Long-Term: The Right Way to Think About Dental Office Space
A dental practice is a long-term investment and the physical space it’s located in can be your biggest investment of all. Expansion, renovation and/or relocation can all require major capital and time, so you should have a plan for changes. When evaluating your space, you need to consider your long-term goal, so you don’t experience any financial surprises with your facility budget.
Long-Term is the Correct Way to Think
Table of Contents
When leasing a space or purchasing real estate, you should be thinking about the long term — meaning the next five, ten or even twenty years. Can you see your business selling or expanding? Will more people be working in your practice? Will you need to modify or upgrade the facility you’re in as your business grows or changes? Will your need for parking change or expand? Long-term thinking can help you make a financial plan that will consider these factors.
Will Your Business Need to Expand, Renovate, Transfer and/or Relocate?
Practices change over the years. Occupancy and conditions of buildings change, and so do rent costs. Landlords can make new decisions about how to use their premises. Competitors can appear nearby out of nowhere. Making a plan for your business’ possible expansion, renovation and/or relocation in advance will save you major headaches and financial pain later.
What Are the Terms of Your Lease, and Can They Be Renegotiated?
If your business experiences change to its revenue, can you renegotiate the terms of your lease? If you wanted to sell your practice, how would that work as far as your lease is concerned? If a new competitor to your business were to open a short distance away, could you get out of your lease if you wanted to or had to relocate? If the owner of the property wants to make unforeseen conversions to the property or to sell it, how are you covered for those possibilities? Under what terms are you able to renew the lease, if any? You should consider ail of these scenarios and take into account your business’ planned growth to build possible transition increment opportunities into a lease.
A dental office real estate professional can help you with all of these contingencies. Contact an expert today at Joseph Rossi & Associates, Chicagoland’s expert in the dental and medical real estate market, to find out about all your options.