8 Real Estate Considerations for Dental Practices

So you’ve found a property in a location with great demographics…what’s next?

Locating a dental practice is not as simple as picking any available commercial real estate in an area with ‘great’ demographics.

When locating a practice, it’s crucial to consider the following 8 real estate factors:

1) Building Aesthetics

Is your property attractive and well-maintained? The more well-maintained your property is, the better. Patients often assume that if your property is well maintained, you’re also going to stay up to date with the services you’re providing as well.

2) Size

Is there enough space for 4 or 5 dental chairs?

Consider at least 1,600 to 2,000 square feet. If you exceed 2,000 square feet, you’re likely going to be paying for that space in rent (unless you’re sharing the space with another provider, or you’ve worked out a great deal with the landlord).

Keep in mind that going ‘too small’ will also limit the number of dental chairs you’ll be able to add down the road, which will likely also affect the profitability of your practice by 6 to 7 figures over a 10 to 15 year period.

Some offices can be quite productive in less than 1500 square feet, but they needed to compromise on non-essential rooms like staff rooms and consulting rooms. You need to ask yourself, is that vision right for you?

3) Parking

Not having an ample amount of easily accessible and preferably free parking can really impact the flow of the practice.

Remember that poor parking will affect how timely patients will present for their appointments.
Time is money, and a bad parking situation can not only be bothersome, but can also become a very costly problem over time.

4) Accessibility, Visibility and Traffic Flow

In many cases, great visibility can trump great demographics. A high-rated property in a B-rated market is usually better than a poorly rated property in an A-rated market.

How visible is your office from the roadside?

Will there be lots of signage?

Is there a lot of traffic flow and draw to the area?

Is there a good draw, for example, is there a popular grocery store, or coffee shop like Starbucks or Tim Hortons nearby?

Is it easy to enter the office, or will patients need to take the stairs or an elevator?

Will your office be wheelchair accessible? What are the law requirements in your province or state?

5) Co-tenants

Are the co-tenants good, clean neighbours? By ‘clean’ we mean, unlikely to draw pests or produce smells or other environmental pollutants, sounds, etc. that could affect your practice.

Will the co-tenants attract the types of patients you’re looking for? If you want to attract families, then great co-tenants would be daycares, groceries, children’s clothing stores, banks, etc.

6) Permits

Are dental offices even allowed at this particular location? Applying for a permit will mean more time is required to build up your practice.

7) Price

How much will you be paying per square foot, on an annual basis? Pricing can change drastically based on the part of the province or state. Negotiating price with a real estate expert is strongly recommended.

8) Geographical Terrain

You might find an area with great demographics, but are there any physical barriers, huge forests, natural parks, airports, or lakes nearby? These factors may not only limit the future development of the area, but also its accessibility.

Demographics and real estate are two different checks. We run the first one for you; your broker runs the second. Request the sample report below to see what the first check looks like.