Finding the Right Space for a First Practice
Dr. Wilson worked as an endodontist for a multilocation group practice, but he was ready to build something of his own. After years of working for someone else, he wanted the autonomy and opportunity that come with practice ownership. His consultant connected him with Max at Practice Real Estate Group.
Dr. Wilson identified his target market: a growing suburb south of Fort Worth with no existing endodontist. Working with Max, they determined he’d need a six-operatory office around 2,000-2,500 square feet to support the practice he envisioned. Max started the search.
A Tight Market With High Stakes
The market was tight from the start. The suburb was growing but still somewhat rural, with only a few thousand residents within a three-mile radius of the town center. Commercial inventory was limited to two main streets and a handful of viable properties.
The stakes were high. Dr. Wilson would be investing heavily in buildout – specialized endodontic equipment, plumbing for multiple operatories, and the clinical infrastructure a modern practice requires. That kind of investment doesn’t move easily. He needed to get the location right the first time.
Two Properties, Two Very Different Landlords
Max focused the search on professional medical spaces rather than retail. The reasoning was straightforward: Dr. Wilson’s practice would run on referrals from general dentists, not walk-in traffic. Retail strip centers charge premium rents for visibility, valuable for a general dentist competing with nearby practices, but not for the only endodontist in town. A professional building alongside other medical users, dermatologists, family care, and dental specialists creates the right environment without paying for exposure that the practice wouldn’t leverage.
After touring the options, two properties stood out. Both were single-story medical buildings around 2,250 square feet with similar rents and tenant improvement allowances.
The properties were comparable. The landlords weren’t.
One landlord was a prosthodontist who owned a small building adjacent to his own practice. Professional, reasonable, represented by counsel, a fellow specialist who understood the business. The proximity also meant a built-in referral relationship: an endodontist and prosthodontist practicing next door to each other create natural cross-referral opportunities that benefit both.
The other landlord was a general dentist self-managing his property. He raised red flags immediately, calling Dr. Wilson directly to cut Max out and avoid paying commission.
Max submitted letters of intent on both properties and recommended the prosthodontist’s building. The economics were similar, the landlord would be easier to work with, and the referral upside added long-term value.
Dr. Wilson looked at the numbers. Because the deal with the self-managing general dentist penciled out slightly better, he signed that letter of intent.
Days From Signing
Max worked through lease terms with the landlord, buildout timeline, tenant improvement details, and standard provisions. The landlord pushed back on some basics, resisting investments that most property owners make to secure quality tenants. Within a few weeks, they reached final edits, just two or three attorney comments from a signed lease.
Then the landlord walked away. No warning, no explanation. He simply terminated the deal.
It was a significant setback. They’d been days away from signing, and now they were back to square one in a market with limited options.
Max recommended returning to the prosthodontist’s space. Dr. Wilson had a different idea. The failed deal had shifted his thinking away from finding the right location and toward the security of ownership. Why keep leasing when he could build equity instead?
The idea of owning real estate is attractive to providers going out on their own, and Max wasn’t surprised to hear it come up. But focusing on ownership can become a distraction, especially for first-time practice owners. Max explained it plainly: building a medical practice and managing real estate are two separate businesses. Trying to do both at once stretches focus and capital thin. Build the practice first. Once it’s generating steady cash flow, ownership becomes an option rather than a risk.
It made sense, but Dr. Wilson still wanted to see what was out there for purchase.
Chasing Ownership
Max identified a promising purchase opportunity nearby newer construction, single-story medical space. Before incurring legal costs, they requested written confirmation that an endodontist could operate in the development.
The answer came back no. A family dentistry group in the development’s first phase had negotiated restrictions blocking all dental specialties from future phases. The property owner couldn’t override it. The purchase was off the table.
Max called Dr. Wilson, who asked about other possibilities, maybe something outside the immediate area, a different building type. Max walked through it: they’d already looked at everything. The lease that collapsed, the purchase was blocked by restrictions. Expanding the search meant leaving the market they’d identified, the one with no competing endodontist.
Full Circle
The prosthodontist’s space was still available. Professional building, reasonable landlord, and a referral relationship built in. Max had recommended it from the beginning.
Dr. Wilson tested every path to deal with better numbers, the purchase option, and expanding the search beyond the target market. Each one confirmed what Max had seen from the start.
After walking Dr. Wilson through everything, Max was able to level with him that this was ultimately the best option.
The Right Location
Coming back to the space months after the initial negotiations meant some terms had changed. The landlord was no longer including HVAC installation and window modifications, improvements worth an estimated $25,000 to $35,000.
But the location was right. The office sits in a two-tenant building next to the prosthodontist, a fellow specialist who became a natural referral partner. Dr. Wilson is the only endodontist in the growing suburb with no competition, positioned in a professional medical environment with strong visibility, accessible parking, and rent far lower than other retail alternatives.
“Thank you for your reassurance and dedication,” he told Max. “Could not have done it without you.”