There are many reasons why you may want to move your dental practice to a new location, but if you want to be sure you are moving to the right location at the right price, consider looking to your business advisory team for guidance.
Want a better deal on a great office location? Call in the experts.
Your financial advisor is one of your best resources when it comes to painting a clear picture of your practice’s overall financial wellness. Their expertise will help you arrive at an accurate cash flow projection, make sense of any tax implications that are associated with the move and will help you determine if the space you are eyeing is financially realistic. But your financial advisor isn’t the only professional who should have a seat at the table during your relocation discussions. For even better results, consider working with somebody who makes it their job to know the various nuances of your local real estate market.
A common mistake many dental professionals make when they decide to relocate to a new office is that they can do it by themselves. And while it’s quite possible to serve your patients full time, manage your practice and facilitate property negotiations, you may be cheating yourself out of the best deal. Rather than spend more on your relocation than necessary or letting your other daily responsibilities slip, a real estate broker will not only manage the legwork associated with choosing your office’s future, they will make sure you get exactly what you are paying for and then some.
I recently spoke with Justin Fodor of Carr Healthcare Realty, a real estate brokerage firm that works exclusively with professionals in the healthcare industry, to find out about the benefits a dental professional might be missing out on when they choose not to work with an expert real estate broker.
Best Deal For The Dollar
Your real estate broker understands the art of negotiation and will work to secure terms that are favorable to you and your practice, regardless of whether you will be buying or leasing the property. For example, while you may be concerned about “ruffling feathers” where pricing is concerned, your real estate broker will be ready to negotiate. They have been through the song-and-dance many times, and they know that the “sticker price” is only the starting price.
Justin said sometimes the healthcare professionals he works with are unsure about bringing in a third party to negotiate. This, he said, should never be a concern.
“Landlords work with brokers all the time,” explained Justin. “In fact, they hire their own brokers. They expect you to bring one to the table as well.”
Your Ideal Location
Oftentimes, if a real estate brokerage firm doesn’t specialize in demographics itself, they will work with professionals who do. This information helps you identify the best office location for your unique needs. Whether you want to find out how many general dentists are in a certain area or whether an area has access to a specialty practice, utilizing demographic information helps optimize your office’s geography.
“We’ve worked with a lot of practices that are coming from larger office buildings. They aren’t really sure what type of space they should be looking for,” explained Justin. “We can help them decide the type of environment that’s right for them by taking into consideration foot traffic, visibility, population, and other demographics.”
A Head Start
“We work with dental professionals to maximize their deal as much as possible,” said Justin. “It takes time to move into an office, remodel and then get patients back through your doors.”
A broker, especially if they specialize in serving healthcare clients, can help you negotiate the time you need to stabilize your practice’s cash flow. Justin said it’s not uncommon for him to secure a 5-month build-out period and 3-4 months of rent-free office space. By that time, everything should be up and running again.
Work With A Team That Knows Your Business
If a new office location is in your practice’s future, email the Bright Dental CPAs at Rea & Associates. We can help you identify your options from a financial perspective and will work with your real estate broker to make sure you are able to secure the best deal for your dental practice.
By Ryan Dumermuth, CPA, CFP (Mentor office)
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