Is Relocation the Right Move for Your Dental Practice?

As dental professionals near retirement, the question of whether to move their practice becomes more relevant - especially for those planning to sell within the next few years. For others who are further from retirement, different considerations may apply. But if a sale is on the horizon within five years, the decision to stay or relocate could have a significant effect on the practice’s value and market appeal.

Why Location (and Lease Terms) Matter More Than You Think

When assessing the marketability of a dental practice, location is one of the most influential factors. A high-traffic, easily accessible area can dramatically increase buyer interest and practice value. In contrast, a practice located in a less desirable area - or tied to a problematic lease - may deter potential buyers.

Beyond location, the lease itself can either support or hinder a future sale. Clauses that limit long-term use of the space—such as demolition, relocation, or restrictions on lease assignment—can raise red flags for buyers. These conditions introduce uncertainty, which directly affects the perceived value of the practice.

If your lease includes one or more of these limiting terms, now is the time to evaluate your options.

Addressing a Problematic Lease

The first step in addressing any unfavorable lease clauses is to speak with a qualified lease advisor or lawyer. Depending on the timing—such as an upcoming renewal—there may be room to negotiate improved terms.

Keep in mind, landlords may not always be open to removing clauses that benefit them. Still, even small changes can make a big difference. If renegotiation isn’t possible, you’ll need to assess whether staying or relocating makes the most financial sense.

The Cost—and Potential Payoff—of Moving

Relocating a dental practice is a major investment. So, the key question becomes: Will relocating increase the value of the practice enough to justify the cost?

For smaller practices, the return on that investment may not be strong enough. In such cases, staying in place and preparing for an eventual sale—or possibly merging with another practice - might be the better route.

But for larger or higher-performing practices, a move can sometimes unlock substantial value. Consider a case where a practice was located in a high-end retail mall. When the landlord refused to offer favorable lease terms, the owner opted to relocate just a short distance away. The new location had lower rent, better lease flexibility, and a modern design—resulting in a more appealing setup for both patients and potential buyers. The patient base followed, and the move ultimately boosted the practice’s resale value.

In another example, a thriving practice facing a demolition clause in its lease chose to move to a nearby unit with updated amenities and a more secure lease. The result: improved value and a stronger negotiating position when it came time to sell.

Every Decision Deserves Professional Insight

Relocating a dental practice is not a one-size-fits-all decision. That’s why it’s critical to get input from trusted professionals—your broker, accountant, and lawyer—before making a move. These advisors can help you weigh the cost of relocation against the potential value it could add to your practice.

They’ll also help ensure the decision aligns with your overall financial and retirement goals, not just the immediate benefits or frustrations with your current space.

Final Thoughts: Think Strategically Before You Move

Whether you’re planning to sell soon or simply want to strengthen your position for the future, deciding whether to relocate is a major strategic choice. It requires careful analysis of your lease, the local market, and the financial realities of moving.

By consulting with experts and making a well-informed decision, you’ll protect the long-term value of your practice and increase its appeal when the time comes to transition.

At Meridian Sales & Appraisals, we work closely with practice owners to help them understand how location, lease terms, and timing can influence the sale of their practice. If you’re considering a move - or facing a tough lease - reach out to us early. We’re here to help you make the right move for your future.

Alan Rustom