What are the top 15 commercial real estate questions for dental professionals:

Dentists frequently ask a range of questions about commercial real estate, encompassing both leasing and purchasing, due to the specialized nature of their practice. Here are the top 15 questions, based on common concerns and crucial considerations for dental professionals:

dentist commercial real estate

Leasing-Related Questions:

1. What is the ideal lease term for a dental practice? (Dentists often need longer terms to recoup build-out costs and secure financing.)

2. What are the critical clauses to look for and negotiate in a dental office lease? (e.g., assignment clauses, renewal options, relocation clauses, recapture clauses, subordination clauses, non-disturbance agreements).

3. How are tenant improvement allowances (TIA) calculated and how can I maximize them? (Understanding if it's based on usable vs. leasable square footage, and negotiation strategies).

4. What are the common "traps" or pitfalls in dental office leases that I should avoid? (e.g., clauses that hinder practice sale, landlord's right to relocate, hidden costs).

5. When is the best time to approach the landlord when buying an existing dental practice that is currently leasing? (Typically after financing is arranged and purchase contract is negotiated).

6. What are my liabilities if I assign my lease to a new dentist when selling my practice? (Seeking release from liability).

7. How do I ensure the lease supports long-term practice growth and potential expansion? (Considering flexibility for future needs).

Purchasing-Related Questions:

8. Should I buy or lease my dental office space? What are the pros and cons of each? (Considering flexibility, equity building, upfront costs, and long-term financial goals).

9. What are the key factors to consider when evaluating a location for a dental practice? (Visibility, accessibility, parking, demographics, co-tenants, permits, price, and geographical barriers).

10. Do I need a commercial property inspection and an Environmental Site Assessment when buying a dental office building? (Understanding the due diligence process).

11. How does real estate ownership contribute to my retirement plan? (Considering equity building and potential for future income).

12. How much should rent and associated expenses be as a percentage of annual revenue for a dental practice? (Industry benchmarks for financial viability).

13. Is it advisable to separate my real estate investment from my dental practice by creating a separate LLC? (Protecting assets and liability).

14. What kind of financing options are available for purchasing a dental office building? (Traditional loans, SBA loans, private lenders).

15. What due diligence is required when buying a dental office, beyond financial records of the practice itself? (Legal aspects, zoning, code compliance, and property condition).