Street | Sotheby's International Realty Medical is a trusted provider of credible real estate information and a skilled interpreter of that information for those who demand exceptional service. We provide our clients with the information and tools to make the right decision for themselves. Call Tom Dalcolma or Dr. Gerard M Papp to learn more. www.streetmedicalrealty.com

1. Top 10 Real Estate boo-boos That befall physicians 3/9/2011 © Street Sotheby’s International Realty

2. The Top 10 List 1. Not allowing enough time 2. Neglecting long-term priorities 3. Inadequate real estate representation 4. Insufficient timing to transition to new space 5. Underestimating condition of the premises 6. Using the landlord’s real estate professionals 7. Miscalculating true space costs 8. Paying too much rent 9. Not asking for enough landlord incentives 10. Not using a medical realty specialist 3/9/2011 © Street Sotheby’s International Realty

3. # 1 Not Allowing Enough Time Begin the lease negotiation process at least 12 months in advance. The closer you get to your lease end date the more leverage your landlord has over you. Lease renewal Examine other opportunities in the marketplace Compare your lease rental rates and tenant improvement allowances against other buildings to use to your negotiating advantage. New Lease Finding the right location, the right building and the right space takes time, can take months to negotiate. Most likely new space needs tenant improvements before move-in Permits for design renovation and occupancy take time Purchase Consider purchasing an existing building first and retrofit it for medical use shortens the amount of time and may be less expensive. Build New Process can take up to two years, so start early 3/9/2011 © Street Sotheby’s International Realty

4. # 2 Neglecting Long-Term Priorities Don’t get caught with expansion problems in the future. Obtain expansion space and lease terms now at the outset,whichwill allow a physician to expand, downsize, or relocate according to future needs Utilize Expansion Rights Clause Utilize Cancellation Right Clause Utilize Extension Right Clause Utilize Sublet Right Clause Develop a schedule to move to a new location and use your professional realtor to help you achieve that 3/9/2011 © Street Sotheby’s International Realty

5. # 3 Inadequate Representation You use an accountant to file your tax forms, a lawyer to offer legal counsel and you should use a professional realtor® to represent your real estate interests It will saves time, headaches and money Increase access to multiple commercial listings Leave the negotiating to a pro to obtain the best rates, terms, incentives and lease clause protections This valuable service is usually free to the physician since tenant real estate agents share in the leasing fees paid by the landlord or seller 3/9/2011 © Street Sotheby’s International Realty

6. # 4 Insufficient Time to Transition to New Space This can be a disaster with unexpected delays in the planning, permitting, and construction stages consume the rent-free build-out period. Use a medical realtor to suggest a list of qualified professionals, architects, builders, space planners. The realtor should also propose a clause which provides for an extension of the lease commencement date if pre-opening delays are encountered which are beyond the control of the physician. 3/9/2011 © Street Sotheby’s International Realty

7. # 5 Underestimating Condition of the Premises Physicians who take a property or space “as-is” put themselves at great risk. Building codes change. Inspection by a professional Landlord guarantees are a must. No one can visually see how well the electrical, heating, ventilation and air conditioning systems are functioning until you occupy the space 3/9/2011 © Street Sotheby’s International Realty

8. # 6 Using the Landlord’s Professionals Physicians should use their own real estate agents, architects, general contractors, and legal counsel to control the various space plans, specifications, costs and documents. 3/9/2011 © Street Sotheby’s International Realty

9. # 7 Misunderstanding True Space Costs It is difficult to compare “apples to apples’ when looking at commercial medical real estate. Understanding the different lease types such as: Full Service, Gross, Semi-Gross, net, Triple Net … Understanding base rent, tenant improvements, cam charges are all part of the comparison equation. Costly errors continue for the duration of the lease. 3/9/2011 © Street Sotheby’s International Realty

10. # 8 Paying Too Much Rent Failure to obtain accurate, current market research may lead to rental rates and operating costs that are too high. Landlord’s rates and terms change constantly depending upon many factors including occupancy rates in their building and the competition, lease length, tenant’s use, parking requirements, financial strength of tenant… There are NO standard leases ALL LEASES ARE NEGOTIABLE! 3/9/2011 © Street Sotheby’s International Realty

11. # 9 Not Enough Landlord Incentives Inexperience may hinder your ability to obtain negotiable incentives. Typical incentives include periods of free rent both before and after lease commencement, discounted rent for various time periods, landlord contributions to build-out costs, landlord improvements to the space, caps on future rent increases and operating costs… 3/9/2011 © Street Sotheby’s International Realty

12. # 10 Not Using a Medical Realty Specialist Street | Sotheby’s Medical is the only brokerage team in Central Ohio solely dedicated to medical properties. They are the provider of credible medical real estate information and are skilled interpreters of that information. 3/9/2011 © Street Sotheby’s International Realty

13. For more information or a free consultation please contact: Gerard M. Papp D.O. gerard.papp@sothebysrealty.com O-614-538-8895 EXT 188 C-614-531-8887 TOM DALCOLMA thomas.dalcolma@sothebysrealty.com O-614-538-8895 EXT 180 C- 614-439-5311 3/9/2011 © Street Sotheby’s International Realty