4 Myths of Owning Medical Real Estate

We’ve met medical providers across the country who believe leasing is easier than building a medical practice. They think that building and owning your practice is too expensive or too complicated to manage, or that ownership will tie you down. 

At Ashton Gray, we’ve built our business model on the idea of breaking down barriers that separate doctors from owning their ideal practices — making high-quality, privately owned healthcare more accessible. Here are four of the most common myths we hear about building and owning a medical practice and how we can help you navigate each aspect of medical real estate. 

Myth #1: Owning Is Too Expensive

Some medical professionals think that medical real estate ownership is more costly than renting office space. In reality, owning medical real estate is an investment in your future, whereas renting is a short-term strategy and an expense like medical supplies or stocking the breakroom fridge. Owning your practice is a more cost-efficient and wiser way to spend your money over the long term because you’re paying yourself and your business, not someone else. Building your practice with an experienced developer is the ideal long-term approach to grow and expand your current medical office. 

“Through the course of the term of the lease, a physician could pay over a million dollars in rent to someone else. We believe you should pay that money to yourself through real estate ownership,” says Jenna Adkins, VP of Real Estate Operations.

Ask yourself — would you rather pay rent to fund someone else’s business or lifestyle or invest in your practice and future?

 

“You cannot build equity when leasing your space,” according to Blake Curtin, Associate, Real Estate Partnerships. “The best path to building generational wealth is owning real estate.” 

Myth #2: It’s Too Complicated to Manage

We’ve encountered many doctors who believe that medical real estate ownership becomes too complicated to manage, instead settling for a rental or being crammed into a larger corporate system. With the right partner, managing a property should be simple and tailored to your individual needs — allowing providers to excel at the highest level and realize their full potential as physicians and business owners. 

“Ashton Gray has helped numerous doctors go from tenant to landlord without the headaches of developing or managing the building,” explains Blake. 

To get the most out of your practice and career, without the demands of property management, you need a full-service partner. At Ashton Gray, our specialized property management services source and maintain each property providing fast, efficient service for nearly any tenant need. 

“Construction and development for a medical office space is more complicated than people think,” says Jenna. “That’s why we have a robust team that works non-stop on your project so that you can focus on your practice.” 

Myth #3: I Don’t Want to Be Tied Down

There’s a common misconception that renting allows your business to be more flexible. In reality, ownership of the building itself offers the highest degree of control. Most medical practices are stable economic drivers that bring more business to local communities  — but renting and continuously moving can disrupt that. Ownership allows a provider to establish themselves in a community and still provides the flexibility to move, sell, and make a profitable return on their investment if they do. 

Outside of real estate location, ownership also gives you greater control over your facility. Your space can be tailored to your patients’ exact needs, equipment space, and style that drives patients toward newer, robust medical practices. Plus, rather than negotiating with a landlord or property owner to make changes or expansions, the decision is up to you. You have the power to design your floor plan and create the best flow and efficient layout.

Myth #4: Financing Is Hard to Secure

“Financing is complicated just like development,” says Jenna. “It can be difficult to understand and ultimately tedious when trying to run a practice. Our specialized team of experienced healthcare real estate experts secures financing of our projects.” 

Finding the right financing can be challenging, but at Ashton Gray, our innovative model designed to ease the entire process allows you to keep your cash without any upfront capital needed. We believe that allowing our partners to keep their financial flexibility increases the odds you’ll flourish as a doctor and practice. 

“Scaling your business is expensive and so is real estate ownership,” Blake says. “Our unique approach allows you to keep your cash and invest it back into your practice while still obtaining equity ownership in the real estate.” 

Our financing model doesn’t just help you get started with practice ownership, it allows you to plan for expansion and growth. We believe more can be accomplished as a partnership than as separate entities, and our financing model is built on that fundamental principle: when everyone can profit, real growth happens. 

Partner With Ashton Gray to Start Your Ideal Practice

Whether you’re a dentist, physical therapist, or cardiologist — true real estate ownership is now a reality, not just a myth. If you’re considering building and opening your own practice, you can talk with our experts and get the backing of our real estate, development, financial, and property management experts. 

Ready to build, invest, and grow?