With his lease renewal deadline approaching, successful endodontist Dr. Roundy found himself at a strategic crossroads that many established practice owners face. After years of building a thriving practice in a premium retail location, he needed to determine whether renewal was truly his optimal path or if property ownership would better support his long-term wealth-building goals.
Like many established practitioners, Dr. Roundy was weighing several critical options:
- Should he simply renew his current lease?
- Was it time to purchase a medical office condo?
- Should he invest in land and construct his own building?
- Was this the right moment to build equity through real estate ownership?
Having previously partnered with Practice Real Estate Group (PRG) to secure his original location through their comprehensive demographic analysis and competition mapping, Dr. Roundy recognized that expert healthcare-specific real estate guidance would be essential for this next phase of his practice evolution.
While capable of browsing commercial listings himself, Dr. Roundy knew that if he was serious about finding all available options, he needed a team to help him chase down the possibilities. And he wanted experts on his team. His previous experience with PRG had shown that their location would be successful – and it was.
PRG immediately conducted a strategic assessment and advised that given the excellent quality of his current location, relocation would only make financial sense if it included property ownership. With this framework established, they began a methodical search focused primarily on medical office condos.
As the team explored available properties, a clear pattern emerged. The office condos on the market had an institutional, industrial feel that contrasted sharply with Dr. Roundy’s current bright, sophisticated space where patients felt comfortable and at ease.
Shifting the focus to land acquisition, PRG identified a promising tract in an area their dental demographic data indicated would support his practice. However, after a detailed financial analysis, they determined the parcel was insufficient for his needs, making the investment financially unsound.
This exhaustive exploration of alternatives gave Dr. Roundy the confidence that renewing his current lease was indeed his best strategic move. PRG then negotiated decisively on his behalf, securing several key concessions:
- Reducing the landlord’s standard ten-year renewal requirement to just three years, preserving Dr. Roundy’s flexibility for future opportunities
- Obtaining a substantial tenant improvement allowance despite the shorter-term
- Ensuring he could update his entire office with new flooring and modern cabinetry
The outcome positions Dr. Roundy for continued practice success while maintaining the ability to pursue ownership when the right opportunity emerges. His patients benefit from continuity of care in a familiar location, while he benefits from both enhanced facilities and strategic optionality for his future.
Is Your Practice at a Real Estate Crossroads?
Whether you’re approaching a lease renewal, considering property ownership, or exploring practice relocation, having healthcare-specific real estate expertise can be the difference between a good decision and an optimal one. Questions? Reach out to our team today.
