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Real Estate Journal — Spring Preview —April 27 - May 10, 2018 — 15A
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M edical /R etail By Tom Onder, Esq. and Dee Kelley, Esq., Stark & Stark 2018 Retail Forecast: Medical & Wellness Tenancies
C
hanging buying habits and demographics are fueling the demand
appointment, hit the gym, and then maybe stop by a few stores when done. M e d i c a l
same hours of operation for medical offices, which can lead to more customers stopping by
out for their spaces, which in turn benefits landlords as it secures long-term tenancy
such as medical waste, Stark Law requirements, and park- ing requirements. However, the benefits of stable tenan- cies, lengthy terms, good credit and drivers of traffic provide a real advantage to traditional tenancies. Regardless of the type of medical and/or well tenant, it is important to have legal counsel review your lease to ensure you are protected. TomOnder, Esq., Chair of the Shopping Center & Re- tail Development Practice and Dee Kelley, Esq., Chair of the Healthcare & Medi- cal Leasing Practice.
for health- care tenan- c i e s . T e n years ago, a medical and/ or wellness tenant would have been a tough sell for a center. But
a n d w e l l - ness tenan- cies can also fill in some of the “dead time” retail centers can exper i ence throughout
Medical and wellness tenancies are great op- portunities for landlords, as they offer in-person services that cannot easily be replaced by internet shopping.
centers throughout the day to head to an appointment and shop as they wait. In addition to filling out dead time, medical and well- ness tenancies often require significant amounts of build-
for the space while overall in- creasing value for any future tenants. Medical and wellness tenan- cies offer challenges such as higher TI allowances, as well as a learning curve on issues,
Tom Onder
the week. Traditional retail stores usually see a lag in customers during weekdays between 9am-5pm. However, those are also traditionally the Dee Kelley
now, these types of tenancies are becoming more and more part of the tenant mix…and in some cases an anchor tenant. Medical and wellness tenan- cies can include anything from traditional doctor’s offices, to yoga studios, to boxing gyms, to urgent care facilities to physical therapy locations. The breadth of tenancies that offer such a wide variety of services and specialties makes them ideal retail tenants. Medical and wellness tenan- cies are great opportunities for landlords, as they offer in-person services that cannot easily be replaced by internet shopping. Additionally, many gyms and healthcare services can require a larger square footage, filling up a vacancy that otherwise might be dif- ficult to place for a landlord. In particular, healthcare providers have begun seeking out more personal spaces in retail centers to stay closer to the community they intend to serve. Rather than attempting to fill out giant box locations, healthcare facilities have be- gun to notice the value in seeking out more accessible spaces that also more centrally located near where their pa- tients live. This concept also works particularly well for potential customers, as they can accomplish a “one stop shop” of sorts—go to a doctor
Shopping Center and Retail Development
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Publisher/CEO Linda Christman lchristman@marejournal.com Steve Kelley skelley@marejournal,com Kimberly Brunet kbrunet@marejournal,com
www.Stark-Stark.com • tonder@stark-stark.com • 609.219.7458 • 993 Lenox Drive, Lawrenceville, NJ 08648
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