Lease Vs. Own: Cost Estimate Sample for 2-Surgery-Suite ASC Development

This sample pro forma compares ownership versus a 15-year lease option for a sample two-surgery-suite, 8,500 square feet ASC development. It is still not quite an apples-to-apples comparison, because the leasing option would make more sense for a group going in a larger medical office building, whereas the ownership option makes more sense for a freestanding structure.

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*Assumes a 1.5 percent increase in building value per year.

Mr. Eckert (JeffE@eckert-wordell.com) is senior principal with Kalamazoo, Mich.-based Eckert Wordell. Mr. VanderVeen (jlvanderveen@mwvanderveen.com) is president of MW Vanderveen, also based in Kalamazoo.

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