When it comes to selling a dental practice, real estate decisions—whether you lease or own—can significantly impact your transition timeline, buyer interest, and overall sale value. In our recent webinar, Real Estate: Lease Actions & Ownership Options, Dave Miller guided practice owners through the key real estate considerations that should be addressed well before a transition.
Why Real Estate Matters in a Dental Practice Sale
- Review Your Lease Timeline: Know when your lease ends and when notice must be given. Initiate conversations with your landlord 12–18 months before renewal to maximize your leverage.
- Hire Specialized Help: Partner with a healthcare-specific real estate company to represent you. They understand market rates and can negotiate terms that improve both your operational flexibility and your future sale.
- Evaluate Lease Assignability: Assignability clauses heavily favor the landlord. Consider renegotiating these terms now to avoid obstacles during the sale process.
- Think Before Signing Long-Term Leases Near Retirement: If you’re within a few years of transitioning, speak with a practice broker before committing to a new long-term lease. Understanding the most likely transition for your office can dictate how long of a lease you want to sign.
- Decide Whether to Sell the Real Estate: If you own your building, determine whether you want to retain it as a post-sale investment or sell it with the practice. Each path affects buyer interest and deal structure.
- Structure Leases to Attract Buyers: Lease terms such as a 5-year base term with multiple 5-year renewal options are ideal, especially for DSOs and institutional buyers.
- Get a Professional Valuation: If you’re selling the real estate, secure a broker’s opinion of value or a commercial appraisal to establish a solid asking price and support financing.
Additional Resources
All of our webinars, including this one, are available to watch free, alongside articles, podcasts, and tools to support your transition journey. If you’re considering a move, contact us to connect with professionals in our network—from tenant-only real estate advisors to appraisers and dental-specific attorneys.
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