Dental Office Lease Review & Negotiation
For most dentists, the office lease is the second-largest financial commitment after the practice itself — and the one most likely to contain costly surprises. Dental leases have specialized needs: plumbing and buildout requirements, signage, patient parking, exclusivity from competing practices, and assignment rights when you sell.
Mostofi Law Group reviews and negotiates dental office leases across California. Whether you are signing your first lease, renewing, expanding, or assigning a lease as part of a practice sale, we make sure the terms protect your practice for the long term.
Landlord-drafted leases routinely include provisions that are dangerous for a dental tenant: demolition or relocation clauses, uncapped operating expense pass-throughs, broad personal guarantees, and restrictions on assignment. These are all negotiable — but only before you sign.
We also handle the lease side of practice transitions. When you buy or sell a practice, the lease must be assigned or renegotiated, and landlords often use that moment to extract concessions. We manage that negotiation so the deal stays on track.
What we handle:
- Review and negotiation of new dental office leases
- Lease renewals, extensions, and expansion rights
- Assignment and subletting provisions, including sale-related transfers
- Tenant improvement allowances and buildout obligations
- Exclusivity and permitted-use clauses
- Limiting or eliminating personal guarantees
- Demolition, relocation, and early-termination clauses
- Operating expenses, CAM charges, and rent escalation caps
- Landlord disputes and default notices
Never sign a dental office lease — or a lease assignment — without legal review. Call Mostofi Law Group at 1-866-247-9420 before you commit to a location.
Frequently Asked Questions
Why does a dental lease need special attention compared to a regular commercial lease?
Dental offices require expensive buildouts, specialized plumbing and electrical, and patient-friendly access and parking. You need a long enough term to amortize that investment, protection against competing dental tenants, and assignment rights so you can sell your practice later. A generic retail lease rarely addresses any of this.
What is a demolition or relocation clause, and why does it matter?
It lets the landlord terminate your lease or move you to a different space, often with limited notice and compensation. For a dental practice with hundreds of thousands of dollars in fixed improvements, this clause can be devastating. We negotiate it out or add strong compensation and notice protections.
Should I personally guarantee my office lease?
Landlords almost always ask, but personal guarantees are negotiable — especially for established practices. We work to limit guarantees by amount, time, or triggering events, or to replace them with a larger security deposit or good-guy guarantee.
How long should my dental office lease term be?
Long enough to justify your buildout investment and to make the practice sellable — typically 10 years including renewal options. Buyers and lenders want to see secure, long-term occupancy. A short lease with no renewal options can reduce your practice's sale value.
What happens to my lease when I sell my practice?
Most leases require landlord consent to assign the lease to the buyer, and the landlord may demand financial information, a new guarantee, or higher rent. We start this process early in the sale so the lease does not delay or derail your closing.
Can my landlord raise the rent when I renew?
It depends on your renewal option language. A well-drafted renewal sets the rent formula in advance — for example, fair market rent determined by appraisal, or a fixed percentage increase. Without clear language, you are negotiating from scratch with no leverage. We make sure renewal terms are defined before you sign the original lease.