10A — August 23 - September 12, 2019 — ICSC PA/NJ/DE Conference & Deal Making — Shopping Centers — M id A tlantic
Real Estate Journal
www.marej.com
ICSC PA/NJ/DE C onference & D eal M aking By Thomas Onder and Dolores Kelley, Stark & Stark Medical Leasing – Just What the Doctor Ordered for a Shopping Center H ealthcare accounts for more than 17% of US GDP (approximately with store closings and down- sizing, healthcare services traditionally located in office have overall higher credit ratings, which can provide further stability to the centers that house them. HIPAA, Anti-KickBack and Stark Law Issues
of the tenant and confirm that no immediate family member has a financial relationship with the entity. Operational Issues Medical leasing often re- quires different additional use and zoning considerations compared to other leases. For instance, will the tenant need separate utilities and a sepa- rate generator? Are there co- tenancy and/or restrictions which need to be addressed? If you have an urgent care going into an outparcel, could that break a restriction with an existing tenant? How will the medical waste be disposed? Clearly, you will not want that waste being mixed in with stan- dard waste for both health, as well as legal reasons. If you have an urgent care, have you addressed access issues for ambulances? Has parking been addressed? A phlebotomy lab may be busy during down times at the cen- ter, but where will everyone park on a busy weekend? How will your tenant address these issues? Enforcement Issues If you need to evict a medical tenant, do you know who owns the equipment and how will it be removed? There is a big dif- ference between having shelves and other abandoned property disposed of and getting rid of a MRI machine. Have you ob- tained copies of their UCCs for equipment so you know who to contact? These are few of the many issues Stark & Stark can help you cover before you can reap the benefits of having a health- care tenant. As long as medical services want to provide conve- nient healthcare, and landlords want low-risk tenants, signing a medical lease will be a win- win. Our Shopping Center and Retail Development Group focuses on helping landlords, owners, and developers boost and protect their businesses. TomOnder is a sharehold- er and Chair of the Shop- ping Center & Retail Devel- opment Group, as well as a member of the Real Estate, Litigation, and Bankruptcy & Creditors’ Rights Groups of Stark & Stark. Dolores Kelley is a share- holder andmember of Stark & Stark’s Business &Corpo- rate, Real Estate, Zoning & Land Use and Beer &Spirits Groups. Signing your Medical Lease
With a medical lease, make sure to cover your bases to comply with the Health In- surance Portability and Ac- countability Act (“HIPPA”), the Anti-Kickback statute and the Stark Law. For HIPAA, you will need to have a provision addressing access and control of the space to protect medical records. Concerning the Anti-Kickback statute, make sure you meet all the requirements for the Lease of Space Exception. For the Stark Law, you’ll first need to review the corporate structures
$3.5 trillion per year), ac- cording to a recent report f r om CNN. The industry is only expect- ed to grow, as drivers such as the Afford-
b u i l d i n g s , l i k e d e n - ta l , phys i - cal therapy, and medical imaging, are relocating or e x p a nd i n g i n t o shop - ping centers.
However, before you sign that medical lease, there are some things you should be mindful of in the negotiations. Though all leases differ, medical leases tend to vary even more. Using a cookie cutter form to create a lease will cause issues down the road. Covering all legal, opera- tional and enforcement issues in your lease will protect your business and provide for a mu- tually beneficial relationship with your new medical tenant.
Thomas Onder
Dolores Kelley
able Care Act create millions of more insured consumers and the changing demograph- ics push for easier and quicker access to healthcare. As the retail sector struggles
Currently, only about 10% of shopping centers have a healthcare tenant. These ten- ants bring in a steady flow of foot traffic for shopping centers. Medical tenants also
Shopping Center and Retail Development
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tonder@stark-stark.com • 609.219.7458 • www.Stark-Stark.com • 993 Lenox Dr., Lawrenceville, NJ 08648
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