Dental Commercial Lease Review Issues
October 19, 2012 | By Vela Wood
Vela | Wood has been lucky to have helped a number of local dentists not only form their legal entity, but also assist them in their business development and commercial real estate needs. We find that our dental clients are making a substantial bet on themselves, and their future career, and we love to work with people so motivated to make their young businesses a success.
Often, our dental clients will want us to review their commercial leases to make sure they are protected when entering a long term lease. Because these dental practices are offering medical assistance, there are a number of special considerations that need to be addressed within the lease. Just a few things to watch out specific to dental leases are:
- any potential Stark or Anti-Kickback law issues;
- ensuring protection of patient files under HIPAA;
- compliance with ADA requirements;
- making sure medical waste considerations are specifically set out;
- exclusivity and option period negotiations;
- assignment and subletting clauses in the event the Dentist decides to sell their practice;
- personal guaranty limitations; and
- build-out and landlord concessions issues.
Commercial leases are never “standard,” and a thorough review of a proposed lease is never going to be “quick and dirty.” We understand that our clients are considering a financial investment in themselves and we want to be sure they are as protected as much as possible in negotiating the terms of their lease agreement.