Location shapes everything about your optometry practice. The right site brings steady patient flow, supports premium pricing, and makes growth easier. The wrong site means constant marketing struggle and compromised economics. This guide provides a framework for evaluating potential locations so you make this critical decision with confidence.

For the complete picture on launching your practice, see our guide on starting an optometric practice.

The Location Decision Framework

Every potential location should be evaluated across five dimensions:

  1. Demographics: Who lives and works nearby?
  2. Competition: What other options do patients have?
  3. Visibility and Access: Can patients find and reach you easily?
  4. Physical Space: Does the space work for optometry?
  5. Financial Terms: Do the numbers make sense?

No location scores perfectly on all dimensions. Your job is finding the best overall fit for your practice model and goals.

Demographics: Understanding Your Patient Base

Demographics determine your ceiling. Even perfect execution cannot overcome a location without enough potential patients.

Population Density and Growth

Key questions:

Rule of thumb: One OD can typically support a practice with 15,000-25,000 people in the primary service area. More competition requires larger populations.

Data sources:

Age Distribution

Different age groups have different eye care needs:

Age GroupEye Care PatternRevenue Potential
Under 18Annual exams, myopia managementModerate (dependent on parents)
18-40Every 1-2 years, contacts heavyHigh for contacts and fashion frames
40-55Annual, progressive lenses beginHigh for progressives
55+Annual or more, medical issuesHigh for medical services and multiple pairs

A location near retirement communities offers different opportunities than one near a university campus.

Income Levels

Income affects:

Data point: Median household income should generally be at least $50,000 for a full-service private practice model. Lower income areas can work with different service and pricing approaches.

Insurance Landscape

Understand the dominant insurance patterns:

Matching your insurance participation to local patterns affects patient access.

Competition Analysis

Understanding existing options helps you position effectively.

Mapping Competitors

Create a map showing:

Evaluating Competitor Strength

Not all competition is equal. Assess:

Established private practices:

Retail optical:

Corporate chains:

Finding the Gap

Look for underserved needs:

The best locations have enough demand for another practice, not markets where existing providers struggle to fill schedules.

Visibility and Access

Patients cannot visit if they cannot find you or get there conveniently.

Street Visibility

Ideal characteristics:

Reality: Prime visibility costs more. Balance visibility value against lease costs.

Traffic Patterns

Consider both vehicle and foot traffic:

Parking

Optometry patients often bring family members and leave with dilated eyes or new glasses:

Accessibility

Consider patient accessibility:

Co-tenancy

Who are your neighbors? Beneficial neighbors include:

Challenging neighbors:

Physical Space Requirements

Optometry practices have specific space needs.

Minimum Space Guidelines

Practice ModelMinimum SizeComfortable Size
Solo OD, minimal optical1,200 sq ft1,500 sq ft
Solo OD, full optical1,500 sq ft2,000 sq ft
Two OD practice2,200 sq ft2,800 sq ft
Multi-OD group practice3,000+ sq ft4,000+ sq ft

Essential Areas

Reception and waiting:

Exam lanes:

Pre-testing area:

Optical dispensary:

Contact lens area:

Office/administrative:

Infrastructure Requirements

Verify before signing a lease:

Build-Out Considerations

Most spaces require modification:

Typical optometry build-out costs: $50-$150 per square foot depending on condition and extent of work.

Landlord contributions: Many landlords provide tenant improvement allowances (TI). Typical range is $20-$60 per square foot for new leases.

Timeline: Build-out typically takes 8-16 weeks. Plan accordingly.

Lease Terms and Financial Analysis

The lease is a major financial commitment. Understand the terms fully.

Key Lease Terms

Base rent: Monthly cost per square foot. Compare to market rates for similar spaces.

NNN (Triple Net): Additional charges for property taxes, insurance, and common area maintenance. Can add 20-40% to base rent.

Annual escalations: Typical increases are 2-4% annually. Lock in reasonable escalations.

Term length: 3-5 years for new practices. Longer terms may secure better rates but reduce flexibility.

Personal guarantee: Expect landlords to require personal guarantee for new businesses. Try to negotiate a cap or burn-off provision.

Assignment/sublease rights: Protect your ability to sell the practice or exit the lease if needed.

Financial Modeling

Before committing, model the location’s economics:

Break-even analysis:

Example:

Growth scenarios:

Negotiation Strategies

Landlords negotiate, especially for good tenants:

Leverage points:

What to negotiate:

Location Types: Pros and Cons

Medical Office Buildings

Pros:

Cons:

Best for: Practices emphasizing medical optometry or ophthalmology referral relationships.

Retail Strip Centers

Pros:

Cons:

Best for: Full-service practices with strong optical focus.

Standalone Buildings

Pros:

Cons:

Best for: Established practices or practitioners with significant capital.

Professional Office Parks

Pros:

Cons:

Best for: Practices relying primarily on referrals and appointments rather than walk-ins.

The Decision Process

Step 1: Define Requirements

Before looking at specific properties:

Step 2: Market Survey

Work with a commercial real estate broker to:

Step 3: Short List Evaluation

For promising properties:

Step 4: Financial Analysis

For top candidates:

Step 5: Negotiate and Commit

With your preferred location:

Common Mistakes to Avoid

Overbuilding: Do not lease 3,000 square feet hoping to grow into it. The carry cost damages early economics.

Ignoring competition trends: A location without competition today may have a Warby Parker opening next year. Understand the market direction.

Underestimating build-out: Optometry build-outs are specialized. Get contractor quotes before committing to a space.

Focusing only on rent: A cheap lease in a bad location is not a bargain. Total economics include marketing cost to overcome poor visibility.

Personal preference over business logic: The charming Victorian building downtown may not be where your target patients shop.

Next Steps

Location is one component of launching a successful practice. For guidance on equipment, staffing, compliance, and operations, review our comprehensive Starting an Optometric Practice 101 guide.

Building your practice team? Our guide on staffing your new optometry practice covers roles, hiring, and training.

Last Updated: January 2026

Sources: SBA - Pick Your Business Location, Review of Optometric Business

Need help managing patient calls as you launch? Schedule a consultation to learn how MyBCAT supports new optometry practices.