Frequently Asked Questions

We help healthcare practice owners evaluate the financial and strategic implications of real estate decisions - relocating, expanding, or investing in new facilities. Our services include financial modeling, lease vs. purchase comparisons, and local market analysis to support your long-term growth and capital efficiency.

We provide independent advisory and analysis, not brokerage. We give you objective, data-driven guidance before you engage brokers or lenders, and we don't represent landlords — so the recommendations are built around your decision, not a transaction.

Our fee is flat and set by the scope of work — it isn't tied to the size of your project or whether you lease, buy, or build. Because our pay doesn't depend on the outcome, the analysis is built around what's right for your practice.

We work exclusively with healthcare providers - physicians, dentists, specialists, and multi-provider groups - considering relocation, expansion, or facility upgrades. This includes solo practitioners to large multi-site organizations.

It's never too early to plan. We recommend engaging us 0-36 months before your intended move . Early engagement allows for comprehensive financial strategy development and avoids rushed decisions.

Not at all. Most clients come to us before looking. We help you define your financial needs, then model the costs and risks of leasing, buying, or building options. We can refer trusted professionals once your strategy is clear.

No. We don't perform site selection or direct project management. However, we help clarify financial and operational criteria for your site search and project scope. We provide a roadmap of professionals to engage, helping you avoid costly missteps.

Current economic factors like interest rates and inflation significantly influence real estate costs and financing. We model these impacts within your local market to show how they affect your occupancy costs, debt service, and profitability, ensuring a sound investment.

Healthcare construction involves unique financial challenges, including higher costs for regulatory compliance, specialized infrastructure for medical equipment, and specific HVAC needs. We provide detailed cost-benefit analyses and budgeting support to minimize unexpected expenses in your local project.

The shift to outpatient care and telehealth impacts real estate by influencing space requirements and patient flow. We help you evaluate the financial viability of smaller clinics or adapting existing spaces to support hybrid care models, ensuring your investment remains relevant and profitable within your local market.

We go beyond simple rent vs. mortgage. Our financial modeling calculates the comprehensive Return on Investment (ROI) , including equity accumulation, local market appreciation, tax benefits (like depreciation), EBITDA impact, and long-term exit value. You'll see the full financial picture.

We help you assess various financing options, including traditional bank loans, SBA loans, and specialty healthcare lenders. We analyze financial terms and debt capacity to help you secure the most advantageous financing structure for your project in your local market.

We'll typically ask for practice financial statements (P&L, balance sheets), current facility costs, and your long-term practice goals. We'll guide you through the process to ensure we have the necessary data for an accurate financial model.

We offer fixed-fee consulting engagements based on project scope — not percentages or hourly rates. Because the fee is set up front and isn't tied to your transaction, our advice stays aligned with your interests.

Yes. We offer a complimentary introductory call . It's a no-pressure conversation to learn your goals and determine if NextSite is the right fit to provide the financial clarity you need.

Occupancy cost — your rent or building expense as a share of collections — is one of the clearest signals of whether your facility fits your practice. Most dental and medical practices target a range of roughly 5% to 8% of collections. Above that range, occupancy cost reduces profitability and can lower the practice's value at sale. Below it, the space may be too small or under-built for the practice's volume, which can constrain capacity and limit growth. We benchmark your occupancy cost against your local market so you know where you stand.

For most practices, total occupancy cost — rent plus taxes, insurance, and maintenance — should fall within about 5% to 8% of collections. Rent alone usually sits below the top of that range, with the remainder made up of the other facility expenses. The right target depends on your specialty, your market, and whether you lease or own, which is part of what our modeling clarifies.

Real return on owning a building is more than rent versus a mortgage payment. It combines the equity you build as the loan is paid down, any appreciation in the building's value, tax benefits such as depreciation, and the rent you no longer pay — measured against your total cost of ownership over a defined holding period. We model all of these together so the comparison reflects the full picture, not just the monthly payment.

Earlier than most owners expect. We recommend starting 0 to 36 months before an intended move. Design, permitting, financing, and a healthcare buildout each take longer than a standard office, and starting early preserves your negotiating leverage instead of forcing decisions under a lease deadline.

It depends heavily on the tenant and the lease. Based on NextSite's 2026 transaction data, a large national-DSO building with a long lease can price near 5.25% to 6%, while an independent, owner-occupied practice with a personal guarantee and a shorter term can range from roughly 6.75% up to 11%. A property's value should always be confirmed by a qualified appraiser; these ranges are planning-level context, not a specific valuation.

EBITDA — earnings before interest, taxes, depreciation, and amortization — is the figure buyers use to value a practice, and your facility cost flows directly into it. High occupancy cost lowers EBITDA dollar-for-dollar, and because practices sell on a multiple of EBITDA, that reduction can affect sale value by more than the cost itself. We show how a facility decision ripples into both practice profitability and value.

Owners can generally depreciate the building over time, and a cost segregation study may accelerate part of those deductions into earlier years. These benefits can be meaningful, but what actually applies to your situation is determined by your CPA, not by general guidance. We model the real estate side of the decision and coordinate with your tax advisor, who confirms the tax treatment.

A broker is typically paid a commission tied to a completed transaction. Our fee is flat and set by the scope of work — it isn't tied to the size of your project or whether you lease, buy, or build. We provide independent analysis and advisory before and alongside the brokers, CPAs, and lenders you work with, focused on the decision rather than the deal.

Because the standard benchmarks exclude them. The most cited institutional data sources cover buildings 7,500 SF and larger or apply transaction minimums above $2.5 million — thresholds that filter out most single-tenant dental and physician buildings, which commonly trade between $400,000 and $2.2 million. Appraisers then default to retail or large medical-office comparables that don't reflect this asset class.