Your Lease Is Your Biggest Invisible Cost

Your Lease Is Your Biggest Invisible Cost

Most dentists obsess over equipment and labor. They ignore the lease. Mistake.

Median dental practice rent: 12-18% of revenue. A $1M annual practice pays $120K-180K per year in lease. Over 10 years: $1.2M-1.8M. That's more than your CBCT and all your furniture combined.

Renewal time. Your 5-year lease is up. Landlord wants 3% annual increases. You're in a good location, so you accept. Five years later, you're paying $4K/month instead of $3.9K. Seems small. It's $600 per year. Over five years: $3K more.

But here's the real cost: opportunity. That $4K/month could fund:

- A second hygienist (production: $150K/year).

- Rent at a cheaper location (production same, profit up $15K/year).

- Dedicated space for implants (case acceptance up 10-20%).

Renegotiate now, before renewal. Competition for retail space is soft in 2026. You have leverage. Ask for:

- Flat rent for five years (no annual escalator).

- Tenant improvement allowance ($30-50K).

- Option to renew at market rate, not landlord's guess.

If your landlord won't budge, walk. Good locations exist. Switching costs $10-15K. Your savings will repay it in 12 months.