Editor’s note: This article was originally published on Practice Real Estate Group associate agent Shivani Kamboj‘s LinkedIn feed.
As a healthcare real estate specialist, I recently spoke with a dentist who decided to pause her practice location search because of concerns about high interest rates. While financial considerations are certainly important, this decision highlights a critical misunderstanding about practice ownership priorities that I’ve seen affect many first-time practice owners.
The Location Decision You Can’t Undo
While interest rates on dental practice loans fluctuate and can be refinanced later, the location you choose for your practice is a commitment that typically lasts at least 10-15 years. This decision—which cannot be easily changed—often receives less attention than the temporary concern of current interest rates.
In competitive markets like Texas, ideal practice locations aren’t waiting for you to find them. Many development projects are pre-leased before construction even begins, and prime locations are claimed quickly by forward-thinking practitioners.
A Cautionary Tale: Opportunity Lost
Consider the dentist I mentioned earlier. She dreamed of establishing a practice in her community but decided to wait because “dental practice financing is just too expensive right now.” Shortly after making this decision, her ideal location—a retail space in a local shopping center with perfect visibility and demographics—became available.
Before the year ended, that space housed a thriving practice owned by someone else. Her path to practice ownership—already challenging—became significantly more difficult, with fewer viable options in her target community.
The lesson? You can refinance a loan when rates improve, but you can’t go back in time to secure a missed location opportunity.
Taking Control of Your Practice Future
Instead of passively waiting for the perfect timing, successful practice owners partner with healthcare real estate experts who:
- Scout continuously – Working with a specialized agent means having someone who’s constantly monitoring the market for opportunities that match your criteria
- Access off-market properties – Many prime locations never appear on public listings or internet searches
- Move quickly when opportunities arise – In competitive markets, being prepared to act decisively often makes the difference
Two Essential Steps Toward Practice Ownership
If you’re concerned about current economic conditions but still want to move forward with your practice ownership goals, focus on these action items:
1. Clarify Your Vision
First-time practice owners often need more confidence in their vision before making major commitments. At Practice Real Estate Group, we begin by asking powerful questions:
- Who do you want to serve?
- What services will make your practice both fulfilling and financially viable?
- How will your practice contribute to your life goals?
Answering these questions creates clarity that makes interest rates less intimidating because you can see the clear path from location to success.
2. Create a Concrete Path Forward
There’s no universal handbook for opening a practice, but with a step-by-step approach, the journey becomes manageable:
- Seek specialized expertise: Partner with a real estate expert who focuses exclusively on healthcare properties and understands the unique needs of your specialty
- Secure financing pre-qualification: Contact your bank or ask your real estate agent for a referral to determine what you qualify for, strengthening your position when opportunities arise
The Bottom Line
While interest rates will certainly impact your dental practice financing, they should not overshadow the critical importance of securing the right location. Remember:
- Interest rates can be refinanced when market conditions improve
- Prime practice locations, once taken, are gone for years or even decades
- The foundation of practice success often lies in demographic fit and visibility—factors determined entirely by location
The right time to begin your location search is now. The perfect space won’t wait for ideal economic conditions, and neither should your vision for practice ownership.
