The medical office market continues to strengthen, with rents on the rise and demand focused heavily on newer, single-story buildings. For dentists and healthcare providers planning their next move, understanding this trend is critical.
Key Market Trends
Recent data shows that single-story medical office buildings are leading rent growth, now averaging approximately $36.70 per square foot, slightly outperforming multi-story properties. Many leases include NNN fees as well.
Why do dentists prefer street level visibility?
- Ease of access for patients
- Great signage for drive-by advertising
- Convenient free surface parking
- Retail-adjacent tenants bring traffic to the location
These properties, often located in suburban areas are ideal for dental, imaging, and specialty practices looking to maximize patient flow and convenience.
Flight to Quality Is Real
There is a clear shift toward newer construction, with nearly 40% of recent leasing activity occurring in buildings built since 2020 according to Israel Linares at CoStar Analytics.
Tenants want:
- Modern layouts
- Updated infrastructure
- Strong signage opportunities
- Patient-friendly design
This “flight to quality” is especially important for dental practices, where first impressions and efficiency directly impact case acceptance and production.
Supply vs. Demand
New construction has added inventory by converting retail space into dental spaces but our current economy and political constraints make building a challenge.
Some of the rising costs include:
- Rising construction costs (land, labor, materials)
- Specialized medical buildout requirements (power, parking, structural needs)
- Municipal constraints that limit service businesses like dental practices because they do not generate sales taxes
This means rents are expected to remain stable or continue rising, especially for well-located, high-quality spaces.
What This Means for You
If you are a dentist or healthcare provider:
- Waiting to begin your search for space may mean higher rents and fewer premium options
- Newer, highly visible spaces will continue to be in high demand and rent quickly
- Strategic site selection today can significantly impact your long-term growth and profitability
Work With an Expert Who Understands Both Sides
With more than 20 years as a dental professional, and just as many years advising dentists on buying, leasing, and investing in medical and dental properties, Sharon brings a unique perspective that most brokers simply don’t have.
I don’t just help you find space. I help you find the right space for your practice, your patients, and your long-term success. Call Sharon today at: 847-370-9131.