Are you maximising the rental income you receive from your pharmacy tenant?

A co-located Pharmacy is a Pharmacy that is attached to a GP Surgery or positioned separately but on the grounds of the GP Surgery building.  As the GP Surgery is a significant source of the business for the Pharmacy, i.e. prescribed medication (referred to as “Items”), then it makes commercial sense for operators to position as close to the GP Surgery as possible, to essentially capture the patient footfall.

Rent Reviews

 

Where there is a Lease in place to a co-located Pharmacy, there may be outstanding rent reviews which can be actioned.  The Lease will set out whether rent reviews can be pursued after they become due, the basis on which they are calculated, and the frequency.  The standard review methods are as follows:

  • Market Rent (upwards only / upwards or downwards etc.)
  • RPI – In line with Retail Prices Index (upwards only / upwards or downwards etc.)
  • RPI – In line with Retail Prices Index but with collar (minimum uplift) and cap (maximum uplift.)
  • Stepped Rent.
  • The higher of the Market Rent or RPI.

Aspects that can influence Co-located pharmacy rent

 

  • Size (100 sqm plus is optimal but not essential)
  • Nature of access, shared access with the GP Surgery is best, along with independent access.
  • Patient List Size – the larger the better!
  • Performance of the GP Surgery in terms of number of items prescribed per patient.
  • Performance of the Pharmacy Operator in terms of the number of items dispensed that come from the GP Surgery this is also known as the Capture Rate.
  • Whether there is any competition nearby i.e. other pharmacy operators.

What can BW Healthcare Surveyors do for you?

We can undertake a free initial assessment of the Pharmacy lease to determine.

  1. Whether the rent you charge is in line with the current market or could likely be increased.
  2. Whether you have any outstanding rent reviews that can be instigated.
  3. When the lease is up for renewal and when that can be actioned.

Following the free initial assessment, if we believe the practice are losing out on rental income, we can negotiate an increase with the pharmacy or their appointed representative on your behalf.

  • Survey, measure and inspect the pharmacy where appropriate.
  • Calculate our opinion of the rent based upon the facts collected from the survey, and the relevant comparable evidence for your area.
  • Initiate the rent review process with the pharmacy company.
  • Negotiate and agree an increase in rent with the pharmacy and their appointed representative.
  • Ensure all relevant rent review notices are drafted and signed to confirm the increase in rent.

 

Why choose BW Healthcare Surveyors?

 

BW Healthcare Surveyors team have considerable experience helping GP Practices with their pharmacy rent reviews. We pride ourselves on our no-nonsense approach and highly competitive fee structures. We will manage the whole process from start to finish and keep you up to date with our progress on a regular basis.

  • We are the Top ranked primary care surveying firm in the UK according to Practice Index.
  • We have 10 specialist primary care surveyors with over 100 years combined experience supporting GP practices with all their premises requirements.
  • Our specialist team have already provided help and support to over 1,000 GP practices.
  • We are SafeContractor accredited, and a Code of Practice approved supplier.
  • We have fantastic working relationships other agents, ICB’s and NHS Premises teams to ensure a speedy and hassle-free rent review process.

Should you have any questions or queries regarding any of the above or would like to discuss your circumstances with one of our expert advisors please don’t hesitate to get in touch on 0114 4420098 and we would be more than happy to help.

CLIENT TESTIMONIALS

Sue Pyatt

Excellent service throughout, constant updates and feedback from yourselves.

Sue Pyatt, Practice Manager

Francis Mulhern

They were extremely easy to deal with, informative, focussed and efficient.

Francis Mulhern, Bretton Medical Practice Peterborough

Adnan Mohammad

Efficient company that that has a competitive fee and get the job done.

Dr Adnan Mohammad, GP Partner, Newsome Surgery, Yorkshire

Jill Foster

BW Healthcare has that special personal touch.

Jill Foster, Practice Manager, Beacon Primary Care, Lancashire