Rental estate rental values for veterinary practices

Rental estate rental values for veterinary practices

I retired and sold my practice 15 years ago. I'm wondering if it is still standard to lease at 10 percent to 12 percent to real estate value?
source-image
Jul 01, 2012
By dvm360.com staff

Q: I retired and sold my practice 15 years ago. I'm wondering if it is still standard to lease at 10 percent to 12 percent of real estate value?

"The rates we see in today's reports tend to range from 8 percent to 10 percent because interest rates for real estate mortgages are at historic lows," says Veterinary Economics Editorial Advisory Board member Gary Glassman, CPA, a partner at Burzenski and Co. in New Haven, Conn. "I'm not a real estate appraiser, so I can't quote you a specific rate, but I can tell you that one of the valuation methodologies used by many appraisers
is to capitalize the earning stream of the property by a capitalization rate."

Hot topics on dvm360

Follow dvm360 on Twitter, Facebook, and Pinterest

For quick updates and to touch base with the editors of dvm360, Veterinary Economics, Veterinary Medicine, and Firstline, and check us out on Twitter, Facebook, and Pinterest.

Sell veterinary clients on your service

But you don't have to have butler-style service to win new clients and keep existing clients happy.

Why veterinarians should be more like a Louisiana shoeshiner

If my veterinary clients feel half as good as I did after visiting the 'Michael Jordan of shoeshines,' I'll be thrilled.

Texts from your veterinary clinic cat

If your clinic cat had a cell phone and opposable thumbs, what would he or she text you?

Learning goodbye: Veterinarians fill a void by focusing on end of life care

Veterinarians dedicating their careers to hospice and euthansia medicine may be pioneering the profession's next specialty—at clients' request.