A Win/Win Proposition
A pharmacy in a health centre is a winning combination.
It works commercially for the pharmacy company and it works commercially for whoever is taking the risk to build the new health centre.
Business Case
An integral pharmacy may occupy 10% of the space in a new centre, whereas the associated rental income might finance up to 30% of the interest arising on the capital borrowings required to construct the building, or the renovation costs of an existing one.
Further, a capital lump-sum is sometimes offered by the pharmacy company, which can amount to a significant contribution towards the initial capital outlay, so reducing the up-front borrowing requirements in the first instance.
A combination of these would be the ideal scenario for the prospective landlord who is taking the development risk.
Crucially, the extent of the rent offered by a pharmacy company is, understandably, directly related to the commercial opportunity arising. ie the number of patients to be served at the new health centre and the volume of prescriptions likely to be issued to them.
DLA Health Centre Pharmacy Consultants
DLA is a firm of health centre pharmacy consultants and with our industry experience we can anticipate the levels of rent that a prospective health centre might attract from a pharmacy company if a pharmacy space were to be included in the design.
We can also help determine the optimal size and footprint for a pharmacy unit given the patient list size of the GP practice(s) to be accommodated in the new health centre.
We can follow this up with a robust process for soliciting rent offers from local pharmacy companies or we can engage & persuade & negotiate lease terms where there is only one pharmacy in the vicinity.
We do ask our clients to please note that, whilst we have considerable experience of establishing pharmacy agreements, we are not financial advisors.