Should You Jump In?
If you’ve ever thought of owning the property underlying your dental practice, now is the time. The commercial real estate market has stabilized over the past few years and there is an abundance of exceptional properties available for purchase. With relatively stagnant sales during the Great Recession, it is now truly a buyer’s market with commercial real estate prices lower than they have been in decades – down 30% from the national peak* before the crash in 2008. In addition, properties are available in prime locations. Small business owners are starting to invest in premium retail properties for their private enterprises.
Many commercial real estate owners are also realizing a cost savings in building out their properties. The competition among builders for CRE construction jobs has driven costs down, with some builders significantly cutting their margins in order to maintain payrolls. Dental office designers and architects are also trimming costs as they compete for fewer projects. As a result, the commercial property owner often has more room to negotiate prices.
Purchasing the real estate where your practice resides will likely be one of the most expensive investments you will ever make. But if you can ensure that the property is suitable for your practice, and is capable of supporting long-term growth without overtaxing your current cash flow, it can also provide a solid foundation on which to build your business and future.