New York physicians sublet and share offices as rents climb

Physicians in New York are increasingly cobbling together part-time and sublet arrangements for exam rooms and suites as office rents rise, according to reporting that highlights examples such as Dr. Jaishree Capoor, who began subletting a weekend consultation room on Fifth Avenue for $500 a month.

The trend reflects rising costs: JLL said Manhattan outpatient asking rents averaged $58 per square foot and forecast higher rents and declining availability this year. JLL's health care lead, Matt Coursen, said fitting spaces for medical use typically costs about $500 to $600 per square foot; a 2,211-square-foot average outpatient office could end up costing over $128,000 a month.

Analysts and advocates note consolidation in the field — a 2024 Physicians Advocacy Institute report found nearly 80 percent of doctors work for hospitals or corporate entities, and corporate ownership of physician practices rose to 30 percent in January 2024, up from about 15 percent in January 2019.

Doctors described a range of responses: Dr. Maria Sokolina signed a 10-year Manhattan lease, spent about $500,000 renovating and shares her space with two other dentists to help cover costs; Dr. Zarui Chopuryan pays $1,500 a month for an evening room; Dr. Masoud Saman has advertised a spare exam room.

Key Topics

Business, Independent Physicians, Manhattan, Jll, Physicians Advocacy Institute, Office Rents