There’s no question that the COVID-19 pandemic has had a major impact on healthcare professionals in general, and on medical and dental real estate in particular. During the height of the pandemic, many dental clinics were forced to close their doors
, due to the very close nature of dental work, and the danger of spreading the disease to employees and patients. After precautions were in place and treatment resumed, many dentists and healthcare facilities contemplated selling their practices.
COVID’s Impact on Commercial Real Estate
Many dental practice owners have decided to close and sell their practices sooner than they expected to. This of course, opens commercial real estate to new tenants, although filling vacancies can take some time. Another impact on dental real estate is landlords have been more willing to work with tenants in an effort to keep them. Medical tenants are some of the best tenants, being less risky than other occupants. For that reason, landlords are offering more concessions and more willing to help clients overcome their serious losses from the pandemic.
At the very least, the pandemic has forced medical tenants and dentists to reconsider the physical footprint, as well as the financial terms of their lease. On the other hand, landlords are far more willing to work with medical clients, recognizing that some lease concessions are much more desirable than having a vacant piece of commercial real estate.
The future of dental real estate
Healthcare facilities and dental practices are now reviewing their lease agreements more closely than before. Given the fact that real estate is usually the second largest expense for any healthcare organization, it is prudent to fully understand the entire lease agreement. Some leases do include blind spots and costly pitfalls.
These may have gone unnoticed in the pre-COVID world, but are now up for negotiation.
Securing favorable lease terms is much easier today. If your lease expires within the next 2-3 years, it’s a good idea to begin your search now for a more beneficial lease or location.
Let Tower Realty Partners Negotiate for you
Tower Realty Partners specializes in finding and negotiating commercial real estate for healthcare providers in Colorado, including dental, medical and veterinary services. Our expert brokers have personal experience working within the medical and dental industries, which allows even more insight to finding you the right space for your practice. Let Tower help you find the best real estate option for your business, they manage all aspects of the process! Contact us
today to start your commercial real estate transaction.