Dr. Cathey and his wife had achieved what many practice owners aspire to – a thriving dental practice with a growing patient base. Opening right at the start of the COVID-19 pandemic hadn't deterred their success. Within six months, their business systems were no longer just ideas on paper – they were driving real growth. Mrs. Cathey's systematic approach to dental office operations was streamlining the patient experience, while Dr. Cathey's investment in new technology had become such a unique offering that they were attracting patients from other cities and even across state lines.
But as many established practice owners discover, success brings its own challenges.
The Growth Ceiling Every Successful Practice Eventually Faces
Despite their impressive trajectory, the Catheys began experiencing the limitations of their space. They started noticing problems with their dental office space and became aware of issues on the property.
This scenario is familiar to many successful healthcare providers – the practice outgrows its original location. As the Catheys continued refining their business approach, they realized a critical truth: to serve the patients on their long waiting list, they needed a bigger office. The vision was clear – a larger dental office space would allow them to hire associate dentists and, therefore, see more patients.
Strategic Expansion: Maintaining Momentum While Building for the Future
The Catheys faced a strategic question that many established practice owners encounter: How to expand without disrupting current success? They wondered how they could keep their current dental office space, which so many patients found convenient, while at the same time building something new where they could be their landlords and see more patients.
This balance between maintaining current operations and investing in future growth represents a critical decision point for successful practices. The Catheys approached this challenge methodically, consulting with their financial planners at Cain Watters to discuss options. The Cain Watters advisors recommended buying land and building their dream practice.
Beyond Local Knowledge: Finding a Real Estate Partner Who Understands Healthcare
While local commercial real estate brokers offered general market knowledge, the Catheys needed specialized expertise in healthcare real estate. Their Cain Watters financial planner introduced them to a healthcare real estate expert at Practice Real Estate Group (PRG), whose healthcare-specific approach matched their needs.
For established practice owners considering expansion, the right real estate partner must bring more than just property listings – they need data-driven validation to minimize risk and maximize opportunity. PRG's process involves researching an area through and through using a variety of sources and approaches, from layers of distinct demographic data to hand-checked competition reports.
Validating Location Decisions with Data, Not Just Intuition
Dr. Cathey had a specific intersection in mind for his new location – but intuition alone isn't enough when making significant expansion investments. His PRG broker went to work researching that intersection and came back with ratios, income data, and other demographics that would help Dr. Cathey decide whether the intersection could actually support a new dentist office or if it just seemed like a good idea.
This validation process is crucial for established practitioners whose financial stakes are higher with each expansion. When demographic data confirmed Dr. Cathey's instinct about the location, it provided the confidence to proceed with property acquisition.
Overcoming Setbacks in Competitive Markets
The path to expansion isn't always linear. Despite making an offer significantly over asking on their first property target, the Catheys lost to a cash buyer. Rather than viewing this as a setback, they saw it as confirmation that they were searching in a desirable, up-and-coming area.
For established practice owners, persistence often determines success in competitive real estate markets. PRG found another tract of land in the same search area and Dr. Cathey's offer was accepted – securing exactly where he wanted to be, for a price that worked for both the practice and the bank.
Adapting the Vision: When Initial Plans Need Refinement
Every experienced practice owner knows that flexibility is essential in business growth. After receiving architectural plans, Dr. Cathey and his wife realized they needed just a little more space to make the new build worth it.
This realization led to a creative solution. Through Mrs. Cathey's research, they discovered the seller of their new property owned a piece of adjacent land that would provide plenty of room for them to develop and build their dream dental office space.
Since this additional parcel was not officially on the market, their PRG broker researched comparable properties and recommended a price that the seller accepted. When they encountered zoning challenges (the land was zoned residential), PRG worked with Mrs. Cathey on the rezoning application process.
Market Validation and Long-Term Vision
Strategic location decisions often receive external validation. In the Catheys' case, they recently learned that a national grocery store had purchased the land across the street – a development likely to increase future property value and patient visibility.
With support from their financial planners at Cain Watters, the expertise of their PRG healthcare real estate broker, and their entrepreneurial vision, the Catheys successfully secured ideal property for their practice expansion – positioning their business for the next phase of growth.
For established practice owners facing similar growth constraints, the Catheys' journey demonstrates the importance of specialized expertise, data-driven decision-making, and strategic persistence in achieving expansion goals.
Ready to Expand Your Practice Beyond Current Limitations?
Is your successful practice bumping up against the constraints of your current location? The Practice Real Estate Group team specializes in helping established healthcare providers find strategic expansion opportunities backed by comprehensive market data. Contact our team today to discuss your practice expansion needs and discover how our data-driven approach can validate your next location decision.
