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Navigating Your Dental Practice Journey: Lease or Build?

September 19, 2024
Navigating Your Dental Practice Journey: Lease or Build?

Unveiling the Key Considerations for Aspiring Practice Owners

As a dentist on the verge of opening a new practice, one of the biggest decisions you’ll face is  whether to lease an existing property or embark on the journey of building your practice from the ground up. Curate Studios understands that both options have their own unique set of challenges and rewards, and understanding the details will help guide your decision. 

From the standpoint of a professional interior dental design studio, we have successfully partnered with real estate professionals, architects, and contractors who specializes in dental practice properties; so let us walk you through some general, but critical, beginning considerations of each approach so you can make the best choice for your practice’s future. 

Practical Tips for Leasing a Dental Office Successfully 

For many dentists, leasing an existing property may seem like the quicker and more cost-effective  route. After all, the building is already there, and with some renovations and adjustments, it could  become your ideal practice location. But even though leasing is often simpler than new construction, it still requires careful consideration to ensure you don’t face unpleasant surprises down the road. 

Practical Tips for Leasing a Dental Office Successfully 

First, always verify whether the property’s zoning allows for dental use. It’s easy to assume that, because there is another medical office nearby, your dental office would be permitted. Unfortunately, zoning laws are not always that straightforward. Consulting with a qualified architect or the city’s planning department can confirm whether your practice will meet local requirements. But starting with a commercial real estate professional that specializes in medical property locations is an invaluable asset to help you streamline your location search.

Another factor for existing structures is the potential for a "change of use." If the building was previously a retail store or a non-medical office, transforming it into a dental practice could trigger a series of required updates to comply with modern building codes. For example, a change of use might require installing sprinklers or upgrading HVAC systems to meet healthcare standards. While this might seem daunting, it doesn’t necessarily mean you should pass on the property—just make sure you’re aware of the potential costs. In some instances, the property owner may consider subsidizing the costs for all or part of these updates since leasing to a dental practitioner typically has a minimal risk of defaulting on a lease.

Some things that are not always given first consideration are location and accessibility. Think about how easy it will be for patients to find and access your practice. Is the building visible from the street? Is the front entrance front and center, or does it require patients to navigate a maze to get inside? You’ll also want to consider how your staff can move efficiently through the space without disrupting the flow of patient care. These details might seem small, but they can significantly impact your practice's success. Architecture and interior design are cornerstones to answering these needs when beginning. Commissioning a test fit (also known as a space plan) from a dental practice design expert like Curate Studios will help you determine the feasibility of a potential site for a dental office.

Infrastructure is another crucial piece of the puzzle. While the building may already have utilities in place, you’ll need to confirm they meet your needs. Ensure that the existing electrical, plumbing, and internet connections are sufficient to support a dental practice, which often demands higher capacities than other types of businesses. Enlisting a contractor or building inspector early in the process can help avoid future headaches.

Of course, parking is a critical consideration, particularly in urban areas where space may be limited. The availability and convenience of parking for both patients and staff can make or break a location. Before signing a lease, check whether there’s enough parking or nearby options to accommodate the needs of your practice. Again, this is where the city planning department can assist. But also lean on your real estate professional as they often can help provide resources to get answers to the critical questions.

Once you have vetted these major points, obtaining a title report (from the county or local jurisdiction) and arranging a building inspection can help you identify any hidden issues, such as easements or structural deficiencies, which could impact your ability to operate in the space. These reports are especially important if you are unfamiliar with the building's history. 

A Step-by-Step Guide to Building a Dental Practice from Scratch

Building from ground zero offers the ultimate opportunity for those who crave control over every aspect of their practice environment. You’re not limited by someone else’s design decisions or the quirks of an existing building, but that freedom comes with its own complexities. 

The first step in developing a new site is determining whether the land is suitable for dental practice. Local zoning laws will dictate whether you can build a medical facility in that location, and understanding the difference between land-use codes and building codes is crucial. These codes often classify dental offices differently—land-use regulations may categorize them as medical, while building codes might group them with other business types. Make sure both aspects align to avoid any costly surprises down the line. 

Access to the site is another key factor. If you're building on undeveloped land, you will need to consider how patients and staff will reach your office. Are roads already in place, or will you need to create new driveways or parking lots? The overall flow of the site should make the experience of arriving at and entering your office seamless and welcoming. 

Utility infrastructure also plays an important role in determining whether a site is viable for development. You will need to verify if water, electricity, gas, and internet connections are readily available. If not, bringing these services to the site can be an expensive process, especially in more rural areas. And even if utilities are present, you’ll need to confirm whether they can meet the demands of a dental office, which often requires more robust systems than other types of businesses. 

Beyond the basics, conducting environmental studies is essential before breaking ground. These surveys can reveal potential issues with the land, such as poor soil conditions or contamination, which could add significant costs to your project.  

One of the biggest benefits of building your own space is the freedom to design your practice exactly as you envision it. Working with Curate Studios for dental office interior design and qualified architects will help to create a floor plan that promotes efficient patient flow, comfortable workspaces for your staff, and an inviting atmosphere for patients.

Building from scratch often requires a significant upfront investment, and you will need to budget for not just construction but also site preparation, permits, and unexpected challenges that may arise during the process. However, in partnering with industry professions from the beginning you are more likely to have a successful outcome at a lower overall cost and on a shorter timeline than cutting corners by eliminating expert knowledge.  

Making the Right Choice: How to Decide Between Leasing and Building

Deciding whether to lease an existing property or build a practice from the ground up is a personal decision that depends on several factors: your budget, your timeline, and your vision for your practice. 

Leasing can offer a quicker, more cost-effective route, but it requires careful consideration of the building’s suitability for a dental practice and any potential upgrades that might be needed. On the other hand, building from scratch gives you full control but comes with a more complex and lengthy process. 

Whatever you choose, working with experienced professionals—including a real estate agent, professional interior dental design studio (like Curate Studios), architect, and contractor—can help you navigate the nuances of dental office development and ensure you set your practice up for success.

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