Hidden Office Lease Risks that Devalue a Dental Practice (On-Demand)-Webinar Recording

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Video Summary

Aaron Gelman of Acuity Negotiations explains how office leases can undermine a dental practice’s value, sale, or financing. Dentists often focus on rent and other immediate costs, but overlooked lease terms can create far greater risks.<br /><br />He recommends starting renewal negotiations 12–18 months ahead, after confirming the true lease commencement and expiry dates and the deadline to exercise any renewal option. Missing or misunderstanding these dates can cost tenants leverage or renewal rights. New practices should also avoid taking possession before building permits are secured, since delays can trigger rent payments before construction can begin.<br /><br />Key risks include renewal options tied personally to the original dentist, vague or punitive renewal terms, and clauses allowing landlords to terminate or sharply raise rent when the practice is assigned to a buyer. Demolition and relocation clauses can also jeopardize a practice’s continuity and value.<br /><br />To protect a future sale or retirement, leases should include transferable renewal rights, clear assignment protections, death and disability provisions, and—where appropriate—early-retirement flexibility. The broader advice is to prepare early, understand the landlord and lease, and negotiate strategically rather than waiting until a deadline is imminent.

Keywords

dental practice lease

renewal negotiations

assignment protection

renewal options

lease commencement

landlord clauses

practice valuation

retirement flexibility