Maintain the right to relocate tenants and sell the rental units as condominiums. In a hospital, the most profitable use of space often changes over time. Space may have been leased in a hospital building during a period of excess capacity. Later, a hospital may be precluded from adding additional beds or installing a profitable new service or department because of existing leases. A new group might be recruited whose space needs can be accommodated by moving an office. A needed building addition may require the movement of one or more tenants. Provided that a hospital agrees to pay for all direct costs associated with moving, it should reserve the right to relocate any tenant to reasonably comparable space.
In many instances, the sale of office suites to physicians as medical office condominiums makes economic sense for both hospitals and physicians. Condominium conversion is a complex topic in itself, but the opportunity to convert need not be precluded by existing leases. A reasonably long notice (possibly one year) and an opportunity to buy at a favored price (10 percent to 20 percent below offering) are fair and reasonable tradeoffs for the inclusion of this choice.