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

Dog of Dallas Ebola patient will not be euthanized, authorities say

Health officials have quarantined and will monitor dog and amid concerns surrounding deadly virus.

Video: How to perform a belt-loop gastropexy

Prevent GDV in your at-risk patients with this simple technique.

Stretch your skills to earn more in veterinary practice

Finding new tasks could be the key to generating more income for your practice—and boosting your pay.

Veterinary community stunned by Sophia Yin's unexpected death

Prominent veterinary behaviorist died of suicide Sept. 28.

Study shows sustained salary slump for veterinary support staff

Since 2009, technicians paid by the hour have experienced a bump in pay, but pay for other team members has stayed stagnant, according to data from the 2014 Firstline Career Path Study. Here’s a look at changes in team pay from 2009 to 2013.