Finding Space for Your Private Practice: Renting vs. Buying

As your private practice grows, one of the biggest business decisions you'll face is whether to rent or buy office space. Both options have benefits and challenges, and choosing the right path depends on your goals, size, and growth plan.

In Episode 6 of The Right Tack, Paul Jonas sits down with Nils Snyder, a Twin Cities commercial real estate expert, to unpack the market trends and practical realities of renting versus owning office space.

Here are a few key takeaways from the conversation:

The Office Market Has Changed Since COVID

Post-COVID, many office buildings are struggling while others remain strong. For tenants, that means there are deals to be had, but it also requires careful evaluation of each property.

Flexibility vs. Responsibility

Renting often provides more flexibility, especially if your practice is still growing. Buying can build wealth over time, but it also comes with added responsibilities—like maintenance, repairs, and even snow shoveling if you own the building.

Use a Commercial Broker

Nils emphasized that practice owners should work with a commercial real estate broker, not a residential one, since the process, contracts, and market dynamics are entirely different.

Know Your Growth Plan

The decision isn't just about square footage—it's about vision. Are you staying small and steady, or do you want to expand into a multi-provider practice? Your growth plan should drive your real estate plan.

Nils also shared the famous Ray Kroc story, reminding us that McDonald's wasn't built just on hamburgers; it was built on real estate! For practice owners, that means real estate can be a powerful tool for wealth and stability—if done at the right time and in the right way.

This is Part 2 of a two-episode series on finding space for your practice. For Part 1, covering virtual offices and co-working spaces, check out Episode 5.