Over these last 7 years many of you have enjoyed the “buyer’s market” by getting incredible lease rates, great build-out dollars, and amazing purchases at below market value.
It was a market in which you could make multiple offers and play the waiting game of negotiating for better prices. Well, the times are changing and these deals are getting farther apart and harder to find.
We are entering a “seller’s market”. If you find an ideal location that fits all your needs, you’ll want to be ready to act, and act quickly! By having a dental specific broker (one that understands the dental office market) you will be way ahead of the real estate game of leasing and purchasing. They will be able to help you determine which areas are hot and more subject to quick offers and closings at better prices.
In the past 6 months I have known many dentists who have not followed the advice of their broker regarding the urgency of making an offer and doing a deal…only to lose the great opportunity. Or, they unfortunately listened to the advice of an unqualified broker and tried to negotiate a deal without the knowledge and experience needed for the most favorable outcome.
Lease rates and the landlord financial contributions towards Tenant Improvements are changing. Lease rates continue to climb, while many landlord T.I. contributions are declining. All the more reason to have an expert on your side!
As always, there are exceptions to these comments as the market continues to be driven by location, supply and demand, landlords’s financial stability, and the investment property portfolio.
