Dental Expenses | Cost Of A Dental Office Build Out

 Dental Expenses | Cost Of A Dental Office Build Out 

Have you ever wonder what the cost is to build out a dental office? 

In this blog, we will give a break down of the average cost of a build out, and also highlight some of the big ticket items. We will also use examples from our new dental office we built in Wabash Indiana back in 2020.  

The cost of building out a dental office can vary widely depending on a number of factors, including the size and location of the space, the specific features and equipment required, and the level of customization desired. Some estimates suggest that a basic dental office build-out can cost between $250,000 and $500,000, while more elaborate or specialized facilities could cost upwards of $1 million or more. The most expensive part of the dental office build out is the need for additional plumbing and electrical to the doctor and hygiene operatories.

Other factors that can impact the cost of a dental office build-out include the cost of permits, licensing, and other regulatory fees, as well as the cost of hiring contractors, architects, and other professionals to help with the design and construction process. It's also important to factor in ongoing expenses such as rent, utilities, and staffing costs when planning for the overall cost of operating a dental office.

*Some real estate experts state that dental offices lose 20% of their value after the build-out, due to the requirements that are only useful to other dentists. This limited pool potential of buyers/investors that would find value in the additional build-out costs is what hurts the dental office valuations more than anything. Below is a video taken mid build-out at our dental practice in Wabash:

For example, our dental office in Wabash has 8 operatories (4 doctor and 4 hygiene) that we have plumed and ran electrical to, and we have one denture room that has a dental chair in it, but no plumbing ran. The cost to run these lines was extremely expensive, as well as time consuming. We built this office on a slab, so if additional lines need run down the road, it will be an expensive addition. Here is a look at a few of our operatories in Wabash:

What is the cost to build out a doctor operatory?  

In general, a basic dental operatory can cost between $25,000 to $50,000. This would typically include the cost of equipment such as dental chairs, delivery systems, lighting, cabinetry, and other necessary items. However, this cost can increase significantly depending on the specific needs of the practice, such as specialized equipment or high-end finishes. Other factors that can impact the cost of building out a dental operatory include the cost of labor, permits, and licensing fees. Additionally, if the space requires any major renovations or upgrades to meet building code requirements, these costs would need to be factored in as well. For our operatories in Wabash, we purchased brand new Forest Dental Chairs, added 3 computer monitors and a TV in each op, along with specific dental supplies for each room.

 

As you can see, there are quite a few added expenses that go into building out a dental practice that most other tenants or landlords don't run into with other industries. Because of this fact, dental real estate does have to figure these addition costs into their overall building valuation and determine if it makes more sense to rent or buy the facility that you work out of. 

Comment down below if anything in this article jumped off the page at you, and please let us know what dental topics you want to learn more about moving forward!