
  • Janitorial
  • Trash Removal
  • Tenant Insurance
  • Tenant Improvements

1. Gross Rent Example Two (Modified Gross “MG”): Base Rent + Additional Rent (Utilities?) = Gross Rent Additional Rent varies from property to property, so always ask what additional rent includes. Gross Rent / 12 months = Monthly Gross Rent

  • Example One (Triple Net “NNN”): Base Rent + NNN = Gross Rent NNN = Taxes + Building Insurance + CAM’s Gross Rent / 12 months = Monthly Gross Rent
  • These costs are not always clearly laid out in the marketing material of various property listings and some of the costs vary broadly from property to property (i.e. taxes on office/flex space vs downtown office space). In addition, some of these costs are entirely founded in what the tenant may require and are outside of the landlord’s control. Items like data wiring or tenant specific improvements need to be assessed prior to finalizing any deal and signing a lease. We define these costs by placing them into two categories: gross rent & variable costs.
  • Will you please send me a breakdown of your NNN’s or additional rent?
  • Do these expenses include items like management, gas & electric utilities?
  • If gas & electric utilities are not included, how are they charged? Are they seperately metered or pro-rated?
  • Can you send me a 12-month average if utilities are not included? (This information can also be achieved by calling the utility provider for the building.)Variable costs are paid by the tenant, either directly, or indirectly as they are assumed in the rent as offered. Some of the costs are defined below:

2. Variable Costs

  • Tenant Improvements: Some spaces are ready “turn-key”; the tenant signs the lease, grabs the keys and moves right in. Other spaces require a build-out, meaning that to prepare the space to meet the tenants needs, the landlord and tenant must negotiate who will pay for and be responsible for completing a certain amount of finish.
  • Telephone/Data: Always carefully review your costs as they are associated to your connectivity. Some buildings are wired with access to high speed internet while others do not have a major service provider like Comcast or Century Link. Keep in mind data costs will vary broadly as service providers have different definitions of “high speed.” Make sure you are comparing this real cost to weigh your options when looking at various properties!
  • Landlord Incentives: I find it is often overlooked that landlords may offer incentives. These discounted costs deviate from one building and it’s landlord to another, but always keep in mind to ask.
  • As you can see, there is no straightforward answer regarding what gross rent does and does not include. Whether you are a tenant or a landlord, these costs should be clearly defined in your lease agreement. Sourced by the Colorado Group

Strategic Leasing Can Reduce Costs for Your Medical Practice

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By Leo Griffin | June 12, 2013

As healthcare reform and Medicare funding changes unfold, physicians are paying more attention than ever to their operating expenses. In addition to patients, they must examine their medical office needs with the goal of maintaining the most flexibility possible in these changing times.

                        Strategic leasing could potentially be the vehicle to accomplishing the much-needed business flexibility. Lease terms can range from three to 10 years (the initial period having a definite impact on the rates and tenant-improvement allowance). Although rent is typically 6 percent of a practice’s budget, the expense has a tremendous effect on both the top and bottom lines. It impacts the location, patient flow and staffing requirements for the office.

We recently discovered an opportunity for a practice to move less than a mile away to capture rent savings of $2,000 per month. The short geographical move yielded substantial long-term benefits. The physicians could maintain current staff and reduce overhead in addition to enjoying the new digs.

It helps to think of a medical practice’s month-to-month decision making as an internal competition for cash. As they examine the business model to adjust to the changes in healthcare, the principals have to consider the best allocation of available funds. Will it be for new equipment or another provider or staff member? Could it be for an additional office in another location that offers the desired patient demographics? Interwoven with the decision on how cash will be dispersed is the measurement of the return on investment. The proverbial “Cash is King” mantra rings true as ever for medical practices.

One key tactical maneuver has been to take the practice off campus to a medical office building offering lower occupancy costs. Baby Boomers want their off-campus facilities to cover all the services available in one facility, just like the retail center they grew up with. In the example above, the practice had nine months remaining on its current lease term. We found an opportunity that was much better for the business’ bottom line, and current patients only had to make one additional turn to get to the new location.

Reduced costs are just one part of strategic leasing. When planning to keep your practice on the road to success, think triple A: Access, Agility and Assets. Strategic leasing can allow the practice to better reach its desired patient demographics, while providing the ability to react to the aforementioned major market forces. The biggest asset is the business itself, so making a move that boosts its availability, versatility and bottom line makes plenty of sense.

Securing the most favorable occupancy costs through strategic leasing allows doctors to focus on their patients, people and, of course, the pursuit of business value.

Leo Griffin is vice president of Healthcare Real Estate Services at Atlanta-based Bull Realty.