The Importance of Well-Defined Renewal Options

The Importance of Well-Defined Renewal Options

Dental tenants need renewal options to protect their investment in build-out and continue to develop their practice. 

These options (I say it in plural, because several options can secure the tenant’s space for many years) should be at an increase of no more than 2-3% per year.  

Renewal at Market Rate means nothing and is totally ambiguous.  It’s how the market rate is defined in the original lease. Savvy negotiation of the Renewal Option in the original lease is a single-edged sword that favors the Tenant. Landlords want tenants to renew. They do not want to incur costs for additional improvement allowances for a new tenant and real estate commissions to obtain a new tenant. They are business people-Landlords do not want their cash flow interrupted by losing rental income due to a lack of occupancy. It takes time and effort to find a new tenant. Tenants generally don’t want to move their practice, either, except in the case of an adversarial Landlord/Tenant relationship.  

In the case of a practice sale, it is also vitally as important that the lease conveys to the practice purchaser. The practice value is decreased at the time of sale without a lease in place that protects the Tenant from hidden business risk. There have been instances where the sales price had to be decreased by tens of thousands of dollars by the practice seller because of perilous conditions allowed in the lease. Remember, in the case of a practice purchase, the purchaser inherits the seller’s lease. Practice Owners, make sure your lease adds value to your practice!!!

"I have used Mr. Gelfand’s services and found him to be very knowledgeable about dental real estate. He is very thorough, is available to answer my questions quickly, and works well with the Landlord’s brokers.

I recommend Mr. Gelfand and DENTREXX for your real estate needs."

Sreekanth Emani, DDS
Chicago, IL

DENTREXX Does What Others Don't.

DENTREXX exclusively represents dental tenants and buyers in selecting strategic locations, negotiating money-saving Letters of Intent, and in negotiating business protective stipulations throughout the dental lease.


Leave the real estate portion of your dental practice to us.


We’ve been through two or three down markets in our 50+ years in representing tenants.  When market conditions became depressed and lease rates dropped, many of our clients were able to decrease their lease rate through savvy renegotiation of that rate contained in the Renewal Option.  

During a market downturn, it is very possible that a tenant can get a lower rent rate elsewhere, with significant build-out allowances and free rent – and, guess what – the tenant’s Landlord knows this and may be willing to renegotiate the lease rate. The reason for that is clear – the Landlord wants to retain the current tenant.  

Also, keep in mind that if the market is depressed, many Landlords in an entire area will be looking to lease their spaces by offering decreased rates and more generous build-out allowances in order to get a tenant.   

Lease rate reduction at Renewal happens quite often – when the area market reflects lower rents overall than what is stated in the original lease and when there is a plethora of vacant space in the area.   

It’s a matter of knowing the local market turf through thorough research, savvy negotiation, and the psychology of knowing how to get the best deal at the right time.


What dental practices don't know can cost them thousands...

About DENTREXX: How We Make a Difference for You and Your Dental Practice Profitability

DENTREXX is different because we make a difference! DENTREXX exclusively represents dental tenants and buyers in selecting strategic locations, negotiating money-saving Letters of Intent, and in negotiating business protective stipulations throughout the dental lease.

Learn More

Four Core Elements for Profitability in the Real Estate Portion of Dental Practice Ownership

In order to have an overall profitable practice, there are many factors outside of the real estate portion that exist. DENTREXX's one and only focus is on providing the 4 state-of-the-art Core Elements for Profitability in the real estate portion of practice ownership.

Learn More

The Age of (Mis)Information: Myths That No Dentist Should Believe Before Leasing a Dental Office

While it is doubtful that a dentist will go to the Internet and become a lease negotiation "Do-It-Yourselfer", there are misconceptions that can cost dental practitioners tens of thousands of dollars every year! Explore why these common myths often cost tenants like you thousands!

Learn More

Know the Hidden Business Risks That Could Threaten Your Dental Practice's Profitability

"Hidden Business Risks" in Leases that are overlooked by most real estate professionals and many attorneys can wreak havoc in practice ownership – in profitability and in time away from patient treatment spent to resolve problems that can become nightmares.

Learn More

The Importance of Exclusive Representation - Don't Overlook the "F" Word

It's all about the "F" word. Without exclusive licensed real estate broker representation, the dentist has no one watching his/her back! Licensing means we must adhere to the highest level of fiduciary responsibility to our client.

Learn More

Why DENTREXX Services Cost Zero - How We're Paid For Our Sevices

If the dental tenant has no broker, the landlord pays the listing broker the entire agreed-upon fee. If the dental tenant has broker representation, the Landlord’s broker pays a portion of his/her fee to the dental tenant’s broker – and there is no cost to the dental tenant.

Learn More

The Value of Having a Dental-Specific Team of Professionals On Your Side

Any dentist contemplating practice ownership should have an experienced group of dental-specific professionals on his/her team. Dentists, have an experienced team of proven dental-specific professionals on your team before entering into a lease.

Learn More

Preparation for Your Successful Dental Practice Exit Strategy

View your office lease as a powerful portion of practice ownership, when negotiated for business protection. A business-protective lease plays an integral part in maximizing practice value at the time of sale and significantly helps to prepare for a lucrative Exit Strategy.

Learn More

The Value of Well-Defined Dental Office Lease Renewal Options

Dental tenants should never settle for “renewal options at market rate” unless there is an accepted method of determining market value to arrive at a lease rate. Tenants should not sign a lease without the specifics of the renewal right.

Learn More

The Age-Old Question: Whether to Lease or Buy Your Dental Office?

There is a fallacy created by most real estate salespeople/brokers or unlicensed consultants, that it’s always best to buy your location rather than lease it, making it seem that a purchase is a guaranteed win for the purchaser. Not so fast, here!

Learn More

Buying a Dental Practice? It's Important to do the Homework!

Purchasing a practice is a huge emotional and financial investment and entails lots of moving parts. Dentists shouldn’t embark on such a journey without careful evaluation by a team of professionals who have a solid and longstanding reputation of helping dentists.

Learn More

DENTREXX Dental Practice Success Stories - Real Dentists Share Their Personal Experiences

Satisfied DENTREXX clients proudly share their practice's stories of success and the positive impact DENTREXX lease negotiations have had within their practices.

Learn More