You Won’t Believe How Much You Save With New Plasma Center Construction

How a free-standing new building is better for your bottom line than leasing in a

When planning a new plasma center, companies often lease an existing structure in a decaying strip shopping center.

This may seem smart, but we have found–after 40 years of building and operating collection centers–it is a very costly business decision.

1. Ignore economic life at your peril

Will that existing structure last as long as you plan to operate?

Quality of maintenance

Even if the roof has been replaced, was it done properly with high-quality materials? What life is left in the joists, wood and masonry that were exposed to roof leaks–possibly for years–before the roof was replaced?

You may think, “Repairs are covered in the lease,” but the lease representation of ‘landlord’s work on the premises’ may or may not come to fruition (see #3 below).

Cost of relocation

When the economic life of the building has ended, you will be faced with the expensive, time-consuming and production-zapping prospect of relocation.

Stough Group recently saw a large plasma company think it was getting a deal buying  existing centers for a huge amount of money. Unfortunately, they immediately found that every building needed to be overhauled or was unusable. In a short time, major component failures forced them out. Ultimately, for less money, they could have leased new Stough buildings, and gotten 40 years of life out of each center.

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2. Outstaying your lease can be costly

Will you be able to renew at favorable terms?

The length of time a plasma center operates in a favorable location is up to 40 years. Most strip center leases are 10-15 years. Will you be allowed to renew–or will you even want to–when the lease is up? How will the terms change, and how much hassle will it be to relocate if you choose to move?

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3. Undercapitalized landlords don’t make timely, quality repairs

You could be stuck trying to maintain production in a building no longer safe or even functional

You may sign a lease that includes proper maintenance and protection from failing roofs and problems with electric, plumbing, HVAC and inner/outer finishes. The reality is that strip centers are undercapitalized, and it is often impossible to get an undercapitalized landlord to make quality repairs in a timely way.

You could be stuck trying to maintain production in a building that is no longer safe or even functional, while your case languishes in court and you scramble to find new quarters.

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4. Surrounding businesses (or lack thereof) can tarnish your reputation

In an aging strip center, you may not have great neighbors, or worse, empty storefronts. If they are businesses with a negative image, such as liquor stores or massage parlors, their reputations will become yours. Anything they do in terms of use, reconstruction, alteration, signage, etc., will reflect on your business and can cost you donors.

Neighbors can change.

If your neighbors start to attract vandalism, drug deals, prostitution or violence, will your donors and employees enjoy being on the property? Will you be accused of contributing to an unsavory atmosphere and asked to leave? You are the prisoner of your surroundings in a strip mall. You may like your neighbors now, but that can change quickly in this era of massive retail failure.

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5. The cost of operating in an inflexible space can be high

When you must reconfigure, will you be able to do so cost-efficiently?

Your leased space was probably not originally designed for collecting plasma. Plasma center standard operational procedures (SOPs) require a certain configuration. With luck, you may be able to reconfigure the space to meet SOPs, but the process will probably be expensive.

You also need to look to the future.

When you must reconfigure the layout for regulatory or operational changes, will you be able to do so quickly and cost-efficiently?

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If you plan ahead and choose new construction, you avoid all these problems.

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To streamline delivery and control costs, we take a prototype approach when possible, engage local civil engineering consultants for each project, and establish a working relationship with the local governing authority.

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