Site selection
Choosing a site for a medical practice
Health MediCo™ Advisory · 2 July 2026 · 8 min read
A medical tenancy is a ten-year decision made in a few weeks. The premises that look best on inspection are frequently not the premises that will deliver patient volume, and the difference only becomes visible once the fit-out is paid for.
Catchment first
Start with the population you intend to serve: demographics, growth, existing provider density and referral relationships. A site five minutes further from the catchment centre can change patient volumes measurably.
For specialist practices, proximity to referring GPs, hospitals and imaging matters more than passing foot traffic. For primary care, visibility, parking and public transport usually dominate.
- Map existing provider density before committing to an area
- Test drive times from the catchment centre at clinic peak hours
- Confirm referral proximity for specialist and procedural practices
Compliance and fit-out reality
Floor-to-ceiling heights, services capacity, accessible amenities, waste handling and plumbing runs decide whether a clinical fit-out is straightforward or ruinous. Two tenancies with the same rent can differ by hundreds of thousands of dollars in fit-out cost.
Have the shortlist reviewed by a clinical fit-out specialist before terms are agreed — not after the heads of agreement is signed.
Structure the deal to the risk
New sites carry ramp-up risk. Terms should reflect that: stepped rent through the ramp-up period, fit-out contributions, an early expansion right and clear make-good limits.
- Negotiate a rent-free period covering fit-out and ramp-up
- Secure expansion or first-right options on adjoining space
- Cap make-good so the fit-out you fund is not one you pay to remove
Key takeaways
- Catchment analysis should precede any property inspection
- Fit-out feasibility can outweigh a rent difference entirely
- Ramp-up risk belongs in the lease terms, not on your balance sheet

