Dentistry Marketplace Trending
Change is in the air! There is a definite shift in the dental market; below are some of the changes.
Here is what we are seeing….
… for the first time in eight years, the market is shifting to a sellers market. We are occasionally seeing multiple offers on the same space, which equates to getting less tenant improvement dollars for build outs. We are also seeing full price offers for listings, although this is not happening everywhere in the valley. Good tenant deals can still be found, but they will possibly continue to erode.
… this past 6 months we have seen a huge increase in the construction field as a whole. The resulting effect, of supply and demand, has prices inching up. It’s currently harder to get multiple subcontractor quotes, and it takes longer to get quotes. This is important to note when building with a demanding timeline.
… dental specialties such as pediatric and orthodontics are now looking for frontage and visibility, and continue to do higher end offices, frequently with larger square footage. This is in direct relation to general dentistry sending out less referrals and doing more themselves.
… lenders report that dental practice purchase price values are increasing. Cost to yearly production had been averaging in the 70% range. However, the latest trend is revealing that the percentage is getting closer to 80%. (Note this is only a general observation and please note, there are many factors involved in determining the correct office value.)
… corporate dentistry is continuing to increase its presence in the state. Not only are the current corporate giants building and buying more offices, but more new corporate giants are putting down roots in the state.
… the great news is dentistry continues to thrive and do well.
… growth strongly continues throughout the valley and state. Families continue to grow and people continue to move into the state. (See link to recent article … www.pinterest.com/DencoDental/making-news/ . )
Join us next week as we explore the Dental profession itself in part two of our three part series on New Trends In Dentistry.
“Change is difficult. Not changing is fatal.”
– William Pollard
