NLMS, like many hospitals, owns a number of primary care physician practices. To take advantage of some possible economies of scale, NLHS is considering the consolidation of its outpatient practices and relocating them to a single building close to the hospital. Building The building under consideration is a 20,000-square-foot existing facility and will be more than adequate to accommodate the physician practices. At a rental cost of $20 per square foot, the total annual rent will be $400,000. (