For Dentists Who Own Their Real Estate

For Dentists Who Own Their Real Estate

A few weeks ago the Fed raised interest rates 0.25% with another possible rate hike this month when the Fed meets again. 

Wall Street is assessing an 80% likelihood that the Fed will not change their interest rates in September, 70% likelihood they continue flat in November, and 61% that there is no change in December when they meet again.

What does this mean for Dentists who own the real estate their practice occupies and are thinking about partnering with a DSO?

First, the lending environment for Commercial Real Estate (CRE) should stabilize, and borrowing rates may come down, additionally allowing lenders to loosen some of their lending criteria.

Second, it helps buyers/CRE investors underwrite assets more accurately, in turn bringing more buyers back to the market.

For those dentists who don’t want to be landlords and are looking to have the DSO they are partnering with sign a long-term lease so that they can sell their building to an investor, this should allow for more buyers and lower cap rates/higher sales prices.

Additionally, for those DSOs that have a CRE investment arm and are interested in buying the real estate along with the practice, they should also be able to acquire the partnering dentist CRE at a higher price.  It is also possible that DSOs that currently do not purchase real estate decide to enter the market giving dentists more options.

Many dentists leave money on the table related to their real estate when assessing a DSO partnership or traditional transition because they only focus on the sale of the practice, when in fact the real estate can be just as valuable. 


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About Xite

Xite is a renowned company that specializes in assisting physicians, dentists, optometrists, veterinarians, and other medical professionals in realizing their dream offices. Since its establishment in 2013, Xite has been a prominent player in the industry, operating six offices across the United States. Their team of professionals is dedicated to providing comprehensive support to clients looking to open, sell, or purchase a medical practice. For more information, visit

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