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Tips for Choosing the Perfect Dental Office Location

September 30, 2024
Tips for Choosing the Perfect Dental Office Location

Expert Insights from a Real Estate Professional

When opening or expanding a dental practice, one of the most critical decisions is choosing the right location. Should you lease an existing space or take the plunge into ground-up construction? At Curate Studios, we know that selecting the perfect space can have a lasting impact—from patient access to your financial bottom line. To help demystify selecting a space to lease, we spoke with Sonya Brown, a seasoned commercial real estate agent at Carr, a firm specializing in medical and healthcare real estate in Texas. We were honored to have Sonya share her invaluable insights into dental professionals' challenges and opportunities and tips on navigating these crucial real estate decisions.

Real Estate Representation: The Importance of Healthcare-Specific Agents 

"Representation is the number one thing I push," Sonya says immediately. "A dentist should always be represented by a healthcare-specific agent who knows the market." Without proper representation, practitioners may be vulnerable to predatory leasing practices. Sonya explained that landlords often exploit unrepresented doctors by charging higher rents.

Tips for Choosing the Perfect Dental Office Location: Expert Insights from a Real Estate Professional

"Even a small rent increase—just one or two dollars per square foot—can add up to hundreds of thousands over a 10-year lease. We see cases where this costs a dentist over $500,000."

Carr was founded with this exact issue in mind. "Our CEO, Colin Carr, used to work for landlords, and he saw firsthand how doctors would walk in unrepresented and end up overpaying. That’s why we focused on representing only the buyer or tenant—we never represent the landlord, so our loyalty is clear."

Sonya emphasizes the importance of working with a real estate agent specializing in healthcare. "You need someone who understands medical office space and can advise on the unique needs of a dental practice—like ensuring that water lines are properly placed in every room or that there’s enough space for multiple exam rooms and a reception area."

Dental Office Location and Demographics: Where Should You Set Up Shop?

Location is critical for any dental practice; according to Sonya, the decision should be data-driven. "We always recommend purchasing demographic studies to help narrow potential areas," she explains. "We do not get paid by the companies that provide the studies, but we think it’s essential for dentists to understand the local population, competition, and growth potential."

Dental Office Location and Demographics: Where Should You Set Up Shop?

In addition to understanding demographics, Sonya highlights the importance of scouting the competition. "We tour the area with our clients to assess the competition and ensure enough patient demand to support a new practice. You want to be in a space where you can succeed."

According to Sonya, an emerging trend in dental practice locations involves proximity to high-end stores. "Depending on whether a dentist accepts Medicaid or works primarily with PPO insurance, they might want to be near a more affluent area." She also notes that being close to other healthcare providers—like orthodontists or optometrists—can be beneficial, especially for pediatric dentists.

Dental Office Location Process: When Should You Start? 

Timing is everything in real estate. It’s never too early to begin the process if you're considering opening a practice. "For dental offices, we recommend starting at least a year in advance," Sonya advises. "If you wait until closer to your lease expiration, you lose leverage. Landlords know building out a space takes six months to a year, so your options become limited."

Dental Office Location Process: When Should You Start?

Even if you're renewing an existing lease rather than moving, starting early gives you more negotiating power. "We’re the only agents who help dentists with lease renewals, and it’s surprising how many practitioners end up needing a new space or major upgrades after 10 years. Even if they stay in the same location, we negotiate tenant improvement allowances (T.I.) to help them update their space."

Sonya has seen landlords offer substantial tenant improvement allowances as part of lease renewals, sometimes even covering significant expenses like new air conditioning units. "It’s all about negotiating with leverage. If a landlord knows they’ll lose a tenant, they’re often willing to spend more to keep them."

Tips for Choosing the Perfect Dental Office Location: Expert Insights from a Real Estate Professional

Final Words of Wisdom

Sonya’s final piece of advice for dentists considering a new space? "Be represented. It’s the single most important factor in getting a fair deal and securing a space that will serve your practice for years to come."

Whether you’re leasing or building, partnering with a healthcare-specific real estate agent who knows the market ensures you’re not leaving money on the table—or putting your practice at risk. Proper representation, planning, and strategic decision-making can help you find a space that meets your clinical and financial needs. 


If you would like to speak to our expert, see contact details below.

Sonya Brown | CARR, Inc. - Agent

Website

Phone: 817.896.4215

Email: [email protected]

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