As more medical facilities take advantage of higher-profile retail locations and become high paying rental tenants, the market is continuing to prepare for the future. Shopping centers bring about large amounts of consumer traffic per day. They provide a centralized location for all of the area’s most popular stores, and now medical facilities such as dentist offices and urgent care centers are popping up as well.
Especially during the COVID-19 pandemic, there has been a surge in medical center openings due to increased demand for their services. The medical retail industry is booming more than ever, and in return, segments of the commercial real estate market are growing along with it. Here are a few ways shopping centers are making the most out of medical retail.
The world is moving, and it’s moving quickly. It seems as though everyone got a taste of what it was like for the world to slow down during quarantine, but of course, things are quickly picking back up again. Shopping centers make it easy for consumers to get all of their shopping done in one location, making them very efficient and appealing.
Efficiency & Appeal
Many Americans are back to sneaking in errands where they can, and if a shopping center has everything they need, it is almost like one-stop shopping. This means that a person can order their groceries for pickup at the grocery store, go to get a COVID-19 test at the urgent care center while they wait, and then grab a coffee before finally picking up their groceries.
Placing medical buildings in shopping centers allows for a quick and efficient experience, which will help retain a solid customer base who will return for all of their future errands and appointments.
Real Estate Benefits
Medical centers also make great tenants because they stay for long periods at one location, they are low risk, typically have good to great credit, and they bring in consistent revenue.
Medical facilities tend to sign long-term leases, which single-handedly makes them an ideal tenant. They have consistently proven to stay at one location for extended periods compared to other industries. This is likely due to the high costs of starting a business such as a medical center, but this is good to CRE as it keeps them a low-risk client.
As previously mentioned, urgent care centers are currently thriving due to the high demand for COVID-19 testing. These centers once brought in high volumes of patients, and now the numbers are higher than ever. This is a great advantage to the commercial real estate industry, which will see more of these medical facilities opening up due to demand. Opening these medical centers now is a great investment for the future. According to CMS, the healthcare industry is projected to be worth $6 trillion by 2027.
We predict that there will be a consistent increase in the demand for urgent care centers, and they will continue to open in shopping centers across the country. They offer convenient and centralized locations for businesses and accommodate many people in their large parking lots.
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