Practice real estate

Own the building, lease the space, or sell it back and stay.

The rent a practice pays is the income the building collects. We price the practice and the property together, so neither one is left on the table.

Looking for space, a renewal or a relocation? Tell us what you need.

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A single-story stone and wood professional office building with the Colorado foothills behind it

The property decision

The practice and the building are one decision with two price tags.

Many owners own the building their practice occupies. At a transition there are three broad paths, and the right one depends on the owner's goals, the practice's earnings and what a buyer and a lender will accept.

A sunlit dental practice corridor with oak floors and glass treatment rooms
01

Keep the building

The owner sells the practice and stays on as landlord, collecting rent from the buyer under a new or assigned lease.

  • Income continues after the sale
  • The lease has to work for the buyer and the buyer's lender
  • The owner keeps the property risk
Owns the building after
You
Rent is paid to
You, by the practice buyer
Cash from the building at closing
None
A closing table with a signed agreement, a brass pen and office keys
02

Sell the building

The building sells to the practice buyer or to a separate property buyer, at the same closing or on its own timeline.

  • Converts the property to cash
  • Financing and tax treatment differ from the practice sale
  • Timing can be coordinated with the practice closing
Owns the building after
The practice buyer or a property buyer
Rent is paid to
The new owner, if the practice leases
Cash from the building at closing
Yes, at closing or on its own timeline
A modern dental operatory in a practice that stays in place
03

Consider a sale-leaseback

The owner sells the building to a property buyer and the practice signs a long-term lease to stay in place.

  • Can release equity while the practice keeps operating
  • The rent becomes a permanent cost to the practice
  • Lease terms have to be evaluated against practice earnings
Owns the building after
A property buyer
Rent is paid to
The property buyer, under a long-term lease
Cash from the building at closing
Yes, and the practice stays in place
THE RENT One number Practice earnings Rent is a cost Building income Rent is revenue Practice value Moves opposite to rent Building value Moves with rent How one rent number moves two values Higher rent raises the income the building produces and lowers the earnings the practice produces. Lower rent does the reverse. Because each value is built on that income, the rent decision moves both prices at once. THE RENT One number Practice earnings Rent is an operating cost Building income Rent is the revenue Practice value Moves opposite to rent Building value Moves with rent
Set the rent for one side alone and the other side pays for it.

Why the two cannot be priced separately

  • A practice buyer and the buyer's lender look at rent as a cost against earnings, so the lease shapes what the practice is worth.
  • A property buyer looks at the same rent as income and at the tenant's strength as the risk, so the practice shapes what the building is worth.
  • Lease term, renewal options and assignment rights decide whether a practice buyer can finance the deal at all.
  • Selling the practice and the building on different timelines can leave the owner negotiating against their own earlier decision.

We look at both values together, show the owner the tradeoff in plain numbers, and coordinate the practice side and the property side so they close on terms that fit each other.

XpoNential evaluates the practice economics and coordinates the transaction. Real-property sales, leasing and sale-leasebacks are handled through appropriately licensed real-estate professionals under separate fee arrangements. XpoNential does not provide legal, tax, appraisal or investment advice.

Golden-hour aerial of a modern medical and dental office park with mountains behind

The real estate

The building is its own asset. Price it on its own terms.

  • 6%of the first $1M
  • 5%from $2.5M to $5M
  • 4%above $10M

For buyers

Ask us how to get your office equipped or remodeled with little or no cash out of pocket.

When the building is part of the deal, our real estate partners can fund the build-out through a sale-leaseback, and it is repaid through the lease instead of out of your pocket at closing. Terms depend on the property, the lease and the lender.

Ask about a funded build-out

Bring us the lease or the deed.

Owned building, leased space or a sale-leaseback offer in hand. We will tell you what it does to the value of the practice and the building.

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