Health Pro Realty Blog

Welcome to our blog! Here you will find the latest updates and news from the team at Health-Pro Realty Group. Check back often to learn more about the initiatives we’re taking to help medical practitioners nationwide find the perfect place to establish their business.

Contact us for more Health-Pro Realty Group news. We proudly serve medical professionals nationwide.

Create Urgency When Negotiating Medical Leases

Medical and Dental Lease Needs

For most medical and dental professionals, real estate leases are not the most pressing issue the owner has to deal with when transitioning to their own practice or a new location. After all, there are payroll concerns, patient concerns, staffing issues, equipment concerns, etc .etc. etc . In many office spaces the monthly rent could be over 10% of the practice total overhead expense. If you leave negotiations up to the landlord they will determine what the rent will be. That being said, it is important to be proactive and get the best possible deal on rent.

Medical and Dental Lease Negotiations 

Since leases all have escalation clauses, over time the rent typically will outpace the current rate of inflation.  So with a typical ten year lease when the lease ends the rent is over market.  Since doctors and dentists do not always know what the market rent should be they end up paying more than they should.  Also, the market may dictate other concessions such as free rent and tenant improvement dollars that the tenant is unaware of when negotiating. 

One of the biggest ways to insure a solid deal is reached between yourself and a landlord is to create urgency for them. Have your agent reach out to the landlord two years before the lease expires. The agent can move you and create a vacancy quickly which the landlord does not want. This creates urgency and enables the agent to get a better deal for you and your practice. Moreover, the agent knows what the deal should consist of and determine the best price per square foot for your medical space needs.

Finally, the landlord pays the agent a commission to do this so you save money while incurring no charge!  Reach out to Charles Feitel to learn more at 301 365 6940 or

Covid-19 and the Healthcare Business

Healthcare, Covid-19, and Virtual Medical Consultations

So the COVID- 19 crisis is in no way over but we might be coming out of the worst of it. Time to take a step back and look at its effects on the practice of medicine and dentistry; more specifically, the impact on the medical space needs and requirements. A year and a half ago the rage went to telehealth measures.  People were afraid to leave their homes but still faced medical and dental challenges. Talking over the internet gave the masses access to their physicians and dental professionals. As time elapsed this was not even close to a satisfactory solution. Many postponed cancer screenings which ultimately proved deadly and depression and mental health concerns reached an all time high! There is no substitute for “human contact”. A troubling blemish, a lump, change in eye or skin color all requires human contact.

Normal Healthcare Struggles

So now that healthcare is business as normal what is next? How much space do you need? Is office or retail the best setting?  Are you going to continue to be privately owned or is it time to think about the private equity model? All of these questions should be asked. While many office and retail operations have changed their model forever, healthcare for now is more status quo. It is never to early to assess your space needs. Real estate deals take a long time and careful planning can save thousands or even hundreds of thousands of dollars over a typical career. Selling your practice or considering the private equity model is a big decision that takes time.

Regardless of what you are thinking you need a “trusted advisor”. HPRG has been helping doctors and dentists since 1996 with these critical concerns. Call or reach out today to receive a FREE  evaluation of your current situation.


Charles Feitel, 301.365.6940

Are You A Doctor or Dentist? Time to Consider Selling!


As you know, timing is a very important aspect of almost everything you do in life. When deciding when to sell your dental or medical practice, timing is a critical part of the overall decision. Your financial goals, age and health all play a role when deciding how and when to retire and sell your practice. Another influencer in this decision is not within your immediate control. It is called “capital gains” tax. I am not a CPA but I am an attorney and real estate broker who helps clients buy and sell medical practices and dental practices. So please consult your individual CPA as my statements are general and may not apply specifically to your financial situation. Let me summarize more below what I am referring too.

Lets say you bought your dental office for $300,000 years ago. Over your career you have worked hard and have had much success. A few decades later your business is now worth $3,300,000. When you sell a medical practice, in general terms, you have a $3,000,000 profit. Currently, the capital gains tax on income has a range but assuming an income of over $400,000 the rate is now 20% . So on a profit of $3,000,000 the tax you would pay is $600,000. President Biden has proposed an upwards capital gains tax of 40% effective 2022! The highest in our history. That means that same profit of $3,000,000 would incur a tax of 40% or $1,200,000. In summation, you walk away with $600,000 less. Lets assume you invest that $600,000 and get 8% on your money. That’s $48,000 a year. Assuming you are 65 and live 20 more years that’s $960,000!!!!!!!!

So……….selling before the end of 2021 in the grand scheme of things could make you almost a MILLION dollars more in your lifetime. So working an additional 3-5 years could cost you almost a MILLION $$.

Call me to schedule a free consultation and learn more. 301.365.6940

Visit our website to see our listings!

I want to sell my medical or dental practice, Is now a good time?

Selling Medical and Dental Practices to Corporate Buyers

Dentists and doctors are not always sure when the right time to think about transitioning their medical or dental practice. Years ago, when a professional got close to retirement age, they would market their office for sale or bring in a partner to take over their business. But now more than ever the buyers of a medical or dental practice is going to be a corporation. The margins have changed to the point where it is difficult for an individual doctor or dentist to buy a practice. Expenses keep going up while private insurance and government reimbursements continue to decline making it very difficult to generate a profit from a medical or dental office. Corporate medical and dental is a slightly different scenario.

Often time’s corporate doctors and dentists are private equity groups who do not need to finance their purchase. When a practice does not have debt the yields are calculated differently then when they are financed. Corporate medical and dental companies see the value of the founding doctor or dentist staying with the business.  Years ago corporate buyers wanted the founding doctor or dentist to leave so they could implement their goals and objectives. Now corporate buyers want the doctor or dentist to stay around after the acquisition of the practice. Sometimes they even want them to stay on 10 years or more.

These corporate buyers can offer the dentist or doctor a sum of money up front, and a salary while they work and an equity stake in the DSO or MSO when the doctor wants to retire. Depending on the situation, a sale to a corporation may allow for a win- win for all parties concerned.  Please feel free to reach out to HPRG for a free consultation on your situation., 301 . 571.9333,

Timing is Everything: When to Sell Your Medical or Dental Practice

HPRG - Medical Office Space


Traditional wisdom says to work your whole life and sell your business when you are ready to retire. Although, many buyers of dental offices and medical offices are corporations or private equity firms. These firms have a different model than an individual buyer. Corporations place a huge emphasis on the current dentist or doctor. Ideally they want that individual to stay on as long as possible. Moreover, the office has the highest value when the practice is peaking in value. In other words, it might make sense to sell your office much earlier than you thought in order to get the most value in return for selling your practice.

Medical and Dental Practice Business Value

In many cases you can get 70-80% of the value of the business, keep working up to 10 more years and draw a hefty salary and not have to worry about the mundane headaches of running the business. Then when you are ready, cash out the remaining 20-30% of value. All of the economic experts are predicting a rise in capital gains taxes which could be significant. So getting 70-80% of the value now while taxes are lower and continuing to work without pressure may be something to consider! Not every office will meet the criteria of a corporate or private equity buyer but the right broker knows how to determine if you are a candidate for this type of sale. Size, location and type of medical practice all factor in to this determination. Even if you are remotely considering selling it makes sense to receive  a “free” consultation to see where you stand. 

Feel free to reach out the Charles Feitel at HPRG at 301 365 6940 or email him at

HPRG Expands Dental & Medical Transition & Realty Capabilities

HPRG: Health-Pro Realty Group, Logo

BETHESDA, Md. – April 27, 2021 – PRLog — HRPG (Health-Pro Realty Group) has expanded its team of commercial agents and transition experts, offering additional support to clients in the medical and dental fields, as well as commercial property owners and landlords.

With decades of experience in medical and dental practice real estate, HPRG has developed specialized expertise that helps local physicians and dentists find the right spaces for their practices as well as complete the sale or purchase of a practice. With offices in Bethesda, Maryland, and McLean, Virginia, HPRG has rapidly grown in the DMV area over the last year, adding new agents and helping close a number of major deals. Currently, HPRG is the largest healthcare brokerage firm in the DMV.

“We are excited about the future of HRPG,” HPRG President Charles Feitel said, “but we are even more excited to assist local physicians and dentists with achieving their dreams of finding the right space, owning their own practice, or selling their practice as they transition into retirement.”

When it comes to helping physicians and dentists sell their practice or purchase an existing practice, HPRG offers a unique approach that has proven successful for many satisfied clients. HPRG provides specialized expertise from its team members in the three most important aspects of the practice transition process: valuation, operations, and real estate. This approach helps practice owners be certain they are getting accurate, unbiased information as they move forward, and can make informed decisions based on the market.

Of the approximately 200,000 practicing dentists in the U.S., approximately 88% are practice owners, either as solo practitioners or partners, according to the American Dental Association. For these practice owners, the sale of their practice may be one of the most important moments in their entire professional career.  Knowing when to sell their practice is as valuable as how to sell their practice.

“Practice owners can count on unbiased, expert advice from their team in each of these pillars throughout the transition,” Feitel said.

For commercial property owners and landlords, HPRG’s connections to the medical and dental fields can help place the ideal tenant.

“Many commercial property owners are looking to add medical and dental tenants to their mix of tenants, as we’ve seen retail decline over the last year. The overarching vision for HPRG’s team is to serve both practice owners and commercial property owners, and create a win-win,” Feitel said.

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HPRG is the premier medical and dental real estate firm on the east coast. HPRG has assisted thousands of physicians, dentists, and landlords in all facets of medical and dental real estate and practice transition. If you would like more information about this topic, please contact Charles Feitel at 240.372.4867 or or visit

Charles Feitel, HPRG

Information You Need to Sell Your Dental Office

North Bethesda Dental Office

Dental Office Space Sales Requirements

It’s time to start thinking about transitioning to the next phase of your life. It’s been a good run but now let’s consider other life options to pursue. Buyers have some similar things they like to see but every case is different. When attempting a sale of your dental office and/or practice making sure you keep solid records over the years will greatly help with the speed and trust or the sale.

At a bare minimum, you will need to have the following readily available:

  • Last three years tax returns and current year to date profit and loss statement
  • Number of active patients and new monthly patient growth
  • Payor mix if insurance based practice
  • Current AR
  • Employment contracts ( if you have them)
  • Procedures done in office
  • Patient calendar schedules
  • Building lease

This represents the bare minimum information you need to have. After the buyer signs an NDA this basic information can be shared. After the buyer visits the office, they will determine if they want to see additional materials. Every buyer wants to see different information and depending on the buyer certain information is more or less important. Be flexible as a seller and willing to accommodate their requirements. Keep in mind that you have more experience then them and may not see the need for what they want to see.

“Go with the flow” and cooperate so you can get your office sold at the highest price. Your broker will supervise the process and accommodate the buyer. After the basic information has been shared it is in the buyer’s court. I recommend you require a basic letter of intent before you share information over and above the basics. Have the buyer submit the LOI and spend money with an attorney to get them “vested” in the deal. If the terms are close , agree and have their lawyer submit a PSA ( Purchase and sale agreement). Now you can safely spend money with your attorney.

In sum, the sale of a business is a process. Obviously both parties will need to be flexible, but if you adhere to some basic steps, the process will progress in a smoother fashion. To learn more contact Charles Feitel at HPRG Transitions for a “free consultation”. 301.365 .6940 or

Who is Going to Buy Your Practice?


Brokers and Medical Advisory Partners

Most brokers and advisors will tell you selling your practice is largely about the numbers. By now you have heard scenarios like 65-85% of gross sales. Sometimes CPA’s use the term EBITA or gross multipliers. All of these methods are important to making sure the office is listed for the appropriate number. After all, if the price is too low you leave money on the table and if the list price is too high it may never sell. Regardless of which valuation method is used or how the price is calculated, getting the right price is important to the transaction.

However the non-revenue aspect of the deal may be just as important. This may confuse you because you figure if you can sell for the number you want all is good! Let me give some specific examples of what I am talking about to better illustrate this picture. If you opened your office 25-35 years ago your office is more than a business. Staff and patient care is extremely important to you. Sure money is a big deal but after this long now its about more than just money. Some staff members have become family. People have worked for you for over 20 years. How will they be treated by the new ownership? Moreover, you have a “culture” in your office that everyone is used to. Will that “culture” continue with the new owner? Additionally, all dentists have a certain dentistry philosophy. Different people practice different ways. It is not all black and white and just as simple as creating a treatment plan and adhering to it.

So when you engage your broker have these discussions up front. Use the discovery method to find answers.

Questions medical professionals should ask when selling or buying a medical practice or office space

  1. Who is the ideal buyer?
  2. How long do you want to keep working?
  3. Can you give up the control?
  4. How involved and how long do you want to stick around?

Answering these simple questions now will insure you sell your business to the “right “ person! For a free consultation reach out to Charles Feitel at 240 372 4867 or View our current listings at

Lease Agreements, the terms, and Making Sure A Real Estate Pro Helps

Our clients story about their Medical Space lease agreement

We just sold a practice in Washington, DC that ultimately worked out but it was “touch and go” until the end and I would like to recant the scenario for you. Our client had a lease with a little less than three years remaining. Our client did not have an option to renew the lease. The buyers bank, as is typical, required a minimum five year lease term to finance the sale of the business. Banks do not want the buyer to be without a location so typically look for at least five years between remaining term and option periods. Even a ten year term is better for the lenders.



The buyer was hoping to do a two year extension on top of the 3 years left on the original term to satisfy their lender. Originally the landlord was fine with that scenario but changed their mind in the ninth inning of the game and many months of back and forth and big legal fees to both parties. The deal changed to a new eight year lease with a five year option. Terms were eventually agreed to but a lease needed to be generated and signed to “close” the deal. The landlord was a big institution with a long complicated lease agreement. Both parties were under severe deadlines and if the deal did not close it may not have because the lenders are now preoccupied with SBA and PPP loans making conventional loans a major hassle.

Frankly, without 25 years of real estate experience in the market the deal would not have happened. Most dental office sales have some real estate component but the business brokers do not have the experience or license to handle the real estate aspect of the transaction. When looking to sell or buy a practice get a consult on the overall real estate situation. A licensed, experienced broker will not charge for that assessment. Every deal has a practice broker, lender and lawyer, but a real estate broker HAS to be part of the equation. The deal has many parts and you want to make sure you have properly considered every part involved.

For a free consult please contact Charles Feitel at 301 365 6940 or email him at

Navigating Dental Practice Sales Post 2020

endodontics procedure


Post Pandemic Dental Practice Sales in 2021 and Beyond

Thank god 2020 is behind us, but is it? When selling your business, the banks and CPA’s like to take a snapshot of the last three years of gross revenues when doing their valuations. Maybe 2020 was on par with the prior years but probably not considering you were ordered to close for some period of time. By example, lets say 2018 was $1,000,000 (Rev), 2019 was $1,000,000 (Rev) and 2020 was $750,000 (Rev). That makes the three year average sales of $916,666 (Rev). Assuming a value of 85% of gross sales that results in a valuation of $779,166 instead of $850,000 if 2020 had been normal . In addition, banks are being very particular about 2020 operations when preparing valuations. They are looking very carefully to see that volume of sales moved in an upward direction after you opened your office. Everyone knows sales were most likely declining but if the numbers were not moving in the right direction it could make a 2021 sale difficult.

2021 Covid-19 Restrictions and Dental Practice Sales

Is 2021 a good time to position your practice to sell on the open market? The simple answer is, maybe? How long are you going to practice COVID-19 dentistry? Are you tired of having patients wait in their car until you call them to come in to your office? Are you having to wear gloves, shields and additional PPE? Remember how uncomfortable it was wearing all of that PPE last summer? First and foremost, are you healthy? Are you at risk by practicing dentistry during a pandemic? Will there be buyers out there during these trying times? The other consideration is the duration on the virus and how it will continue to impact the practice of dentistry. The vaccine process has started and optimistically will lead to an eventual end but how long?

When starting to consider the process, we can help you evaluate all of your options.

Please call Charles Feitel at 301.365.6940 or email him at to schedule your free consultation. We will help you navigate these “interesting” times!