When Should a Dentist Relocate their Practice?

Brandy Keck is a Brockerage Liaison at Carr Healthcare Realty. In this clip, Keck discusses the considerations that must be made before a dentist decides to relocate their practice. It might make sense, Keck says, if the price of relocation can be offset by increased productivity, or increase the potential sale value of the practice down the line. Landlords, Keck says, also sometimes offer dentists generous tenant-improvement allowances.

Interview Transcript (slightly modified for readability)

“The largest transaction in real estate per deals done each year are renewals. When a dentist is building out their office, it’s very expensive. For them to start that over and relocate can be very pricy. However, the economics of it can make sense.

There are landlords who are willing to give a very large T.I. (tenant improvement) allowance to move and get them into their space. Dentists are a high-quality tenant, so landlords are very eager to get them into their spaces. There’s also something to be said for, if a dentist is maxed out in their three-operatory practice right now, it may not be beneficial for them to stay in that current location. It may make more sense for them to relocate, add that fourth, fifth operatory. The production goes up per month in each one of those chairs and they can make it up on the back side of that. So, it can make sense to relocate in those scenarios.

RELATED: More Advice from Brandy Keck

· Is It Better for a Dentist to Buy or Lease Practice Space?

· Research Your Real Estate Market Before Negotiating on a Dental Practice

· You’re Ready to Buy Dental Practice Real Estate. Now What?

If they’re looking down the line and trying to figure out an exit strategy for the practice and they’re trying to decide, what’s the best thing for them for their nest egg, which is the practice when they sell it, what’s the better location? If you’re looking at it as a new dentist coming in to buy your practice five, 10, 15 years down the line, does your current location make sense, or would it have been better to have relocated five, 10, 15 years ago and gotten the location that would have been better for the practice.

Again, it would be a matter of weighing all the options, maybe sitting down with your entire team and figuring out relocating or staying in the current location.”

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