Location Selection for Optometric Practices: What to Consider

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:

• How many people live within 5 miles? 10 miles?
• Is the population growing, stable, or declining?
• What is the daytime population (workers) versus residential population?

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:

• U.S. Census Bureau
• Local economic development agencies
• Commercial real estate brokers
• Demographics providers like ESRI

Age Distribution

Different age groups have different eye care needs:

Different age groups have different eye care needs:

Age Group	Eye Care Pattern	Revenue Potential
Under 18	Annual exams, myopia management	Moderate (dependent on parents)
18-40	Every 1-2 years, contacts heavy	High for contacts and fashion frames
40-55	Annual, progressive lenses begin	High for progressives
55+	Annual or more, medical issues	High for medical services and multiple pairs

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

Income Levels

Income affects:

• Insurance mix (private pay vs. VSP vs. Medicaid)
• Frame price points patients will consider
• Willingness to pay for premium lens options
• Demand for specialty services

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:

• What percentage have vision insurance vs. medical only?
• Which vision plans dominate (VSP, EyeMed, other)?
• What is the employer landscape (large employers with benefits vs. many small businesses)?

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:

• All optometry practices within 5 miles
• Ophthalmology practices
• Optical retail (LensCrafters, Pearle, Costco, Walmart)
• Online competitors’ market share

Evaluating Competitor Strength

Not all competition is equal. Assess:

Established private practices:

• How long have they been there?
• What is their reputation?
• Are they accepting new patients?
• What services do they emphasize?

Retail optical:

• What is their price positioning?
• How is their service quality?
• Are they focused on speed or relationships?

Corporate chains:

• How aggressive is their marketing?
• What is their patient experience?
• Are they expanding or contracting?

Finding the Gap

Look for underserved needs:

• Are existing practices accepting new patients promptly?
• Is there a wait time problem in the area?
• Are certain services (pediatric, specialty contacts, medical) underrepresented?
• Is there a price tier (premium or value) without good options?

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:

• Located on or near a main road
• Visible signage from traffic flow
• Not hidden behind other buildings
• Easy to identify from the street

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

Traffic Patterns

Consider both vehicle and foot traffic:

• Is this a commuter route?
• Is there lunchtime foot traffic?
• What is the traffic flow at different times?
• Is traffic primarily passing through or stopping nearby?

Parking

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

• Is parking adequate and convenient?
• Is it free or paid?
• Is it shared with high-turnover uses (restaurants) that compete for spots?
• Can patients exit safely with dilated pupils?

Accessibility

Consider patient accessibility:

• ADA compliance (required)
• Proximity to public transit (if relevant in your market)
• Ease of navigation for elderly patients
• Stroller/wheelchair accessibility

Co-tenancy

Who are your neighbors? Beneficial neighbors include:

• Primary care physicians
• Pediatricians
• Pharmacies
• General retail that draws your demographic

Challenging neighbors:

• Direct competitors
• High-noise businesses
• Uses that make parking difficult

Physical Space Requirements

Optometry practices have specific space needs.

Minimum Space Guidelines

Minimum Space Guidelines

Practice Model	Minimum Size	Comfortable Size
Solo OD, minimal optical	1,200 sq ft	1,500 sq ft
Solo OD, full optical	1,500 sq ft	2,000 sq ft
Two OD practice	2,200 sq ft	2,800 sq ft
Multi-OD group practice	3,000+ sq ft	4,000+ sq ft

Essential Areas

Reception and waiting:

• 150-250 square feet minimum
• Comfortable seating for 6-10 patients
• Clear sight lines to front desk

Exam lanes:

• 100-120 square feet per lane
• Minimum 20 feet length (10 feet with mirrors)
• Proper electrical and data infrastructure

Pre-testing area:

• 100-150 square feet
• Space for auto-refractor, tonometer, visual fields
• Patient flow consideration

Optical dispensary:

• 200-400 square feet minimum
• Good lighting for frame selection
• Mirror placement
• Seating for fittings

Contact lens area:

• Training space
• Inventory storage
• Sink access

Office/administrative:

• Provider office
• Staff break area
• Storage
• Server/IT room

Infrastructure Requirements

Verify before signing a lease:

• Electrical capacity for equipment
• Plumbing for contact lens area
• HVAC adequacy
• Data/internet infrastructure
• Soundproofing potential (exam room privacy)

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:

• Total monthly occupancy cost (rent + NNN + utilities)
• Revenue needed to cover occupancy at 10-12% of revenue target
• Patient volume required to generate that revenue

Example:

• 1,800 sq ft at $22/sq ft NNN = $39,600 annual rent
• NNN adds $7/sq ft = $12,600 annually
• Total occupancy: $52,200/year or $4,350/month
• At 10% of revenue, requires $522,000 annual revenue to be sustainable

Growth scenarios:

• Can this location support your year-3 and year-5 goals?
• Is there expansion potential?
• What happens if a competitor opens nearby?

Negotiation Strategies

Landlords negotiate, especially for good tenants:

Leverage points:

• Healthcare tenants are stable and desirable
• Longer lease terms earn better rates
• Multiple location potential (if you might grow)
• Credit strength and business plan

What to negotiate:

• Free rent period (1-3 months for build-out)
• Tenant improvement allowance
• Capped NNN increases
• First right of refusal on adjacent space
• Signage rights
• Parking allocation

Location Types: Pros and Cons

Medical Office Buildings

Pros:

• Built-in referral relationships
• Professional environment
• Shared services possible
• Patients already coming for healthcare

Cons:

• Often limited optical visibility
• Strict use restrictions
• Higher rents
• Less retail foot traffic

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

Retail Strip Centers

Pros:

• High visibility
• Foot traffic
• Parking usually adequate
• Co-tenancy with complementary retail

Cons:

• Less professional image (perception)
• Turnover in neighboring tenants
• Signage restrictions may apply
• Evening/weekend hours expected

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

Standalone Buildings

Pros:

• Maximum control
• Prominent signage
• Expansion flexibility
• Build practice identity

Cons:

• Higher cost (often purchase required)
• All maintenance responsibility
• More complex financing
• May be overbuilt for early-stage practice

Best for: Established practices or practitioners with significant capital.

Professional Office Parks

Pros:

• Professional environment
• Often good parking
• Reasonable rents
• Stable tenant mix

Cons:

• Lower visibility
• Limited walk-in potential
• May lack retail energy
• Location may be off main roads

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:

• Determine your target practice model
• Calculate required space
• Identify must-have features
• Set maximum rent budget

Step 2: Market Survey

Work with a commercial real estate broker to:

• Identify available properties meeting basic criteria
• Understand market rents
• Learn about upcoming availabilities
• Get landlord reputation information

Step 3: Short List Evaluation

For promising properties:

• Visit at different times of day
• Observe traffic and parking patterns
• Research neighbors
• Verify infrastructure feasibility

Step 4: Financial Analysis

For top candidates:

• Model complete occupancy costs
• Project revenue requirements
• Compare across options
• Identify negotiation priorities

Step 5: Negotiate and Commit

With your preferred location:

• Engage attorney for lease review
• Negotiate key terms
• Secure appropriate tenant improvements
• Plan build-out timeline

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 cost-effective 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.

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

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Last Updated: January 2026

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