Philly.com has an article, Wills Eye foresees more retail stores as more medical providers invade the malls, highlighting the continued changes to the retail sector and it is something that commercial real estate investors need to take note of.
As more changes happen to the types of stores that are found in malls, shopping centers, and even strip malls, smart investors will be able to find excellent opportunities to invest and rehab, to meet the change in tenants.
Landlords and brokers say it’s part of a bigger trend of the wellness sector invading malls and shopping centers, as traditional anchors close amid the rise of internet shopping.
“What you’re seeing is traditional retail properties going through a detoxing, a sort of cleansing – where underperforming, homogeneous retailers are vacating and in their place enters a new breed,” said Joseph Coradino, chief executive officer at Pennsylvania Real Estate Investment Trust
The article went on to highlight a recent report from commercial real estate firm CBRE.
The report noted how the wellness sector is moving into malls, driven by aging baby boomers. Since the first quarter of 2016, 35 percent of all leased square footage in the Philadelphia metro area was signed in the categories of “Tech, Health, and Food and Beverage,” the report said.
Broker Andrew Shpigel at MSC Retail mentioned landlords like wellness tenants, such as hospital branches and eye-care shops, because they typically come with strong financial backing.
“They’re a stable use and almost considered online-proof,” he said. “The landlord’s ultimate goal is to drive traffic to their property and promote cross shopping with the other tenants, and health/wellness/medical operators do exactly that,” enabling patients to take care of multiple needs in one stop.