As your lease approaches its end, you might be weighing your options: renew your lease or purchase your own medical office space. But before making this decision, consider a more fundamental question: How healthy is your practice?
Many healthcare practitioners approach their lease renewal with a touch of real estate FOMO. Perhaps colleagues who invested in commercial property seem to be thriving, or former classmates who bought their practice space appear to have made a wise financial move.
But here’s the reality check: without seeing their financial statements, you can’t truly assess their success. More importantly, real estate investment doesn’t have to be tied to your practice location—and often, it’s better when it isn’t.
Your Location Success Isn’t Determined by Ownership
Many of our most successful clients operate in high-visibility retail locations that they lease rather than own. Their prime positioning—perhaps in a grocery-anchored shopping center or high-traffic retail corridor—is a significant driver of their success.
The challenge? These prime locations are rarely available for purchase. If you prioritize ownership over location quality, you might find yourself relocating to a purchasable property that lacks the visibility and convenience that currently drives your patient acquisition.
Your Patient Base Values Consistency and Convenience
When you relocate after years in one location, you’re not just changing your address—you’re asking your established patients to change their routines. The convenience factor that helped you retain these high-value existing patients (who are significantly more profitable than new patients) is suddenly compromised.
Before making your decision, weigh the value of your existing patient base against the potential benefits of property ownership.
The Smart Approach to Your Renewal Decision
As you approach your lease renewal, focus on these key questions:
- Is your practice thriving in its current location?
- Does your patient base primarily come from the surrounding area?
- Would the benefits of ownership outweigh potential disruption to your business?
Real estate investment is certainly a valuable wealth-building strategy for healthcare professionals—but it doesn’t necessarily have to involve your practice location. Many practitioners find greater success by renewing advantageous leases while investing in commercial real estate separately.
Ready to Make Your Next Real Estate Move?
Don’t navigate this critical decision alone. At Practice Real Estate Group, we specialize in helping healthcare practitioners make data-driven real estate decisions that align with their business goals. Whether you need expert lease renewal negotiation to secure better terms or guidance on strategic property investment opportunities, our healthcare-specific expertise ensures you’ll make the right choice for your practice’s future.
Contact our team today for a complimentary consultation to discuss your lease renewal options and explore how we can help optimize your real estate strategy.
