Fortunately if you are a physician,dentist, or health careprofessional, even in an economicdownturn, your industry maintains steadygrowth and provides a nearly recessionproof market. According to the SanAntonio Chamber of Commerce, ourcity’s health services sector is the No. 1economic generator and accounts fornearly $10 billion in annual income. Inaddition, the Bureau of Labor Statisticsprojects that the health care industry willcontinue to generate more new jobs by2016, than any other industry.
These market factors are quitepromising considering the seriouseconomic hurdles being faced by manyother industries. But as a physician ordentist, how can you best leverage yourinvestment opportunities, and stand outamong your competition by attracting andretaining both patients and staff?
With the volatility of the stock market,and minimal returns in the bond markets,many physicians are looking to real estateinvestments to improve their returns. Oneof the best opportunities available to aphysician or dentist is the purchase of yourown office space. Similar to the benefitsof owning a home in lieu of renting,ownership of your office space providesthe benefits of appreciation in valueover time, positive leverage of your cashinvestment, depreciation tax deductions,and a predictable monthly paymentinstead of unpredictable rent escalations.
Some market savvy physicians electto purchase their office space in order tolease to their own practice. With current,record low, interest rates, it is an ideal timeto consider purchasing your own office.The practice writes off the lease as anexpense, and you have a stable manageabletenant, your own practice.
At Huffman Developments, we haveunderstood The significant financialof condominium campuses to maximizenot only the financial return, but the abilityof the practices to stand out from theircompetition with high quality, homelikeoffices. These medical and dental offices aredesigned with the needs and comfort of yourpatients and staff in mind.
In terms of financial return, initialinvestors on our Sonterra campus paid $135per foot for the shell of their offices in early2004. Just four years later, at essentially thesame location, with the same constructionstandards, shell prices are over $200 perfoot. A 48percent increase in value, with anannualized increase in value of 12 percent.
These investments have been beneficialnot only to owners, but also to patients.Each office suite is custom designed toincorporate the elements that are mostimportant to each physician’s patientpopulation. All offices boast a “homelike”atmosphere that is substantiallymore appealing to patients than a typical,institutional, medical environment.Huffman Developments is a member of theCenter for Health which promotes the useof design details to ensure the best possibleclinical environment for patients. Typicalelements include 10– foot ceilings, canlighting in waiting areas and hallways, lots ofnatural light, warm colors, arched openings,water features, artwork, and other finishingdetails that ensure a warm, inviting appealfor patients and staff alike.
When patients walk into one of theseoffices they know automatically that theyare valued. Dr. Irene Kazdan embracedthis concept when she designed heroncology practice, which opened in June2008. Kazdan explains that the designprocess enabled her “to make people feelcomfortable and safe, which is very difficultto do in an oncology practice. Patientsare scared and confused and we wantedto do everything possible to take away thestress. The design of the office allowed meto show respect for our patients and thatwe value them as people”. Some of the keydesign elements for Kazdan included waterfeatures both outside and inside of heroffice, a rounded reception counter withwarm colors and decorative lighting fixtures.She also incorporated a wall mounted fishtank in her therapy room which has lotsof natural light to create a warm, relaxedenvironment.
Dr. J. William Robbins is also very positiveabout the response of patients to his newoffice, which is located on Sonterra Blvd.Robbins said that “we have achieved ourgoal which was to create an atmosphere of‘simple elegance’. The calming environmentand ambiance of our new office results inlower stress and anxiety for our patients, andbetter outcomes for their dental exams andprocedures”. Dr. Robbins also incorporated awater feature with an artistic glass backdropand green plantings. The sound of the waterfeature and the natural elements provide aninviting focal point for patients. Robbins goeson to say that even “the staff is happier andmore relaxed which is contagious to patientswho then feel more relaxed during their visitsto our new office”.
Local psychiatrist Dr. Frank Lane, indicatesthat the response of patients is predictable inthat “research has shown that natural lighthas a biochemical component which allowsa person to feel less stressed and anxious. Inaddition, a comfortable homelike setting withearthtone colors allows a person to feel morerelaxed and less intimidated, resulting in apatient who is able to fully optimize patientcare”.
The bottom line is that as a physician, youare in a unique position in today’s economy toinitiate a “win–win” strategy for your practice,your patients, and your economic futureby investing in your own office space andcreating a homelike atmosphere that will setyou apart from your competition.
