4 Things You Need to Know About Your Dental Practice Real Estate (and how it can help you get more New Patients)

We are excited to have our friends at Crown Tenant Advisors share their unique dental and medical real estate knowledge in a Q&A format. Their insights can help you understand how to leverage your practice’s location to attract more new patients and manage your real estate investments wisely. Enjoy!

Q: We know that a practice’s location can positively or negatively affect its ability to attract new patients. What criteria do you look for when helping a medical or dental office find a great location?

A: The first step is to understand the type of practice the provider is opening. For example, a retail location might be ideal if convenience and visibility are crucial, such as for an urgent care practice. On the other hand, medical office buildings are excellent for providers seeking a full-service lease option and proximity to other medical offices for potential referrals. We use two primary data sets to narrow down a location:

  1. Demographics Analysis: We examine an area’s demographics to ensure the practice can thrive there. For instance, a growing number of families and children in an area is perfect for a pediatric practice.
  2. Competition and Referral Source Mapping: We identify the competition and potential referral sources in a prospective area and map them out. This visual aid helps the provider make an informed decision by highlighting areas with the best opportunities and fewer competitors.

Q: We have had several clients who engaged your company to renegotiate their leases and free up more money for their marketing budget. When is a good time for a practice leasing its space to contact you to discuss a possible renegotiation?

A: You should start discussions on restructuring a lease 12-18 months before its expiration. Hiring a commercial real estate broker specializing in healthcare is crucial to leverage market conditions and generate cost savings. Time is a significant factor in negotiations, so starting early allows us to fully understand the practice’s needs and determine the best course of action. At Crown Tenant Advisors, we offer a complimentary lease review to identify critical points for lease restructuring.

Q: What are some of the biggest mistakes doctors make when searching for real estate?

A: We all make mistakes, but two significant ones can be costly:

  1. Not Hiring a Real Estate Broker: Some providers believe hiring a broker will cost them more money, so they attempt to negotiate directly with the landlord. This is a myth. A broker must secure the best possible terms by leveraging their market knowledge. Landlords factor commissions into lease rates and purchase prices, so using a broker doesn’t increase your costs—instead, it helps ensure you get the best deal.
  2. Contacting Listing Brokers Directly: When providers call listing brokers off signs, they may unknowingly divulge critical information that can harm their negotiating position. To protect sensitive information, it’s best to let your broker handle these conversations.

Q: Several clients have used your company to find already built-out spaces (second-generation spaces) perfect for opening a second or third location. How should doctors go about looking for one of these locations?

A: Previously built-out spaces can save capital expenditures, making them an attractive option. However, even these spaces may require updates to meet modern standards. A qualified commercial real estate broker specializing in healthcare can help identify these locations due to their specific market knowledge. At Crown Tenant Advisors, we maintain a database of second-generation spaces in prime locations, ensuring we can find the best options for our clients.

Q: If any of our readers have questions, what is the best way to contact Crown Tenant Advisors?

A: We are pleased to offer a complimentary lease review to any of your readers to identify potential cost savings or avoidance strategies. For further details, contact Amanda Riepe at Crown Tenant Advisors by phone at 770-649-8036 or amanda@crowntenantadvisors.com.

Leveraging Real Estate for Practice Growth

Understanding the strategic importance of your practice’s location can significantly impact your ability to attract new patients and manage costs effectively. Here are some key takeaways to consider:

  1. Location Matters: The right location can enhance your practice’s visibility and convenience, making it easier for new patients to find you. Consider factors such as foot traffic, accessibility, and proximity to other medical facilities when choosing a location.
  2. Market Analysis: Use demographic data and competitive analysis to identify areas with growth potential and fewer competitors. This informed approach helps ensure your practice is positioned for success.
  3. Professional Guidance: Hiring a commercial real estate broker with healthcare expertise can save you time and money. They can navigate complex negotiations, secure favorable lease terms, and identify ideal locations.
  4. Cost Management: Regularly review your lease terms and explore opportunities for renegotiation to free up funds for marketing and other investments. Early planning and professional advice can lead to significant cost savings.

By focusing on these aspects, you can create a strong foundation for attracting new patients and ensuring the long-term success of your practice. Whether you are opening a new practice, expanding to a second location, or renegotiating your lease, making informed real estate decisions is crucial.