doctor looking out window

April 10, 2024

5 Reasons to Own + Build Your Next Medical Office Space

As a doctor, you want to give your patients the best care possible. You have a vision of your ideal practice and how that translates into better patient care, more professional recognition, and business success. However, to reach that vision, you need autonomy  — the freedom to run your practice as you see fit. When you own your medical office space, you can create an environment that reflects your vision, unlike leasing. Plus, owning your medical office space comes with a host of other benefits that benefit not just your practice, but your personal life and post-medical career life. So, let’s dive into why owning your medical office space allows you to build your ideal practice and life. 

Total Control Over Your Practice

Most leased medical offices are developed out of former retail, restaurants, or office spaces retrofitted for patient care. It compromises the design of your operations, can hinder growth, and limits overall efficiency. It can also limit the type of care you can provide. 

When you own your medical office space and build from the ground up, the building is designed to suit your practice and your needs — rather than your practice being squeezed into a generic box.

It affects your practice and the patient experience in other ways as well. Owning your space means you’re free to alter the entire environment from the clinic space parking lot to the surrounding landscape – all to suit your taste, your vision, and your patient’s needs. 

Real Investment

For many physicians, the first investment into commercial property is a launching pad for future investments and greater wealth. 

Whereas leasing a medical office space means throwing away one of your largest expenses on rent. Other than payroll, it may even be your largest overall expense. Owning your own medical office space lets you take that rent money and invest it back into your practice and your future. 

Real Stability

Commercial leases for medical office spaces are typically long-term, but that doesn’t mean they’ll last. When your lease is up, it’s time for your practice to move — if the property owner decides he no longer wants to rent for whatever reason. 

Now, maybe you hold off on investing in equipment upgrades or expanding types of care until a new lease is signed. But if your competitors down the street own their medical office spaces and decide to upgrade without worry, your practice now lags behind. 

Another way ownership provides more stability than leasing is through predictable expenses. A commercial mortgage can be set at a fixed number, while leasing can lead to unpredictable rent increases. These rent increases leave doctors feeling trapped, forcing them to decide whether to move, find cheaper rental spaces, or continue paying higher rent fees on a property where costs will continue to increase. the rising costs to hold their current location. 

Real Tax Benefits 

Owning your own custom practice allows you to take advantage of tax benefits that aren’t accessible to renters, such as depreciation deductions, which allow you to deduct a portion of the property’s cost annually on your tax returns. You can deduct interest on your commercial mortgage from your taxable income, reducing overall tax liability. 

There are a whole host of different tax deductions and benefits of owning your own commercial property, as many tax rules are built to incentivize growth in your practice and your future. 

Retirement Plan 

Investing in your own medical office spaces or real estate creates a cash windfall, as property values almost always increase in value over time. That influx of money can be used to facilitate your retirement plan. 

On the other hand, holding onto your medical space and leasing it to another physician or business can also provide you with recurring income. This recurring income can also fuel your retirement plans or the next stage of your life. 

Work With Ashton Gray to Own a New Space 

At Ashton Gray, we work nationwide with medical providers to build their ideal practices. We offer unique ways to design, build, and develop your own space to offer the highest quality of healthcare you and your patients deserve. 

Contact us today to find out how you can build for your future.