Why Own The Building That Houses Your Dental Practice?
Dentists who own the buildings that house their practices have distinct advantages over those who lease their commercial spaces. Below are several reasons for owning your dental practice's building.
Branding and Marketing
One of the best things about owning your practice's premises is the ease and flexibility of marketing. You decide the building's colors, the type of signage to use, and its placement or location. That kind of flexibility might not be possible if you lease your practice's space.
For example, a commercial lease might bar you from putting up a large LED sign on their premises. No one will stop you from putting the largest LED sign on a building you own.
Neighboring Tenancy Control
Neighboring tenants, in the same or adjacent buildings, affect your business in two main ways. For one, the neighbors can turn away potential clients or help you attract them. Secondly, the neighbors can compete for the same clients as you.
Consider two pediatric dentists, one with a bar as a neighbor, and one with a family dentist as a neighbor. The bar might repel clients for the first dentist, while the family dentist might compete for the same clients with the second dentist.
You might not control whom you can have as neighboring tenants if you lease a space in a building. However, you get to choose your neighbors if you own the whole building. The ownership allows you to control who can rent in the building.
Renovations and Upgrades
Your commercial lease determines the renovations or alterations you can make. For example, the lease might prevent you from portioning the rented space in a specific way, knocking down a wall to connect spaces, or extending the building. Again, you can do all that if you own the building.
Lastly, building ownership allows you to plan for your practice's future without interference risk from a property owner. Long-term planning is difficult while leasing a commercial space because:
- You cannot be sure the landlord will renew your lease upon its expiration
- The landlord might increase your rent and expenses at lease renewal
- You might struggle to increase or decrease your practice's square footage as you wish
Owning the building where your practice means you can plan for its use even a decade in advance.
Hopefully, you have the resources to purchase the commercial property for your business. Don't forget to choose your business location as carefully as you do with the building. Consult a commercial real estate realtor to learn more about commercial properties for sale.