According to the Dental Clinic Manual, it estimates a cost of $100 to $200 per square foot just for construction —this doesn’t account for equipment or supplies. With that “typical” 2,400 square footage 6-operatory office, you’re looking anywhere between $240,000 to $480,000.
How much does it cost to buy a private dental practice?
In general, most dental practices will require an initial investment of about $500,000. We’ll cover how you can come up with that kind of cash later on in this post. So, how does that half a million break down? As you’ve likely guessed, your construction costs will make up a large portion of the total costs.
How long does it take to build out a dental office?
A Build Out plan can be very comfortably achieved within 90 days, but seldom takes longer than 120 days. The entire process for a Build-Out averages out to be about 6 months from inception to completion.
How much does it cost to buy an orthodontic practice?
It generally costs, without buying a building, between $300,000 to $500,000 to start an orthodontic prac- tice. It is much more difficult to obtain financing than in the past. With the increase in competition and the down- turn in the marketplace, it would be very difficult to make this work.
Who is the owner of a dental practice?
Many times the dentist might own the building jointly with a spouse or a family trust. In any structure, the entity that owns the real estate enjoys interest and depreciation expense deductions, and can build equity as the principal is reduced monthly for however long the practice operates.
Is it good idea to own dental office?
If you purchase commercial dental office real estate today and sell the building 20 years from now, you can expect a decent rate of return on your investment. An excellent place to start when you shop around for a practice is with a dental practice lender.
Can a dental practice own its own real estate?
If you buy a practice in an area you see as a long-term neighborhood or city, then owning the real estate can help keep your occupancy costs under control for the dental practice. Dentists purchasing CRE commonly create an LLC (or any corporate entity) to own the real estate separately from the dental practice.
Is it bad to own a dental practice?
Absolutely yes. If you buy at a market peak like we’re seeing today in many cities across the United States, and you have to sell under duress at some point in the future, this can certainly be a devastating scenario. Also, at the end of a long ownership period, you will be forced to add back depreciation upon the sale.
