If you’re a dentist who leases your office space, you may renew your lease multiple times throughout the lifetime of your career. Far too many dentists fail to negotiate their renewals and end up with less-than-favorable terms. You should develop a strong lease renewal strategy to ensure your lease serves you and your practice well. Here are some lease renewal strategies for dentists:
While both renewing and relocating have benefits, there are many reasons why you may want to remain in your current space, such as:
To negotiate a successful lease renewal, you should develop a plan ahead of time. Here are a few strategies that your plan should entail:
Your current lease will outline a timeline for your renewal. Our dental real estate team recommends you begin renewal discussions with your landlord 12 to 18 months before your current lease ends. You lose significant negotiating power if you wait too long and rush the renewal process.
Your landlord will be much more likely to renew your lease and provide favorable terms if you are a tenant who pays your rent on time and treats the property with respect. By following step #1, you will also demonstrate consideration to your landlord by giving them lots of notice of your intentions.
To further maintain your relationship with your landlord, you should hire a commercial real estate broker who specializes in dental real estate. Your broker will act as the mediator and request concessions, such as lower rent rates or more generous tenant improvement allowances, on your behalf. Brokers have knowledge and experience to research the market, analyze lease terms and draft lease documents, saving you valuable time.
Going into your renewal, you should have a clear understanding of current dental lease rates in your area. Research online and talk to nearby dentists to get an idea. As you do so, you may also find spaces that could be a good fit for your practice. If you are willing to relocate and have options available, you create leverage during the negotiation process. Your broker can help with this step.
As a dentist, you have many responsibilities overseeing your staff, clinical care, finances and real estate. When it comes time to renew your lease, don’t go it alone; contact our team of dental real estate experts to get started.