Cutting $41M of annual rent across 260 clinical sites

Eleven months of negotiation, no site closed involuntarily.

$41M
Annual saving: 260
Leases reviewed: 19% → 13.1%
Occupancy cost: 0
Sites closed

The situation

Northgate operates outpatient clinics on 260 leases signed by nine different predecessor organisations. Occupancy cost had drifted to 19% of revenue against a 12% sector benchmark.

What we did

Every lease was scored on three axes: patient catchment, landlord concentration and realistic alternative use. Only 74 had genuine leverage, and those got the attention.

We negotiated as a portfolio with the six landlords who held 58% of the estate, trading term extensions for rate reductions rather than asking for concessions.

The outcome

$41M of annual rent removed, occupancy cost down to 13.1%, and no clinic closed against its will. Eleven sites were relocated within the same catchment at lower cost.

“They talked us out of the twenty negotiations we wanted most and into the ones that mattered. That was the value.”

Priya Raghunathan · COO, Northgate Health

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