How to choose a location for your first veterinary clinic

May 15, 2024 | 4 minute read

You’ll make many decisions along the way to owning your own clinic. One of the most, if not the most important, is the location of your clinic.

 

Some veterinarians search on their own, while others work with a specialized real estate professional who can offer valuable insight about the local market and may know about available properties.

 

There are three main things to think about when choosing a location, whether you’re working with a specialist or by yourself:

 

  1. Physical space
  2. Demographics
  3. Competition

 

Align these three elements with your goals to help ensure you choose the right place.

 

Plan your physical space

Your practice must provide enough clinical room to support, treat, and expand your client base in the future. 

 

Local veterinary real estate brokers are estimating that first-time practice owners in cities and urban communities typically start with about 1,400 to 2,000 square feet. They also stated that veterinarians generally work in 1,900 square feet or more for their first office in suburban areas. 

 

Plan for the long term, and your practice won’t outgrow its space too quickly. Here are some things to consider as you begin your search: 

 

  1. Can the location fit the type of practice you envision, and how can you maximize the space?
  2. Are you confident you’ll want the location for a long time, and is it ideal for growth?
  3. Is the location zoned for a veterinarian practice? The local municipality handles property zoning and can provide specific information on a site. Look on the website or call the local zoning office. 
  4. Does the space need significant upgrades? If so, consider your budget, and if you’re renting, find out if the landlord is willing to contribute to improvement costs.
  5. If the location is retail, does it have adequate parking, and will neighboring tenants have noise concerns or raise other issues, given your patient base?

 

When it comes to location, there are other things to keep in mind depending on what type of services you plan to offer (small animal; feline-only; urgent or emergency care; specialty and exotic, etc.). 

 

After locating a suitable space, your next step is to have an Office Design Plan completed. An office designer or architect should measure the space and produce a preliminary layout to ensure it meets your needs and vision. 

 

This drawing will show the space and how it can be configured, equipped, and accommodate growth. The layout will let you know just how much of the space can be used for clinical work, surgery, lab work, grooming, boarding, and workflow, which plays an essential role in the potential outfitting of equipment. This is all valuable information to understand before moving forward with a letter of interest, lease, or purchase.

 

Do your demographic research

Since most people choose veterinarians near their homes, it is essential to understand the makeup of the population around your potential location. 

 

Conduct some demographic research before and during your clinic search; it will help define the type of practice you create. 

 

Go through your veterinary vendor network to find market research companies that sell this data. This information will provide a snapshot of the pet clientele you will treat within your geographic area, including statistics on: 

 

  1. Median household income 
  2. Average household size 
  3. Population growth projections
  4. As of 2023, about 44.6% of American households have pet insurance according to NAPHIA. This is up from 38.5% in 2020. 
  5. Pet ownership and demographics

 

You can purchase expanded demographic reports with even greater detail. 

 

Familiarize yourself with the community around your potential space. For example, families with young kids typically correlate with the purchase of dogs. Likewise, there is a strong connection between money spent on toys, games, youth sports, and new pet ownership. 

 

Demographic research is an integral part of the process and can help make landing on your first space easier.

 

Get a look at your competition

To make a strategic choice about location, do some competitive research to determine if the site is ideal for a new vet practice. 

 

If you are a member of the American Veterinary Medical Association (AVMA), you can find many up-to-date economic studies and market research that can be helpful. 

 

Some questions you should answer before you secure space include: 

 

  1. Is there a need for a veterinarian in the area? 

  2. Are the current veterinarians overflowed with the current pet population? 

  3. Is the current competition aging out?  

  4. What percentage of the competition is corporate-owned? 

 

The market today

Today’s market offers veterinarians more opportunities with both lease and purchasing options. 

 

As supply increases, so can the incentives landlords offer future tenants in leased spaces. We have seen some increases in tenant improvement allowances, with lower escalations on leases, and in flexibility, with free rent concessions, and — most importantly — favorable pricing and terms.

 

It's time to make the decision

You've done your due diligence if you’ve thoroughly researched your potential population and competition and relied on experts to help with the location and outfitting of your space. Then, bring all the facts together to make an informed choice on where your first veterinary practice will be.

Important Disclosures and Information

Bank of America Practice Solutions is a division of Bank of America, N.A. All programs subject to credit approval and loan amounts are subject to creditworthiness. Some restrictions may apply. Bank of America may prohibit use of an account to pay off or pay down another Bank of America account.

Bank of America, Merrill, their affiliates and advisors do not provide legal, tax or accounting advice. Consult your own legal and/or tax advisors before making any financial decisions. Any informational materials provided are for your discussion or review purposes only. The content on the Center for Business Empowerment (including, without limitations, third party and any Bank of America content) is provided “as is” and carries no express or implied warranties, or promise or guaranty of success. Bank of America does not warrant or guarantee the accuracy, reliability, completeness, usefulness, non-infringement of intellectual property rights, or quality of any content, regardless of who originates that content, and disclaims the same to the extent allowable by law. All third party trademarks, service marks, trade names and logos referenced in this material are the property of their respective owners. Bank of America does not deliver and is not responsible for the products, services or performance of any third party.

 

Not all materials on the Center for Business Empowerment will be available in Spanish.

 

Certain links may direct you away from Bank of America to unaffiliated sites. Bank of America has not been involved in the preparation of the content supplied at unaffiliated sites and does not guarantee or assume any responsibility for their content. When you visit these sites, you are agreeing to all of their terms of use, including their privacy and security policies.

 

Credit cards, credit lines and loans are subject to credit approval and creditworthiness. Some restrictions may apply.

 

Merrill Lynch, Pierce, Fenner & Smith Incorporated (also referred to as “MLPF&S" or “Merrill") makes available certain investment products sponsored, managed, distributed or provided by companies that are affiliates of Bank of America Corporation (“BofA Corp."). MLPF&S is a registered broker-dealer, registered investment adviser, Member SIPC, and a wholly owned subsidiary of BofA Corp.

 

Banking products are provided by Bank of America, N.A., and affiliated banks, Members FDIC, and wholly owned subsidiaries of BofA Corp.

 

“Bank of America” and “BofA Securities” are the marketing names used by the Global Banking and Global Markets division of Bank of America Corporation. Lending, derivatives, other commercial banking activities, and trading in certain financial instruments are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Trading in securities and financial instruments, and strategic advisory, and other investment banking activities, are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, BofA Securities, Inc., which is a registered broker-dealer and Member of SIPC, and, in other jurisdictions, by locally registered entities. BofA Securities, Inc. is a registered futures commission merchant with the CFTC and a member of the NFA.

 

Investment products: