Dental Practice Owners: Should I buy or rent a space for my next dental practice?

One of the key considerations when looking to expand or relocate to a larger facility, is whether it’s in your best interest to buy a property for your dental practice, or to lease a space. Every dental practice owner has their own set of individual circumstances, needs, budgets, goals, and everyone is on their own growth trajectory. This means that there is no cookie cutter advice or approach that we can provide for everyone to follow. However, our goal is to assist dental clinic owners get all the information to take that next step with confidence.

While we think that everyone would benefit from doing their own research and talking to dental practice design and construction experts, we aim to list out the pros and cons of each choice below. Read on to find out what to consider when buying property for your dental practice or renting your next location.

Buying a Property For Your Dental Practice – PROS

Be your own landlord

This sounds simple but is often the major pain point of those who rent a dental practice location; the feeling of paying off someone else’s loan, when you could be paying down your own and reaping the long-term benefits. As the owner/landlord, you can potentially lease out spaces within the facility to other practitioners/businesses, expanding your ongoing income and paying off your own loan, faster.

Property value appreciation

Over time, real estate prices generally trend upward. Buying and building a dental practice now could see your investment appreciate in value substantially over 5, 10, 20 years, helping build equity for whatever your plan may be for the future.

Dental practice design freedom

Purchasing a dental practice location and building from scratch allows you to develop and design it exactly how you want from the very start, rather than working within the confines of someone else’s four walls. This also allows you the freedom to master plan the site for expansion options in the future.

Retirement income planning

By buying the location for your dental practice, in the future you have the ability to sell your dental practice but keep the building and have a long lease in place. The new practice owner then continues to pay rent for as long as they stay in the building, further assisting in paying down your debt and reaping the reward of your asset.

Ongoing control over the space

As the owner, you have the power to control your dental practice facility. This can be as simple as updating the interior design elements, to larger scale works such as extensions, renovations etc. to create a dental space as you envision.

Newtown Periodontics: Dr James van den Berg wanted to relocate his practice in order to deliver the ultimate patient experience, and worked with our in-house team of architects to bring his vision to life.

Buying a Property For Your Dental Practice – CONS

Significant upfront investment/outlay of cash

Financing the initial purchase of a dental practice facility is a large commitment. Navigating the high initial cost vs potential future returns must be clearly understood.

Responsibility as a landlord

Buying a property for your dental practice comes with an array of responsibilities, especially when leasing our a portion of your property. Maintenance, repairs, and any costs of these fall to you as the owner.

Interest rate rises

There are many variables in purchasing and owning a property, a major one being interest rate fluctuations. Your calculations must allow for what your repayments may look like if unforeseen interest rate hikes were to occur and to ensure it doesn’t impact your lifestyle.

Renting a Space For Your Dental Practice Facility – PROS

Lower upfront costs

Leasing a space for your dental practice facility typically requires less upfront capital compared to buying a property for your dental practice, making it more accessible for established owners to find a larger or additional space faster, with less financial barriers.

Financial Practicality

Subject to what rent you will pay, it can sometimes make perfect sense to rent a space for your dental practice instead of buying due to how the numbers stack up. Rent is also a set cost with minimal fluctuation compared to interest rates.

Less responsibility

Any issues to the building are not your responsibility, it’s on the landlord (i.e. leak in the roof/smashed window etc.) This allows you to place your focus on more important factors within the business like creating an elevated experience for your patients.


Leasing offers flexibility in terms of location and space requirements. It allows dental practitioners to adapt to changing needs and market conditions without being tied down to a specific property.

Newtown Periodontics: Built and equipped with a full suite of Dental equipment from OPTIMA, this light-filled practice has drawn overwhelmingly positive feedback from both patients and staff.

Renting a Space For Your Dental Practice Facility – CONS

Design limitations

Dental practice design is limited when you lease. You are restricted by the built environment, the length/width of the space, including any floor height changes etc.

Paying off someone else’s loan

Unlike property ownership, leasing does not build your own equity or offer potential for property appreciation, missing out on potential long-term financial benefits. At the end of your lease, you have nothing tangible outside of the success of your dental practice business.

Limited control over space

As a tenant, you are at the mercy of the landlord and don’t have complete control over your practice facility. If in the future you plan on renovating or modifying the building, you will have to work within any landlord or building management design guidelines or requirements.


Leasing leaves you vulnerable to certain situations, such as rises in rent or being forced into relocating if the landlord unexpectedly decides to sell the property.

Taking the Next Step Towards Your Dental Practice’s Growth

At OPTIMA, we understand every dental practice owner is on their own path, and every dental practice construction, fitout, or renovation is unique. We believe in creating trust and transparency at every phase of your journey with us, to deliver on your dental practice vision that you can be proud of for years to come. Speak with our experienced project team today and take the next step towards growth.

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