Solo Dental Office: Renew or Buy
We were hired by a solo dental practice in an affluent area of the Valley with almost a year until their lease would expire. Although the client had been in the office for approaching 10 years, they were dissatisfied with a few elements of the current property, mostly property maintenance related to the building being in foreclosure.
We began by meeting with the client and determining under what circumstances a relocation might be considered. We then went out to the market and found various options that might fit the requirements as discussed. Over a period of a few months, we toured and met with various property owners and brokers.
After considering more than a dozen options, the tenant decided that based on the comparative costs, pursuing a bank owned office condominium might be a feasible next step for their financial career. We entered negotiations with the bank’s broker and had ultimately come to an acceptable price. During this time, we had maintained conversations with their existing landlord’s agent and prior to their funds becoming non-refundable we made a last ditch effort “low ball” lease offer to remain as a tenant in the property (provided the servicing agent would address the maintenance issues).
Much to our surprise and excitement, the landlord excepted our proposed terms at less then 50% of the current rental rates with minimal annual increases. Although the purchase option was good, this was even better.
Through strategic planning, mutual trust and patience, we were able to save our client significant money and allowed them to remain in a suite that was ultimately well positioned in attaining their personal and practice goals.