What Does the Dallas-Fort Worth Market Boom Mean for Dentists?By Brandon Fauley, Senior Associate at Xite Realty

Introduction• Corporate relocations and significant population growth in the

Dallas-Fort Worth market has created a surge of opportunities for dentists opening practices.

• It’s a ripple effect: business growth drives growth for other businesses.

Where are the opportunities?• Houston, Dallas-Fort Worth, Austin, and San Antonio were

among the highest cities in the country for population gain, according to the U.S. Census Bureau.

• Frisco was the fourth fastest growing city in the U.S., after Georgetown and New Braunfels, Texas, and Ankeny, Iowa.

• Likewise, Allen, McKinney, Plano, and Prosper are feeling the effects.

Real estate activity in Frisco and Plano, Texas• The area near the intersection of State Highway 121 (Sam

Rayburn Tollway) and the Dallas North Tollway is experiencing rapid expansion.

• Toyota is moving its North American headquarters, which will generate approximately 4,000 jobs.

• JPMorgan Chase is consolidating its North Texas operations into a corporate office complex, which means moving 6,000 employees, according to an interview with Dallas News.

Real estate activity in Frisco and Plano, Texas (continued)• Fannie Mae is also undergoing a multi-office consolidation that

impacts about 2,000 employees, according to the Dallas Business Journal.

• The Dallas Cowboys are relocating the training facility and headquarters to The Star, which will also host retail shopping, an Omni hotel with a convention center, and Cowboys Fit (a luxury gym for players, Dallas Cowboys Cheerleaders, and members).

What does that mean for dentists?That answer is two-fold.

1. Approximately 113,000 new residents in Allen, Frisco, McKinney, Plano, and Prosper are looking to develop relationships in their communities. • That means finding a family doctor and dentist, neighborhood

grocery store, and favorite shopping spots. • Any dentist, new or established, must understand two

important factors to attract these new patients. 1. Exposure to your brand. 2. Your reputation.

Exposure to your brand• Exposure to your brand includes a highly visible location with

clear signage in a heavy traffic area, such as a retail shopping center with a popular anchor tenant.

• This is where we can help.

Your reputation• Online reviews play a vital role during the research phase of

decision making. Word-of-mouth recommendations ultimately carry the most weight when booking an appointment.

• Tip: Encourage your patients to write reviews and follow-up with customer satisfaction surveys to learn how you can improve the quality of the patients’ experience.

2. The opportunity to secure a dental office in an underserved market is now. • First, the bad news. • Even though the recession began a decade ago, the economic

collapse stalled real estate development projects and consumer spending long after.

• The DFW economy has swelled over the past five years, but the commercial real estate supply has not kept up with demand.

• This has created a landlord’s market (similar to a seller’s market for residential real estate).  

2. The opportunity to secure a dental office in an underserved market is now. (continued)• Since optimal locations for dentists are in shopping centers, dentists are

not only competing against other dentists for the same office space, but also retailers.  

• Dentists are leasing smaller spaces (less square footage) to control rent and expenses.  

• There has been a backlog of tenants waiting for prime locations to become available. 

• And, dentists are providing more specialty services to compete with corporate dental groups and new dentists who are moving from out-of-state (e.g., California and the Tri-state area). 

• Tip: Protect yourself in the letter of intent (LOI) with the landlord by listing all use of the space (dental services). That way the landlord is unable to lease an office to a competing dentist.

2. The opportunity to secure a dental office in an underserved market is now. (continued)• Now, the good news.  • Commercial real estate development has picked up speed, the

supply will adjust to meet the demand, and we can expect rental rates and availability to change.  

• There are underserved markets. We know where they are.

2. The opportunity to secure a dental office in an underserved market is now. (continued)• Residential real estate is growing and new communities are

being built right now.  • To open a dental office, Xite Realty recommends beginning your

search for an office 12 to 15 months in advance of when you want your doors to open.

• Now is a great time to take advantage of growing communities and low dental competition ratios.

Contact Brandon Fauley at Xite Realty• At Xite Realty, our dentists rely on our proprietary demographic

data that has been tailored for dentists and real estate market expertise to make the best decision for their practice locations.  

• Dr. Nam Kim, DMD of Luminous Dental Studio (located at Eldorado Parkway and Hillcrest Road in Frisco) explains it this way.  

• “When we were talking with Brandon, he was able to show us the numbers (market data) and why he was recommending each location. It was a lot easier for us to understand why we should choose this office.”For information on available dental offices

locations in North Dallas, including Allen, Frisco, McKinney, Plano, and Prosper, contact me and I’ll analyze the market to identify locations that fit the patient base you’d like to serve.