Psychiatry Office

[TexasPhysician]

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I have a psychiatry business question for the forum:

There is an office for sale within an office park in my target area. I current lease an office a few miles away. My practice is cash-only, and I am child trained. Purchasing would lower my overhead increasing profit at 1k+ each month.

Everything looks great except for high-voltage power lines about 200ft from the office, and what appears to be an electrical relay station (transformers, etc) 500ft away. From the office, I would be able to see the lines, but not the rest as other buildings hide most of the electrical stuff.

My attorney brought a possible issue to my attention that I didn't consider:

Would I lose patients concerned about health hazards of the high voltage lines or paranoia?

As local real estate is hot and this is the only office park within 10 miles that sells individual units, the alternative is at least 80k more to purchase or continue leasing.

What are your thoughts and what would you do?

 

[PistolPete]

I'd take it. As a cash-pay psychiatrist, I can't imagine you'd have that may patients that are so paranoid about the voltage lines that they won't come see your, or follow you to your new office. Just my $0.02.

 

[st2205]

If we play devils advocate and say you lose business to health-conscious and paranoid patients, will that lost demographic cost you 1k/month?

 

[TexasPhysician]

If we play devils advocate and say you lose business to health-conscious and paranoid patients, will that lost demographic cost you 1k/month?

That's what I'm struggling with. How big a loss if any would you estimate?

 

[st2205]

That's what I'm struggling with. How big a loss if any would you estimate?

I wouldn't imagine any. But you know your patient population better than I.

 

[deleted314290]

Paint a mural on the parking lot, that way everyone is looking down, not up.

 

[smalltownpsych]

If you aren't personally worried about any health issues from the power lines, then most of your patients should be reassured as you are a doctor. The paranoid patient will find anything to worry about and my experience is that they miss what we would see as the seemingly obvious and worry about the more obscure.

 

[notdeadyet]

Your paranoid or anxious patients will likely hit Google and dive into the conspirational EMF rabbit hole. But even among most of that community, you're far enough away.

I know more about this stuff than I'd like due to a particular therapy case.

 

[Bartelby]

Is this place that far below market value (80k less then the next option) because of the views?

I think there's a reason the lawyer and not the psychiatrist thought of this concern. Knowing the psychiatric patient population it just doesn't seem likely to be an issue. Now if the view is ugly you have to weigh whether the office discount is worth it. Based on your description the answer is probably yes.

 

[F0nzie]

I have less concerns about the paranoid patient and more concerns about how environmental cues such as high voltage powerlines may have a subconscious impact on your patients every time they arrive and leave your office. The fact that you are even thinking about this may be telling you something.


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[TexasPhysician]

Is this place that far below market value (80k less then the next option) because of the views?

It's cheaper due to it being part of the only office park around as well. Each building there is 1 story with 10 units. The units share parking, walls, roof, initial builder profit, etc to keep costs low.

The other option is me building or purchasing a stand alone office with parking/lighting. I'd take the entire cost instead of sharing it.

The street is an excellent street near a major freeway. Downside is the views of power lines and an EMF zone or whatever.

Alternative would be farther from the freeway, on a less busy road, and higher costs. This alternative location would be nearer other physician offices though and away from power lines.

 

[dl2dp2]

It's cheaper due to it being part of the only office park around as well. Each building there is 1 story with 10 units. The units share parking, walls, roof, initial builder profit, etc to keep costs low.

The other option is me building or purchasing a stand alone office with parking/lighting. I'd take the entire cost instead of sharing it.

The street is an excellent street near a major freeway. Downside is the views of power lines and an EMF zone or whatever.

Alternative would be farther from the freeway, on a less busy road, and higher costs. This alternative location would be nearer other physician offices though and away from power lines.

I think Fonz makes a great point. The main issue is location PER SE, rather than the power line. I suspect it's cheap because the location is too isolated. If I were you I'd buy a good piece of commercial real estate that communicates "fancy", even if it means a bigger investment early on. The "only office park around" makes it sound really scary. Cheap real estate often doesn't appreciate as well, and that's another layer of consideration.

I think if you are doing full time PP, buying is a great thought for all kinds of reasons, but as with buying a home, buying an office should be a considered decision.

 

[TexasPhysician]

I think Fonz makes a great point. The main issue is location PER SE, rather than the power line. I suspect it's cheap because the location is too isolated. If I were you I'd buy a good piece of commercial real estate that communicates "fancy", even if it means a bigger investment early on. The "only office park around" makes it sound really scary. Cheap real estate often doesn't appreciate as well, and that's another layer of consideration.

I think if you are doing full time PP, buying is a great thought for all kinds of reasons, but as with buying a home, buying an office should be a considered decision.

The office park is actually brand new and in a great location otherwise. This would be a no-brainer without the high voltage lines. I'm in a relatively new, suburban residential area. Most of the area is master-planned by large corporations that sell nice homes and retain the commercial areas for leasing. This makes decent commercial real estate scarce if you want to buy. The office park is a little hidden behind a nice shopping center, but I don't get current business from drive-bys anyway. The office park is relatively surrounded by middle class + neighborhoods.

My attorney is a smart guy that I trust, but he may be a little too caught up in the EMF paranoia. I don't recall an EMF lecture in med school, so I recognize my ignorance in regards to this area.

 

[dl2dp2]

The office park is actually brand new and in a great location otherwise. This would be a no-brainer without the high voltage lines. I'm in a relatively new, suburban residential area. Most of the area is master-planned by large corporations that sell nice homes and retain the commercial areas for leasing. This makes decent commercial real estate scarce if you want to buy. The office park is a little hidden behind a nice shopping center, but I don't get current business from drive-bys anyway. The office park is relatively surrounded by middle class + neighborhoods.

Huh...Interesting. I seriously don't think the typical PP patient would notice...just having power lines out of the window would be totally fine...but I haven't seen it. Post photos? lol.

 

[vistaril]

I have a psychiatry business question for the forum:

There is an office for sale within an office park in my target area. I current lease an office a few miles away. My practice is cash-only, and I am child trained. Purchasing would lower my overhead increasing profit at 1k+ each month.

Everything looks great except for high-voltage power lines about 200ft from the office, and what appears to be an electrical relay station (transformers, etc) 500ft away. From the office, I would be able to see the lines, but not the rest as other buildings hide most of the electrical stuff.

My attorney brought a possible issue to my attention that I didn't consider:

Would I lose patients concerned about health hazards of the high voltage lines or paranoia?

As local real estate is hot and this is the only office park within 10 miles that sells individual units, the alternative is at least 80k more to purchase or continue leasing.

What are your thoughts and what would you do?

I thought the question about rexulti a few weeks ago was the most hilarious I'd seen this year.....this one just may top it.

 

[lymphocyte]

My attorney is a smart guy that I trust, but he may be a little too caught up in the EMF paranoia. I don't recall an EMF lecture in med school, so I recognize my ignorance in regards to this area.

Better Call Saul

 

[Sushirolls]

A cheaper, not as nice, less ideal part of town, but larger office space was available when I first started looking for a place. One of my decisions to not go with it was the large powerlines in close proximity. Figure it influenced about 5-10% of the decision.

Let's talk about the nuances of playing the classic dentist card, and buying land or an existing office for a Psychiatry practice. Who out there has done this? What have you learned, done right, done wrong? Did you keep it small just for your practice or go larger as more of an investment property with other tenets? Did you hire a 3rd party management company for the rental side of the office? Please share experiences.

 

[NickNaylor]

Patients and families get free rTMS? Sounds like a good deal to me.

 

[WisNeuro]

My attorney is a smart guy that I trust, but he may be a little too caught up in the EMF paranoia. I don't recall an EMF lecture in med school, so I recognize my ignorance in regards to this area.

Nothing too special about the EMF-paranoid folks. They're just another species of somaticization .

 

[OldPsychDoc]

Better Call Saul

Just don't call his brother!

 

[nrmp]

I would take it to cut down overhead which is very significant. In psychiatry you will find enough patients, specially when you are already established, I think you are overly worried for something that people like me would never notice 🙂

 

[samac]

Very interesting 3-year-old thread. It is even more fun because because Texas is so helpful in this forum.
Whaddya end up doing?

 

[TexasPhysician]

Very interesting 3-year-old thread. It is even more fun because because Texas is so helpful in this forum.
Whaddya end up doing?

Wow. 3+ years ago thread bump.

I did purchase an office condo there, but I did choose the 1 furthest from the high voltage lines. With the other buildings up, I don’t really notice the lines. Never had a patient comment on them yet.

After a 30% downpayment, my monthly rent/fees are about 1/2 of what it would be renting.

Pros: The business park is nice with other physicians, PT, optometry, and other professional businesses. The association covers all landscaping and security. I don’t have to micromanage anyone.

Cons: I’m getting to the point of expansion and with a business park, I can’t just add-on to what I have. At least I can’t do so without buying the adjacent unit, and they aren’t selling.

I’m getting a bit lucky as the builder is expected to build another complex in an area that would be a little better in my opinion. I’ll probably buy a bigger unit and rent this one.