Commercial Real Estate Development for Medical Practices

Vincent Tripodina, Avant Law - Special Counsel, Property

Monday, 5 May 2025

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Commercial real estate development involves transforming a raw piece of land or an existing structure into a functional space that meets specific needs. For medical practices, this means developing the land so that it supports patient care, administrative functions, and specialised medical services.

We have set out below some of the key steps of the development process and a guide to buying your first commercial property.

Key Steps in the Development Process

  1. Site Selection and Evaluation

    - Identify a location that is accessible to patients and staff, with considerations for parking, public transport, and proximity to other medical facilities.
    - Conduct due diligence and feasibility studies to ensure the site is suitable for the proposed purpose. This includes checking zoning regulations, soil conditions, and utilities.
    - Negotiate terms to lock-in interested tenants or buyers.
  2. Contract Negotiations

    - Negotiate terms with property owners, contractors, and suppliers to ensure favourable conditions for your practice.
    - Secure agreements that cover construction timelines, costs, and quality standards.
  3. Zoning and Entitlements

    - Work with local authorities to obtain necessary permits and approvals.
    - Ensure the site complies with healthcare-specific regulations and standards.
  4. Architectural and Engineering Studies

    - Collaborate with architects and engineers to design a facility that meets the unique needs of your medical practice.
    - Consider factors such as patient flow, equipment requirements, and safety standards.
  5. Financing the Project

    - Explore financing options, including loans, grants, and partnerships.
    - Develop a financial plan that covers all aspects of the project, from initial investment to long-term maintenance.
  6. Construction Management

    - Oversee the construction process to ensure it stays on schedule and within budget.
    - Address any issues that arise promptly to avoid delays.
  7. Leasing and Sales Coordination

    - If the development includes multiple units, coordinate leasing or sales efforts to attract other medical professionals.
    - Ensure the facility is marketed effectively to reach potential tenants or buyers

Buying Your First Commercial Property

  1. Choose Your Niche and Educate Yourself

    - Focus on the type of property that best suits your medical practice, such as clinics, hospitals, or specialised treatment centres.
    - Educate yourself on commercial real estate investing through books, podcasts, and networking with other investors
  2. Build Your A-Team

    Assemble a team of professionals, including a real estate agent, lawyer, mortgage broker, and financial advisor, who specialise in commercial properties for medical use.
  3. Underwrite the Investment

    Analyse the financial aspects of the property, including purchase price, renovation costs projected rent, and financing options
  4. Make Offers and Negotiate

    Make informed offers based on your underwriting analysis and negotiate terms that align with your financial and operational goals
  5. Close the Deal

    Finalise the purchase by securing financing and completing the conveyance process.

Developing a commercial property for a medical practice involves careful planning and execution. By following these steps, you can create a facility that enhances patient care and supports the growth of your practice.

We can help you

Avant Law is a full scope commercial law firm aligned with Avant Finance which specialises in the medical sector.

If you have any questions, or would like more information about how we can assist you or your practice, please call 1800 867 113, or to organise a confidential discussion at a time that suits you, please click here 

About the author

Vincent Tripodina

Vincent has 18 years of experience as a seasoned property lawyer. In that time has acted for major healthcare and aged care providers, as well as private doctors, surgeons, specialists, medical companies and hospitals. Vincent is known for offering clear legal advice with a commercial focus, specialising in aligning legal strategies with business goals and providing practical solutions. 

The information in this article does not constitute legal advice or other professional advice and should not be relied upon as such. It is intended only to provide a summary and general overview on matters of interest, and it is not intended to be comprehensive. You should seek legal or other professional advice before acting or relying on any of its content. The information in this article is current to 28 April 2025. Liability limited by a scheme approved under Professional Standards Legislation. Legal practitioners employed by Avant Law Pty Limited are members of the scheme.



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