Dental Financial Advisory / Industry hub
Dental Practice Real Estate Strategy
Many dentists practice inside a building they own, and how that real estate is held affects taxes, liability and eventual transition. Pagac helps dentists evaluate practice real estate: owning versus leasing, separate entities for the building, rent arrangements, financing and what happens to the property when the practice is sold.
Should a dentist own the practice building?
Owning can build equity and control the practice's single largest fixed cost, but it concentrates capital and management burden in the dentist. Leasing preserves flexibility for growth and relocation. The answer depends on the dentist's capital, goals and timeline.
For owners planning a long career in one location, ownership is at least worth modeling every time; for others, lease flexibility wins.
How should the building be held?
A common structure holds the real estate in a separate entity, often an LLC owned by the dentist or family members, which then leases to the practice. Rent between related parties must be reasonable and defensible, because the IRS scrutinizes related-party arrangements.
Separate ownership also matters at transition: the practice and the building can be sold to different parties on different timelines.
How does real estate interact with transitions?
When a practice is sold, the buyer may or may not want the building, and the dentist may prefer to keep a rental income stream from the property. DSO and other institutional arrangements often have their own real estate preferences, which shape the deal.
Pagac models the practice and the property together so the transition answers for both, not just the easier one.
Practice real estate is a second business inside the first: how it is owned, leased and eventually sold changes the economics of the whole career.
For practice owners
How financially intelligent is your practice?
The Pagac Financial Intelligence Assessment helps dentists see where their practice stands across structure, taxes, profitability, real estate and retirement.