Sublease Medical Office Space

Are you a doctor or medical professional looking for ways to grow your practice? If so, you may be interested in subleasing medical office space. Subleasing can be a great way to get more out of your current office space, while also expanding your reach and attracting new patients. In this blog post, we will discuss sublease medical office space: tips to grow your practice!

Since March 2020, office sublease space has increased by 80% in the United States. The COVID-19 pandemic has caused many businesses to close their doors permanently. However, the medical industry has been deemed “essential” and has remained open throughout the pandemic.

Sublease Medical Office Space

Why Should You Sublease Your Medical Office Space?

You’re a doctor or in the medical field, you have a practice, and you’ve got the patients coming in. But there are times when being in a medical office space is not ideal for your patient population or your business.

When this happens, it might be time to sublease your medical office space. Here are some reasons why:

It’s Less Expensive To Share Medical Office Space

If you’re looking to move your medical practice, you may be wondering if it is better to lease or sublease your office space. While both options have their benefits, there are several reasons why subleasing may be the right choice for your business.

First and foremost, subleasing is often cheaper than leasing. When you lease an office space, you are responsible for all of the costs associated with renting the office space. This includes rent, utilities, insurance, and maintenance fees.

In addition to these expenses, you will also need to pay for any improvements that need to be made to the property before it can be occupied by a tenant or subtenant (if necessary). This can quickly add up! Subleasing allows you to take advantage of existing infrastructure while only paying for what you use rather than having all of these expenses tied up in one location.

Benefits Of Medical Networking

The benefits of medical networking are endless. The first and most obvious benefit is the opportunity to expand your services and reach more patients. Medical networking allows you to use other people’s space, equipment, and staff to meet the needs of your patients. This means that you can offer more services, which in turn leads to more revenue for you as well as an increase in the number of patients who will be coming through your doors.

Subleasing Your Space Can Save You Time

Let’s face it: owning a medical practice can be a lot of work.

It’s just not always possible to keep up with all the responsibilities that come with owning your own space. But what if you could save yourself some time while still keeping your practice?

That’s where subleasing comes in. You can find a tenant who will take over all the responsibilities of owning and operating a medical office, including paying their share of the rent and utilities, while you work on growing your business elsewhere.

That way, you don’t have to worry about being tied down by one location or another—you can focus on growing your practice without worrying about finding new clients or keeping up with maintenance issues!

Grow Your Medical Practice

Medical office space is often in high demand, yet can be difficult to find. One way to alleviate this issue is to sublease your medical office space. By subleasing, you essentially become a landlord and have the ability to collect rent while still using the space yourself. This can be a great way to grow your medical practice, as the extra income can be used to invest in new equipment or hire additional staff.

Additionally, subleasing allows you to choose your tenant, which means you can choose another medical practice that is compatible with your own. This can create a symbiotic relationship between the two practices, and lead to increased referrals and patients. Ultimately, subleasing your medical office space can be a great way to grow your business while still maintaining a high level of control.

Other Benefits Of a Shared Office Space

In today’s economy, more and more businesses are looking for ways to save money. One way to do this is to sublease your medical office space. By subleasing, you can share the cost of the lease with another business. This can be a great way to save money, especially if you are just starting.

In addition, by subleasing your medical office space, you can also take advantage of the other benefits of shared office space. These benefits can include having access to a larger variety of medical equipment and services, as well as being able to network with other businesses in the same building. So why not give it a try? You may be surprised at how much you enjoy the benefits of shared office space.

Medical Office Sublease Agreement (And How to Sublease Office Space)

As a doctor or medical practitioner, you are well aware of the unique circumstances associated with the medical profession. In press difficulties including the handling of biomedical waste and toxic chemicals, upholding health code safety regulations, and ensuring patient records’ confidentiality, doctors frequently form customized medical office sublease agreements. As a result, you should be ready to bargain for favorable terms in the lease to safeguard your business, staff, and clients.

However, since it is a sublease and you are not dealing with the property owner directly, you should exercise extra caution and make every effort to comprehend the components of a typical sublease agreement. Make sure you are not breaking any of the lease’s terms by familiarizing yourself with the different types of clauses often found in these agreements.

For example, a damage clause will likely state that you are responsible for any damage done to the property during your occupancy. Another common clause is the quiet enjoyment clause, which guarantees that you will be able to use the property without interruption from the landlord or other tenants. By understanding the various clauses found in medical office subleases, you can be better prepared to negotiate for favorable terms that protect your interests. 

Tips for Successful Medical Office Sublease in Los Angeles

Here are some tips for a successful medical office sublease in Los Angeles:

Check With the Landlord

Before subleasing office space from another medical practice in Los Angeles, it is important to check with the landlord to ensure that the sublease is permitted. Many landlords have restrictions on who can sublease their space and for how long.

In addition, it is important to review the lease agreement to see if there are any stipulations about subleasing. Once you have determined that subleasing is allowed, it is important to find a reputable and trustworthy tenant. Be sure to screen potential tenants carefully and check references before making a final decision. With a little bit of planning and research, you can successfully sublease your office space in Los Angeles.

Take Inventory

As the medical industry continues to grow in Los Angeles, so does the demand for office space. If you’re a medical professional considering subleasing your office, there are a few things you need to do to ensure a successful transaction. First, take inventory of your furniture, equipment, and supplies. You’ll need to determine what is essential to your practice and what can be left behind.

It’s also important to take pictures or videos of your office space so that potential subtenants can get an idea of the layout and size. Once you have a good understanding of what you have and what you need, you can begin the search for the perfect subtenant.

When screening candidates, be sure to ask for references and tour their current office space. With a little bit of planning and due diligence, you can find the perfect subtenant for your Los Angeles medical office.

List Your Space in the Right Place

When it comes to listing your medical office space for sublease in Los Angeles, you want to make sure you list it in the right place. There are a few different ways to do this, but the most important thing is to reach as many potential subletters as possible. One way to do this is to list your space on websites that are specifically geared towards subleasing medical office space. This will ensure that people who are searching for this type of space will be able to easily find your listing.

Another way to reach potential subletters is to list your space on general real estate websites. While this may not be as targeted as a specific site for medical office subleases, it will still allow you to reach a large number of people who may be interested in your space. Regardless of where you choose to list your space, the most important thing is to make sure it is listed in a place where it will be seen by as many potential subletters as possible.

Know What the Market Will Bear

With so many options available, it can be tempting to choose the first option that comes along. However, taking the time to research your options and understand the market rates will help you get the best deal possible. One way to determine what the fair market will bear is to consult with a local real estate agent. They will be able to provide you with information on average rental rates in your area. Additionally, you can review online listings to see what other businesses are charging for similar space.

Consider Time Sharing

When it comes to medical office sublease in Los Angeles, there are a few things you need to keep in mind to ensure success. First and foremost, you need to consider time sharing. This means that you will be splitting the space with another business, and it is important to make sure that you are both on the same page in terms of hours and days of operation.

You also need to be clear about what each of you is responsible for in terms of utilities, janitorial services, and so on. In addition, you should sign a legal agreement that outlines the terms of your arrangement. By taking these steps, you can help ensure a smooth and successful medical office sublease in Los Angeles.

Subleasing your medical office space is a great way to save money and find a new home for your practice. But if you’re not careful, you could be making costly mistakes. Here are some of the most common legal mistakes physicians make when subleasing their medical office space:

1) Not getting a written agreement

A written agreement is essential in any business deal involving real estate. Without a written lease agreement, you’ll have no way to prove that you had permission to sublease the property and no protection if your landlord claims otherwise.

2) Not having a lease, to begin with

If you don’t have a lease on the space in question, your landlord likely has an obligation to let you sublease it—even if he or she agrees to do so verbally. This can bring up all sorts of legal issues down the road, especially if there is any dispute about whether the sublease should continue after your lease expires.

3) Not getting proof that the landlord approves of the new tenant

If you don’t get written proof from your landlord that he or she approves of this new tenant and agrees to allow them into the building, then there may be grounds for termination upon expiration of either party’s contract (you or the new tenant’s).

This is why it’s so important to have a lawyer review your sublease agreement before you sign anything. An experienced real estate attorney can help you avoid these and other common mistakes, ensuring that your medical office space sublease goes smoothly—and saving you money in the long run.

Sublease Medical Office Space

Optimizing Space for Enhanced Care: The Impact of Addressing Office Congestion

“Look around at the busiest areas in your office, and determine what is causing the pileups.”

When we take a moment to observe the bustling areas of our office, especially those spots where traffic seems to bottleneck, we uncover a wealth of insights into how our space is utilized—and, more importantly, how it might be falling short of meeting our needs. This exercise isn’t just about identifying problem areas; it’s a crucial step toward creating a more efficient, productive, and welcoming environment for everyone who steps through our doors.

In the context of medical commercial real estate, understanding these congestion points is vital. It impacts not just the comfort of our patients and staff but also the flow of operations and the overall patient experience. For instance, a waiting area that becomes too crowded can increase stress and decrease satisfaction for patients. Similarly, a narrow hallway that frequently becomes congested can hinder the swift movement of medical personnel, potentially delaying care.

By pinpointing where these pileups occur, we can start to re-imagine our space. Maybe it means reconfiguring waiting rooms to offer more seating or creating clearer pathways for foot traffic. Perhaps it’s about optimizing the layout to ensure that frequently accessed areas are more accessible, reducing the time staff spend navigating the office. It could even lead to more significant changes, like expanding the physical footprint of our space to alleviate overcrowding.

Addressing these issues is about more than just aesthetics or convenience; it’s about patient care, staff morale, and operational efficiency. A well-designed medical office space can significantly enhance the quality of service we provide, improve the work environment for our team, and ultimately, contribute to better health outcomes for our patients.

This proactive approach to managing our physical environment demonstrates our commitment to excellence in healthcare and our dedication to creating spaces that reflect the high quality of care we aim to deliver.

The Office Real Estate Sector’s Post-Pandemic Reality

The office real estate sector is currently facing steep discounts in asset values due to post-pandemic effects and rising interest rates, with average property values down by at least 25%, according to the latest U.S. office market report.

The downward trend in office valuation is more pronounced in older and less ideally located buildings. Over 20% of office properties sold since the start of 2023 have fetched lower prices than their previous sales. CBD offices have been hit the hardest by the changes wrought by the pandemic, with 35% of properties trading at a lower sale price last year.

For example, in Washington, D.C., a 13-story building with ground-floor retail sold for $18.2 million in 2023, down 70% from its 2017 price tag of $61.8 million. At the same time, only 21% of properties sold in the suburbs recorded a decline in value.

The lack of transactional volume makes comp identification more difficult, but lower-end buildings not in prime locations are suffering and we expect that trend to only accelerate, notes Peter Kolaczynski, Director at CommercialEdge.

The office market outlook for 2024 suggests an increase in these discounted sales, driven by high rates and reduced demand. The market is adjusting to these challenges, with a noticeable shift in the bid-ask gap and an increase in loan defaults, hinting at continued upheaval in the sector.

Office Real Estate Market Insights as of January 2024

The table below summarizes key statistics on office space listing rates, changes in those rates over the past 12 months, total vacancy rates, and notable changes in those rates, alongside top listings with their respective price per square foot across various markets. This data provides insights into the current state of the office real estate sector, revealing trends and market adjustments in response to various economic factors.

MarketListing Rate (Jan-24)Change (12-Month)Total VacancyVacancy Change (12-Month)Top ListingPrice/Sq Ft
National$37−1.80%18.00%130 bps
Boston$4625.80%12.50%310 bps200 Clarendon Street$83.00
New Jersey$345.40%19.70%270 bpsNewport Tower$54.80
Tampa$305.10%13.30%−310 bpsWater Street Tampa – Thousand & One$61.50
Atlanta$313.60%17.80%−220 bps300 Colony Square$52.00
Detroit$221.90%25.40%550 bpsOne Campus Martius$39.13
Denver$301.50%22.20%390 bps200 Clayton Street$73.00
Twin Cities$260.70%16.90%190 bpsOffices at MOA, The$40.00
Chicago$28−0.30%18.10%−130 bpsInnovation and Research Park$75.00
Phoenix$28−0.30%18.60%160 bpsCamelback Collective$55.00
Washington D.C.$40−0.30%17.10%340 bps455 Massachusetts Ave NW$76.00
Austin$41−0.40%22.00%290 bpsIndeed Tower$83.77
Philadelphia$31−1.00%13.90%−20 bpsTwo Liberty Place$53.50
Seattle$38−1.00%23.00%450 bps1208 Eastlake Avenue East$94.00
Houston$29−2.00%24.30%−170 bpsTexas Tower$62.90
Source: Data provided by CommercialEdge as of January 2024. The national listing rate reflects an average across the top 50 markets, with rates representing full-service or equivalent rates for available spaces.

Sublease Medical Office Space FAQs

What is medical space?

Medical space subleasing is when a tenant rents out all or part of their medical office space to share with another business. This can be a great way to save money, as the new tenant will usually be responsible for a portion of the rent.

How can I grow my healthcare practice?

To grow your healthcare practice, focus on providing exceptional patient care, embracing digital marketing strategies, seeking patient feedback for continuous improvement, networking with other professionals, and utilizing technology for efficiency. Offering telehealth services can also expand your reach and accessibility.

How do you manage a small medical office?

There are a few things to keep in mind when subleasing space. First, you need to make sure that you are clear about what each party is responsible for in terms of utilities, janitorial services, and so on. You should also sign a legal agreement that outlines the terms of your arrangement. Additionally, it is important to be clear about the hours and days of operation to avoid any conflict.

How can I make my doctor’s office more efficient?

Implement electronic health records, optimize appointment scheduling, streamline front desk operations, adopt telehealth services, and continuously train staff. Efficiently delegate tasks and utilize feedback systems to identify improvement areas, enhancing patient care and office operations.


Leasing shared medical office space is a big decision. You want to make sure you have all the facts before signing that lease agreement. At Tolj Commercial, I’m here to help you through the process every step of the way. I offer free consultations so you can ask any questions and get all the information you need to make an informed decision about your next steps. Give me a call or schedule a free consultation online today, and let me help you take your business to the next level.

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