The following article was written by Lesley Sheinberg, Managing Director at NAI/Merin Hunter Codman, and published in the Palm Beach County Medical Society’s 2021 Q2 On-Call issue. View Link | View PDF
We are now a year past the pandemic outbreak. Vaccines are being rolled out, new case rates are declining, and people are starting to venture out again. If you haven’t noticed, I challenge you on your next trip to your local retail strip or larger shopping center to look for new, non-traditional retail tenants. Perhaps next to your trusty dry-cleaner or favorite specialty food store you will notice that bright and shiny new healthcare clinic?
THIS TREND IS REFERRED TO AS “MEDTAIL”, MEDICAL TENANTS FOUND IN TRADITIONALLY RETAIL CENTERS.
Retail property investors and landlords realize many medical tenants offer strong credit and desire long-term leases. They are happy to negotiate creative terms to medical users in order to fill vacant space left by traditional retailers who did not survive or downsized during lock-downs.
Creative terms aren’t just offered to medical clinics, increased retail space use is also projected for primary care, counseling, and mental health, many of which offer both telehealth and a convenient physical location with patient-friendly amenities like a great parking spot and their favorite cup of Joe.
If your practice is looking for a high-visibility location in a high-traffic center or if you are entertaining the idea of investing in a retail plaza, perhaps offering multiple medical services, I can help.
This trend is referred to as “MedTail”, medical tenants found in traditionally retail centers. Even prior to the pandemic, medical providers were starting to offer services in non-traditional office space locations and the conveniences of shorter wait and drive times made patients happy to use them. The pandemic kicked this trend into overdrive.
“COVID-19 has sped up the inevitability that preventative wellness is no longer a choice,” said Willie Hoag, principal at Tether Advisors, in their recently issued 2021 Retail Healthcare Outlook study. “The retail space is overbuilt, mediocre and redundant…It’s exciting that a new group of players is filling former retail spots while providing access and convenience to consumers.”
Feel free to contact me, Lesley Sheinberg, Managing Director, NAI/Merin Hunter Codman, 561-254-7810 or lsheinberg@mhcreal.com.
About NAI/Merin Hunter Codman NAI/Merin Hunter Codman, http://www.mhcreal.com, is one of South Florida’s leading commercial real estate firms with over three decades of experience advising clients on strategic acquisitions and dispositions and providing landlord representation, tenant representation, property management and construction management services. The firm has expertise in all commercial property sectors including office, retail, industrial, multifamily, hotels and land. NAI/Merin Hunter Codman’s client base includes some of the nation’s most prestigious institutional and private equity investors. Operating as part of the NAI Global network, NAI/Merin Hunter Codman can facilitate property transactions around the nation and the world, serving as a single point of contact for its clients’ counsel and execution. NAI/Merin Hunter Codman is headquartered in West Palm Beach, Florida with regional offices in Boca Raton, Fort Lauderdale, Palm Beach Gardens and Wellington.
