From Corporate Vet to Practice Owner
Dr. H spent years working for corporate veterinary groups in the Austin area, rising to chief veterinarian at one location. But after experiencing repeated delays with a planned position, including working shifts out of state while waiting for a local opening, she was ready to take control of her career.
She came to PRG through a lender referral, having already attended industry conventions and researched what starting a practice would require. Dr. H was ready to open her own practice.
Finding Space in a Growing Market
Dr. H knew exactly what she wanted: 3,500 square feet. Space for multiple exam rooms, two surgical suites, and room to grow.
The size created immediate problems. In Austin’s market, a 3,500 SF space pushed her rent load above average start-ups.
PRG ran a comprehensive market analysis covering the northern suburbs from Leander to Pflugerville. Dr. H’s agent, Rusty Hutson, and the PRG demographics team analyzed the data, which pointed to a fast-growing corridor in the Round Rock area, where new residential developments were springing up rapidly.
The competition ratios told the story. While the industry standard is around 2,000 people per veterinarian, this corridor showed ratios of 8,655:1 and 5,300:1. The residential developments were increasing rapidly, but commercial real estate had not yet caught up.
“This is a really good area, and it was close to her house,” Rusty explained. “But there just wasn’t much available. This was really the option.”
Two Properties, One Clear Winner
Only two properties in the entire target area made sense.
The first was a second-generation space in Pflugerville that had been used as an urgent care concept. The space was already built out for medical use, which was appealing. But the demographic analysis showed it wasn’t positioned as well as the alternative.
The second was an end-cap space in a new development. That space was still under construction, and exactly 3,500 square feet. End-cap positioning meant visibility from multiple directions. And traffic counts on the main road exceeded 19,000 vehicles per day, something Dr. H knew mattered from talking to successful practice owners in her network.
After touring both, she chose the end-cap.
Working Within the Landlord’s Constraints
The space was perfect for Dr. H’s needs. The challenge was structuring a deal that worked.
The landlord was a merchant builder – someone who builds properties, leases them to tenants, then sells the entire building to investors. To get the best sale price, they need a strong net operating income (the rent coming in minus operating expenses). That number directly affects what investors will pay, which means base rent wasn’t open for negotiation.
The space was already priced below other suites in the development. That wasn’t changing.
Rusty shifted focus to terms that don’t show up in net operating income calculations: free rent periods and tenant improvement allowances. These help tenants during the critical startup phase without affecting what the landlord can sell the property for.
“We had better terms on two of the three categories,” Rusty said. “So I pushed on that last one and got more free rent and more TI.”
Keeping Communication Clear
The landlord’s business model meant base rent wasn’t negotiable. Free rent and tenant improvement allowances were. Rusty reached out to another tenant in the development and asked what terms they’d negotiated. That gave him a baseline for what was possible.
“We kept communication lighthearted when we could, but always transparent about the challenges,” Rusty recalled.
Dr. H appreciated the approach. As Rusty put it: “She trusted the process, but she understood that everyone had their own motivations.”
Signed in 18 Weeks
Rusty secured strong terms for Dr. H’s startup. She got the 3,500 square feet she needed, and Rusty negotiated the base rent significantly lower than any other tenant in the building. Along with that, 8 months of free rent to cover construction and initial operations. The tenant improvement allowance gave her the budget to build out the practice properly, and she locked in exclusivity as the only veterinary practice in the development.
Eighteen weeks after first reaching out to PRG, Dr. H signed the lease. Her practice is now open and thriving in one of Austin’s fastest-growing areas.
“She’s very pleased,” Rusty said. “She would be up there on my Mount Rushmore of clients.”
Note: Details have been anonymized to protect client confidentiality.