Dental Office Leasing

[Henry Clark]

Anyone leased out to a New dentist from college before?  

Inexpensive startup lease first year.   Then convert to 10 year with option to buy?

Have you engaged them at college prior to graduation?  
Thanks.  Any other input. 

[Michael K Gallagher]

@Henry Clark I've not done a dentist specifically, but I've been on the tenant side of a startup retail medical unit.  When we rep startups, though they are still traditionally a practicing doctor with a fairly high net worth, and we are mostly able to do the deals because the LL's require a 10 year deal, we traditionally get 2 five year options to renew, and the LL generally requires a personal guarantee. 

If they were fresh out of medical school and didn't have a  high net worth I'd anticipate it being more difficult.

I'd anticipate leasing to a dentist fresh out of school with no book of buinsess, and really no experience running a shop of their own to be pretty high risk operationally.  I like the concept of a 1 year lease, but I anticipate the buildout for a dentist office to be fairly costly (maybe $350K+ if I had to guess based on my other experiences) unless the space is already built out as a dentist and they are backfilling?  

What makes you interested in doing the deal?  I assume you see something intriguing?