Commercial Real Estate Blog

Understanding the Differences: Medical Office vs. Retail Spaces in Northern VA

Medical Office vs. Retail When it comes to commercial real estate in Northern VA, understanding the disparities between medical office and retail spaces is crucial for making an informed decision for your next medical site.

Lease Structures: Medical office leases often offer full-service arrangements, encompassing all occupancy costs like base rent, utilities, taxes, and cleaning. On the other hand, retail leases typically follow NNN (Triple Net) structures, where tenants pay base rent plus additional costs such as insurance, taxes, and Common Area Maintenance (CAM).

Concessions Offered: Office leases commonly provide more concessions like tenant allowances towards buildout and free rent periods compared to retail leases which are less likely to offer competitive concessions.
Location and Buildout: Retail spaces boast high visibility and accommodate diverse uses such as food, apparel, and recreation. In contrast, medical offices may lack visibility but can foster referral opportunities with neighboring medical practitioners. Additionally, medical offices tend towards traditional layouts, while retail spaces offer more flexibility in buildout.

Market Dynamics: Retail rental rates are generally 35%-45% higher than office rates. The retail market is competitive, with decreasing vacancy rates, while the office market sees tenants with more bargaining power and landlords experiencing diminishing pricing control. It 39’s important to understand your leverage in the market when negotiating for concessions in a transaction.

Considerations for Your Business: Your choice between medical office and retail space should align with your business vision. Are you seeking a vibrant environment with eateries and diverse retail offerings, or do you prefer a professional setting surrounded by other medical practitioners? Consider your layout preferences and desired atmosphere carefully.

Understanding these differences is pivotal for selecting the optimal space to support your business goals in Northern VAs evolving medical real estate landscape.

read more

June 28, 2024

Alexandria Chamber of Commerce Business Leader of the Year: Donnie Simpson

Donnie Simpson and Mike Porterfield

Recently I had the honor to introduce the Alexandria Chamber of Commerce Business Leader of the Year Donnie Simpson at the annual Best in Business Awards event. In preparing my remarks I had the opportunity to reflect on the power and importance of role models in my life.  (more…)

read more

October 18, 2023

Observations of Legacy Businesses

Recently I had several wildly different customer experiences with legacy automotive companies that left me thinking about how our customers feel about their interactions with TARTAN. (more…)

read more

September 11, 2023


Where Is Your Leverage?

As with any negotiation, understanding your value and knowing where you have leverage is essential to any transaction. The size of your company, your track-record and financial strength are what you bring to the table. If you are in the market for office space, or any commercial space, understanding each party’s position will help you negotiate efficiently to procure the most favorable terms.


read more

June 12, 2023

Five Things to Negotiate in Your Next Lease

Negotiating concessions in a commercial lease transaction is largely about tailoring certain aspects of the deal to fit the needs of your business. If you work with your real estate advisor you can successfully map out your objectives and priorities.


read more

May 4, 2023

Follow us on Tiktok
Follow us on Facebook
Site map - © 2017 Tartan Properties Commercial, All Rights Reserved.