One of the trending topics on LinkedIn today is ‘Medtail’ comes to the mall. The discussion is around a New York Times article by Jane Margolies, To Fill Empty Retail Space, Landlords Tap Doctors and Dentists. The article highlights how a growing number of retail tenants are medical based companies.
“Health care providers are increasingly choosing former stores for their offices and clinics, in a trend known as medtail — a reflection of the medical industry’s migration to retail properties.
The pandemic has accelerated their embrace of retail space. Taking advantage of depressed rents, medical providers are opening facilities in storefronts on city streets and moving into malls and shopping centers in suburban and rural areas, sometimes occupying the hulking shells vacated by big-box and department stores.
In the past, landlords might not have welcomed such tenants — some just didn’t want sick people around their properties, experts say — but they are increasingly seeking them out to fill vacancies and help generate foot traffic that may benefit the other occupants.”
Many of our readers and local real estate investors won’t be shocked to see this trend.
As I’ve written before value add retail real estate investors should be embracing medical as part of the changes retail real estate and local malls are seeing. In many ways, I see this as just the start of a growing trend.
For older strip mall and suburban center owners, why not look at how your property could potentially benefit from adopting a changing tenant mix?
For many owners adding local restaurants, yoga clinics, dance or martial art studios, and co-working spaces would likely outweigh adding a vape or CBD shop.