Dr. Roundy had about 14 months left in his medical office space lease and he needed to give notice to his landlord if he wanted to renew, but he wondered what his other options were.
Do I want to stay or am I missing out?
Should I move to a medical office condo?
Should I buy land and build a building?
Is it time to invest in real estate?
Dr. Roundy knew how to search for real estate on common commercial real estate sites, but he knew if he was serious about finding all of the available options, he needed a team to help him really chase down the possibilities. And he wanted experts on his team. So he reached out to Practice Real Estate Group (PRG) who had conducted dental demographics and produced layers of competition reports to help him find his current location. Although it was not traditional medical office space, PRG’s reports had shown that the location would be successful – and it was.
With its track record of success and an established rapport, PRG joined Dr. Roundy in his search for his next step as an endodontist and practice owner.
Dr. Roundy was open to either renewing or relocating, but PRG advised him that because he was in such a great lease spot, a relocation only really made sense if he could own the real estate.
To begin the search, Practice Real Estate Group focused primarily on office condos. As the search unfolded, however, the office condo opportunities just didn’t feel right. The condos on the market all felt industrial, much different from the comfortable, bright, and sophisticated space Dr. R was currently leasing.
Then PRG switched their search to one for land. They identified a tract within where the dental demographics said Dr. Roundy would be successful, but after running the numbers, PRG determined the land was too small for his needs. The investment didn’t make sense.
These thorough searches showed Dr. Roundy that his best option was to stay in his current medical office space. PRG negotiated the landlord’s ten-year renewal standard down to three years so he could keep his options open moving forward. Even with the shorter renewal, PRG was able to negotiate a significant tenant improvement allowance. The money would allow Dr. Roundy to replace flooring throughout the office and get new cabinetry.
Practice Real Estate Group’s guidance and data ultimately landed its long-time client in a strategic position. His agent bought him time to stay in his current, successful space while keeping a door open to continue exploring a purchase.