

As with everything, there are pros and cons to both owning
and leasing
commercial real estate. When determining
whether leasing or owning is right for your practice, the decision may
ultimately come down to:
·
Availability
·
Wants
·
Needs
Many choose to own versus lease the commercial real estate
as it can be part of their retirement plan and is ultimately, a pretty sound
investment. However, it really comes
down to understanding where your practice life cycle is. For instance, if you’re just starting out and
you weren’t able to secure 100 percent of your financing, leasing may make more
sense. On the other hand, if you’ve
found your dream property and your finances are in place, this might be the
perfect time to take the step to becoming a property owner.
There are three main reasons why dental practice owners
decide to lease their real estate
over purchasing and they are:
1.
Flexibility - You can test drive a location with
a 5 - 7-year lease.
2.
Predictability - Fixed monthly expenses; no
surprises.
3.
Cost - Standard monthly
payment.
With every Yin there is a Yang. While the pros may seem pretty great for
leasing, there are also cons that you should take into account when weighing
your options.
1.
Losing control over long-term plan of practice.
2.
Growth restrictions.
3.
Dental build out is very costly.
4.
You can’t use a leased office as part of your
retirement strategy.
Some of the top reasons dental practice owners should
consider owning their commercial real
estate include:
1.
Control
2.
Continuity
3.
Opportunity
4.
Retirement
There are a number of instances when owning the commercial real
estate for your dental practice may not be very practical. Have a look at some of the cons to owning
commercial real estate:
1.
If you’re not able to secure 100 percent of the
financing for your dental practice, you may have a sizeable down payment requirement.
2.
If you need to sell your current property while
executing on a new purchase, it could result in a slower timeline.
3.
Purchasing
and construction both typically have longer timelines as opposed to
leasing.
4.
You take on the risks and responsibilities of
the property. Think slip and fall
accidents, expensive maintenance costs, etc.
Everyone has a different set of priorities and every
situation is different. When making the
decision consider what your short-term, mid-term and long-term goals are. These goals and objectives can help you make the
right decision for your dental practice.
Regardless of what stage of your practice’s life cycle
you’re in, Dental B-School is here
for you. To help you along your journey
of dental practice ownership we’ve put together a collection of free
resources for you to peruse.
Alternatively, you can schedule a consultation with us by sending a secure message.
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