Dental Office Lease Buyout

I am currently leasing 1,000 square foot office space for $1,100 month and have 27 months left on the lease at the $1,100. Owner would like for me to leave so next door dermatologist can expand. What would be a reasonable amount to ask for to leave early? Dermatologist probably has 3-4 times the space I do and probably pays 30-50% more per square foot than I do. If I left, she would occupy 3/4 of the building. Condo space nearby would be about $225,000 with most of the build out. I have been in this space 25 years and had planned to spend 13 more years there. Thanks for any help.


You should ask for as much as you think the dermatologist is willing to pay, I know that sounds vague, I don't think there's an easy answer.

At the end of your lease you may have to leave any way so there are a number of ways to calculate a number to ask for:

1. Lets say you leave 12 months early, maybe the difference between $1,100 and your new rent plus the lost earnings on your cost to move and build out for the 12 months?

2. Maybe the cost for your move & 50% of your new build outs?

3. $50,000

Just some random thoughts.....

This post first appeared on DentalTown.

Send your questions to Tim Lott, CPA, CVA at tlott@dentalcpas.com

For more information or to sign up for our newsletter, please contact arose@dentalcpas.com

Follow us on Twitter, Facebook and Pinterest