Animal Health Solutions

23 Q2 2022 | Animal Health Solutions STEP 5 – Negotiate the details in the veterinary office lease The lease is a much more in-depth contract than the OTL or LOI. Considerations in the lease: • Economics: Are the rental rates for the new space fair and comparable to rates in your current space? Are the annual escalations reasonable? • Build-out time frame: How much time will your landlord allow for your build-out prior to charging rent on the space? Typically, a landlord will offer their tenants a "free-rent" period until the build-out is complete and you are ready to open. • Tenant Improvement (TI) allowance: Will your landlord offer you a tenant improvement allowance to allocate towards building out your new office? If a TI is offered, will it negatively impact the rental rates by driving them up? • Associates: Does the lease give you the flexibility to bring in associates? • Use provisions: Does language in the lease permit you to offer all forms of veterinary care, or are there "use" provisions present that restrict you from offering a certain type of service like grooming, or selling certain items like pet food or animal hygiene products? STEP 6 – Finalize designs, finish construction, open doors! Work with your design team to confirm the layout and design of your office and to finalize budgets. Confirm equipment orders, acquire appropriate permits, and schedule the construction of your office build- out. Begin construction, renovations, and the delivery and installation of veterinary equipment. Once complete, prep your team, stock the office, apply the finishing touches and open your doors! About the author Eric Pook is the President of Cirrus Consulting Group, North America's preeminent commercial real estate and office lease negotiation firm for veterinarians. Eric has been consulting small businesses since the late 90's with an emphasis on revenue creation and cost mitigation. Eric advises doctors each day on how to successfully leverage the veterinary office lease agreement to maximize practice value while reducing risk and liability. You can contact Cirrus at 1.800.459.3413, info@cirrusconsultinggroup.com or cirrusconsultinggroup.com. Schedule a complimentary 30-minute consultation call Cirrus Consulting Group is North America's preeminent office lease negotiation and tenant representation firm for veterinarians. Founded by doctors for doctors over 27 years ago, they are passionately devoted to improving the business of healthcare by supporting the people within it, including veterinarians, dentists, family physicians, and more. Whether you're a veterinarian who is starting a clinic, buying or selling a clinic, relocating, expanding, planning for retirement, or seeking advice about how to manage the lease portfolio, Cirrus Consulting Group's negotiation experts can help. Schedule a complimentary 30-minute consultation call with one of their veterinary real estate and leasing experts by visiting cirrusconsultinggroup.com/contact. Contact your Covetrus representative or email ProjectPartner-NA@ covetrus.com to begin planning your new space.

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