SPECIAL REPORT

  real estate

Thinking About Relocating?

These six tips provided by your colleagues can help.

OPTOMETRIC MANAGEMENT STAFF

It’s been five and six months, respectively, since former optometry school classmates, Gina Wesley, O.D., M.S., F.A.A.O., of Medina, Minn., and Jeff Klosterman, O.D., of Harrodsburg, Ky., opened their individual new practice locations. Given the nightmarish stories often associated with the relocation process, we decided to pick their brains to find out what they learned from the experience.

Dr. Klosterman’s new practice (top) is 3,500 square feet with a drive-through pick-up window for contact lens patients. Dr. Wesley’s new practice is 3,500 square feet with a 900 square feet second level and six exam lanes.

Here’s their advice for others contemplating moving their practices.

1 Consider building from scratch.

While buying an existing structure and remodeling it may sound less expensive than building your own facility, this isn’t always the case, the two O.D.s say.

“I found that renovation costs from contractors were as much as 50% to 75% of the purchase price,” Dr. Klosterman explains. “The biggest cost surprise was the uncertainty of what the contractors would run into as they renovated.”

So, in November 2012, Dr. Klosterman officially purchased a commercial lot in a growing development on the edge of his town.

Dr. Wesley says she didn’t consider renovating an existing building for three reasons: (1) the availability of buildings that would suit her practice was minimal, (2) she knew retrofitting an existing layout would impede her ability to get “exactly” what she wanted, and (3) she wanted to invest in land and building ownership for financial reasons. She purchased her plot of land in July 2013.

“This new location is just one-half mile away from my current location, but in a much more visible location,” she says.

Dr. Klosterman adds that in addition to close proximity to the prior location and increased exposure, an ideal practice location should also provide easy public access.

2 Familiarize yourself with building codes.

Realize that you, as the buyer, must adhere to both city and state building codes to operate your business, and these codes can greatly alter your building plans. Therefore, don’t plan your space until you’ve familiarized yourself with these codes, say Drs. Klosterman and Wesley.

“I grossly underestimated the amount of seemingly frivolous building codes that leaked into and modified my building plans,” Dr. Klosterman explains.

An example: extra fire exits because lighted EXIT signs must be viewable from virtually every viewing angle of every hallway and open space in the building.

Dr. Wesley says the most expensive requirement for her new office was a sprinkler system.

“I found that this was an ‘unusual’ stipulation for a building of my size per most cities’ codes, but my city was adamant about it,” she explains.

She adds that paying attention to these details did help in ensuring economical decisions were being made for these “sometimes frustrating mandates.”

3 Choose your builder based on involvement.

If delegating the oversight of the entire relocation project sounds ideal, a general contractor (G.C.) is your best bet, says Dr. Klosterman.

“My general contractor not only understood my vision for the new practice, but he even expanded on it to make it better, all while allowing me to keep my current practice up and running and live life with my family,” he explains. “The pressures of vetting subcontractors, scheduling the subcontractors for an efficient build on a tight time line and making decisions quickly, without bothering me in my practice, were shouldered eloquently by my G.C.”

If you desire a management role in the process, hire a builder, says Dr. Wesley.

“I found a builder whom I felt listened to what I wanted to accomplish and actually respected my budget. Then, I allowed that builder to recommend an architect so the whole process could be a ‘design-build’ flow,” she explains. “This ensured the builder kept the architect in check, while the architect ensured the builder understood what I needed and wanted from a design point.”

4 Communicate your vision clearly.

Leaving room for interpretation often results in disappointment and extra dollars. Be candid with your builder about the office design you desire by presenting a floor plan, discussing patient and staff flow and presenting photos of design elements you like, explains Dr. Wesley.

“I essentially communicated to the builder and architect of my desire to pay attention to the details, such as room placement, design aesthetic and sight lines by patients, and be very involved in each step of the process, so they understood my needs as their customer,” she explains. “I found this tremendously helpful, as did they because they knew I could make decisions and give them a lot of guidance vs. indecisiveness.”

5 Ensure a “guaranteed maximum price.”

Give yourself financial peace of mind by requesting the builder’s contract contain a guaranteed maximum price, says Dr. Wesley.

“No matter what, I knew when I signed on to build with him [the builder], I was going to spend no more than that dollar amount, and I actually ended up spending less,” she explains. “Additionally, I wrote into the contract the exact date I wanted to move. If he went past this date, he began paying me to compensate for potential lost revenues. He was spot on, and I moved in exactly on schedule.”

6 Get the new location “practice-ready.”

To facilitate the move, consider built-in furniture and desks, suggests Dr. Klosterman. Also, have new phones, office equipment and custom frame displays all set, so you can complete the finishing touches while maintaining practice in your current building.

“Since my practice is located in a small town, and my new location is less than two miles away, I closed my schedule for a Thursday and Friday, allowing me, the movers and three of my employees to concentrate on the move to the new building,” he explains. “Two employees stayed at the old location to maintain office hours, answer the phone and dispense glasses and contact lenses as usual. We had everything moved by Friday afternoon and closed the office Monday to allow for organization, logistical planning on our new patient flow and to tie up any loose ends.”

Dr. Wesley suggests you hire an equipment specialist who can quickly move and reinstall your pre-test and exam room equipment to prevent equipment damage and practice opening delays.

Opening your new doors

Relocating one’s practice is never without difficulty and stress. That said, these six tips can make the process less of a hassle, allowing you to recover potential sleepless nights, say Drs. Klosterman and Wesley. OM