Help choosing a city for a medical practice
Hello, I will soon be opening up my own medical practice and wanted some advice on picking a city. I would prefer to buy my building, but am starting to realize this is more practical in some cities than others. This will likely be one of my biggest expenses and will directly affect my profitability.

I had always assumed I would open my practice in a suburb of Denver, and from my research on loopnet it seems like it would cost roughly $150 a sq foot while renting wound cost about $25 a sq foot.

In less desirable cities (medium size in the southeast), it appears that purchasing would cost around $100 a sq foot while renting would cost about $12 a sq foot.

Do these numbers seem correct? Could I really purchase commercial real estate in suburb of Denver for roughly $150 per square foot or is my research incorrect? This doesn't seem like too much a premium (1.5x compared to a less desirable city) while with renting the price differential is more like 2x between a desirable city and a less desirable city. Why is this?

Thank you!
[{"id": "dls6hav", "text": "Too many factors to consider. You should open your medical practice where patient demographics for your services are best. Loopnet is not the least bit accurate (nor is any software really) because the prices you see are only quotes, not bottom dollar. Lastly, most banks would be hesitant to lend because you don't have an established track record. Leasing should be the focus right now. Whichever city you choose to go into, please hire a commercial real estate broker. You will need their expertise as you head down this path. If you come to Texas, shoot me a PM.", "replies": [{"id": "dlsnavk", "text": "I agree here. Are you wanting to be a doctor or a real estate investor? Many doctors have it in their head that buying their real estate is best like how many people think it always makes sense to buy a house vs rent but that isn't always the case. You'll have tied up significant equity in the real estate that could be deployed in to your business for a greater return. Find a solid broker in your area and go through the numbers with them. You might be surprised. ", "replies": [], "depth": 2}, {"id": "dlsopx7", "text": "Great advice!", "replies": [], "depth": 2}, {"id": "dlsuh4p", "text": "I could probably save 500k before seeking a loan. Do you think that would serve as sufficent collateral for a loan? \n\nI'm in Dermatology so outside of NYC or SF, the market is pretty open. Here in SC the wait is over 6 months, I just don't want to live here. I'm just trying to calculate how much money I'm going to spend on real estate in a desirable area compared to a less desirable one.  Ie Denver vs SC, TN, or GA. I'll be booked everywhere after a year or so, but 40k a month for a mortgage is going to eat into my profit big time.", "replies": [{"id": "dlsxc3m", "text": "as far as collateral goes, depends on the amount of loan you are seeking. It's all relative will you pay more in occupancy costs in a larger market than a smaller one? No doubt. However, will your revenue be higher in a larger market, I'm pretty confident it would. It sounds like you have a genuine interest in investing in real estate, my advice would be to do so passively (for now). Starting a new practice is incredibly capital intensive, get settled and once you get traction then start looking at buying.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "dlsm55o", "text": "Suburbs is a loose definition, and it depends on the quality of building. Brand new in Denver suburbs could be $25 psf rents and $300 psf prices, or could be $15 and $200 in a lesser area or for an 80s vintage building. \n\nPlaces in Denver that you're considering? I would do Denver, all the population growth lifts all tides. ", "replies": [{"id": "dlstd8t", "text": "This is very helpful. Sounds like I can get a good price if I sacrifice location or building age. Otherwise expect to get what you pay for.\n\nI was thinking west of Denver. Lakewood, Arvada, or Englewood. I would even consider Colorado Springs. I'm in Dermatology, so I might not need great roadside visibility as long as I advertise though other methods.", "replies": [{"id": "dlt6s9m", "text": "Perfect, I would have advised similar markets for a great long term up and coming location. ", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}]