What is an SBA 504 loan and how much down payment does it require?

An SBA 504 loan is a government-backed program that lets owner-occupant practices buy their building with about 10% down, versus 20–25% conventional.

An SBA 504 loan is a U.S. Small Business Administration program that provides long-term, fixed-rate financing for owner-occupied commercial real estate.

Its biggest advantage is the down payment: typically around 10% of the project cost, compared with 20–25% for a conventional commercial loan. On a $2,000,000 building, that can be the difference between roughly $200,000 and $400,000 in cash at closing — capital a practice can keep in the business instead. The program requires your business to occupy at least 51% of the building, which fits the owner-occupied model and even allows you to lease out the remaining space. The SBA portion carries a long fixed rate, protecting against interest rate swings. There are fees and early prepayment penalties to weigh, so the right comparison is total cost over how long you plan to hold the building.

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What are my options if I need to get out of my lease early?

Depending on your lease, you may be able to sublease, assign the lease, or negotiate an early termination — largely set by what you negotiated up front.

Can I open a medical or dental practice in any commercial space?

No. Zoning determines whether a clinical use is allowed. Retail and industrial spaces often require a special use permit or variance for medical use.

Will I be personally liable if my practice can't pay the lease?

If you sign a personal guaranty, yes — your personal assets are at risk. But it can often be limited via a good-guy clause, burn-off, or dollar cap.

Can my landlord rent nearby space to a competitor?

Not if you negotiate an exclusivity clause. It stops the landlord from leasing other space in the property to competing uses — a key protection.

Why do I pay rent on more square footage than I actually use?

Rent is charged on rentable square footage, which adds a share of common areas. The load factor can make two identical rents cost very different amounts.

What are CAM charges and how do NNN leases work?

In an NNN lease, you pay base rent plus your share of property taxes, insurance, and common area maintenance (CAM), raising your true occupancy cost.

What is a tenant improvement allowance and how much can I negotiate?

A tenant improvement allowance is money the landlord contributes toward customizing your space. Amounts vary by term, market, and use.

What should multi-location operators consider before expanding into West Loop?

Multi-location operators should evaluate West Loop within a broader portfolio strategy, not as a standalone expansion decision.

How does tenant representation protect operators leasing space in West Loop?

Tenant representation helps operators negotiate lease terms that reduce risk, control costs, and preserve long-term flexibility in West Loop.

Do you assist with property purchases?

Yes. Buyer representation includes acquisition analysis, lease-vs-buy evaluation, and negotiation.

What is Flex Advisory?

Flex Advisory supports businesses needing adaptable footprints or uncertain growth trajectories.

Can you compare multiple markets or suburbs?

Yes. We provide side-by-side market comparisons including rent, incentives, and operational fit.

How does site selection work?

We evaluate demographics, zoning, visibility, access, competition, and long-term growth to identify the best locations.

Do you handle lease negotiations directly?

Yes. We negotiate directly with landlords and their brokers to secure favorable terms and reduce long-term risk.

What does tenant representation include?

Site selection, market analysis, lease negotiations, financial modeling, and long-term occupancy planning.

Is this advisory suitable for new practices or only established dentists?

We support first-time practice owners selecting their initial location, also established dentists relocating, expanding, or renegotiating existing leases.

Can you help with lease negotiations and buildout risk?

We structure and negotiate lease terms to protect dentists from excessive buildout costs, unfavorable renewal clauses, and exit limitations.

How is dental real estate different from standard office space?

Dental spaces require specialized infrastructure—plumbing, power, HVAC, ceiling heights, and medical-use compliance.

When should a dentist engage real estate advisory?

Ideally before touring spaces or discussing lease terms, when options and leverage are highest.

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What to expect:

Tenant & owner occupied representation
Healthcare & service-focused
Chicago & suburban markets

What is an SBA 504 loan and how much down payment does it require?

Related FAQ terms

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