Why Dental Real Estate Might Be the Most Urgent Decision of Your Startup Journey

Why Dental Real Estate Might Be the Most Urgent Decision of Your Startup Journey

If you’re planning to open your own practice, here’s a wake-up call: the ideal dental real estate for your new office might not be available for much longer. Not because you’re behind—but because the market is moving faster than ever.

And yes, that includes dental real estate.

Whether you’re casually exploring locations or actively searching for your perfect site, this is a decision with long-term impact—and it’s one of the few that can’t easily be undone.

Let’s talk strategy, data, and what you need to know before someone else signs the lease on your ideal space.

Dental Real Estate: Why Waiting Could Cost You

We’ve been watching real estate patterns closely, and several trends are converging. If your plan is to open in the next 12–24 months, here’s what’s happening behind the scenes:

1. Fewer Ideal Spaces Are Available
Office vacancy rates dropped from 12.7% to 12.1% in just one year. That might sound like a small shift—but in dental terms, that means fewer locations with the visibility, access, and zoning you’ll need.

2. Startup Practices Are Accelerating
Startup dental practices expanded by 16.8% last year alone. That’s not a typo. This means other doctors are already claiming the best real estate—especially in high-growth or under-served areas. If you’ve got your eye on a corner suite with great signage and foot traffic, chances are, someone else does too.

3. Automatic Lease Renewals Are Sneaky
Some landlords are sending fewer lease expiration notices. Translation? If you’re in a space now and dreaming of relocating, your lease might automatically renew without warning—and without negotiation. Oh, and automatic renewals usually come with built-in rent increases.

4. Rising Rents, Shrinking Margins
As practices feel more pressure from PPOs and competition, margins are tightening. But rent rarely goes down. If your current lease eats up 10% or more of your revenue, you’re overpaying. The sweet spot? 3–7% of gross revenue. That means if your practice generates $1M, your rent should be around $30K–$70K. If it’s more—and you’re locked in—you’re bleeding profit.

Here’s What to Keep in Mind as You Plan Your Move

Whether you’re already looking at spaces or still wondering if this is the right year, a few key questions can keep your strategy sharp:

• What are vacancy rates like in your target area—and are they dropping?

• Are new practices opening near you, and what locations are they securing?

• Is your lease set to auto-renew, and do you know the terms in advance?

• Is your rent still in line with your revenue—or has it quietly outpaced your growth?

Real-World Reminder: That “Perfect” Space Won’t Wait

We’ve seen it too many times: a doctor scopes out the perfect space, waits to “be ready,” then watches another practice move in. Suddenly, their dream office becomes a daily reminder of what might’ve been.

If you’ve ever driven by a location thinking, “That could’ve been mine,” you know the sting. But here’s the good news: it doesn’t have to end that way.

With the right strategy, a clear timeline, and expert guidance, your name can be on the sign this year.

Let This Be the Year You Move Forward

Opening a dental office is complex—no one’s pretending it’s easy. But it is predictable, when you follow the right steps.

Dental real estate is one of the most critical and time-sensitive pieces of the puzzle. It impacts everything from patient flow to profitability. Don’t let indecision—or timing—push your ideal location out of reach.

If you’re serious about ownership, we’d love to help you get clear and get moving.

Let’s make this the year your vision gets its own set of keys.

—Stephen Trutter