Is Relocating Your Dental Office Space Worth It?
While relocating may seem like a good idea or perhaps a matter of preference, there are major considerations to squarely face before you make a final decision. Not only can it be a costly endeavor, it can be unsettling to the business side of your practice. Here are some helpful points of interest to take into consideration before you relocate your dental office.
- Relocations Costs: Many leases do not put the onus on the landlord to cover relocation/moving expenses. This means all costs associated with the move, including demolition of the current space, renovation and build-out costs in the new location, marketing materials and stationery, movers, etc., are your responsibility. Relocating can easily add up to hundreds of thousands of dollars in unexpected costs to a dental tenant.
- Increase in Rent: If you are moved to a more “favorable location” (ex. from the third floor to the first floor), you may face an increase in rent for the upgraded real estate. If you are moved to a larger location, you may suffer an immediate increase in rent for the additional square footage.
- Size: There is no guarantee that the size of the new location will be comparable to the original premises. If smaller, you will have to downsize, reconfigure layout and operatory rooms, and ultimately suffer a loss in production.
- Business Downtime: If you are relocated, you could face business “downtime” or “dark-time” while your new practice is being built out. Every day that your practice doors are closed before the new location is functional is a loss of revenue.
- Downgrade in Facility: You may be forced to trade in prime real estate for an out-of-the-way corner unit with low visibility and zero foot traffic. The landlord controls the relocation which means that you could face a serious downgrade in the quality of your environment, as well as a lower potential for walk-in business.
- Competition: You also may not have control over potential competition in the vicinity of your new unit. Your new dental office space may mean close proximity to competing dental offices, which could negatively impact your ability to draw in or retain patients.
- Accessibility: For both new and existing patients, accessibility is a huge factor. If your new dental office is not easily accessible, or does not have parking amenities, you risk alienating your client base. When you do open your doors again, you may find that not all of your patients were willing to make the move with you.
Take time to consider the implications of relocating your dental office space. It’s an important business decision that could impact your practice for years to come. If you find yourself in a quandary about the whole question of a new dental office, connect with the experts who know healthcare real estate inside out and backwards. With 20 plus years under their belt, they have answers to finding the best dental and medical office space in the country.