With healthcare being one of the fastest growing parts of our national economy, it should come as no surprise that the medical retail space to house healthcare services is also growing. And, most experts don’t think it will be slowing down anytime soon.
Why is the medical retail market so healthy?
Even before this year’s pandemic began, there was a noticeable uptick in medical retail leases. One of the primary factors for this growth includes a need to free up space in already crowded hospitals. By moving some services outside of the hospital campus, building costs are cheaper, regulations are fewer, and the convenience and accessibility for patients increases.
In order for medical retail space to continue to experience significant growth, there will need to be advantages for both the tenant and the property owner. Let’s take a look at some of both to provide a better picture for why this market is looking so robust.
Advantages for the tenant
Most companies that provide medical services have two main goals:
- Provide top quality services that are both convenient and affordable for patients.
- Manage underlying costs so that the provision of these services is also profitable for the company.
Medical office suites or medical retail spaces that are not in a hospital enable them to achieve these goals because:
- Hospitals become less crowded. Valuable space in hospitals is freed up when some services are moved to outside spaces. This enables providers to give higher quality care in both settings.
- Medical retail spaces are usually cheaper. As you might expect, hospitals are heavily regulated by governmental bodies. Because of this, construction of hospital spaces is typically more expensive. Tenants can often save money by leasing high quality medical retail space outside of the hospital.
- Outside spaces are typically more accessible. Usually, off-site clinics and medical office suites are more easily accessed by patients. Reasons for this include smaller parking lots with parking available closer to the building and smaller buildings in general, making it easier for patients to navigate.
Advantages for owners or developers
As you can see from the above, medical retail space is beneficial for both tenants and their customers. Here are a few reasons why this type of commercial real estate is also appealing to property owners and developers:
- The medical field is more recession-proof. When other parts of the economy take a dive, the medical market typically stays constant or even increases. This is because healthcare is always in demand. What this means for landlords is more stable tenants.
- Tenants are backed by larger corporations. Yes, some medical retail spaces or medical office suites are occupied by individual providers. However, many others are part of a larger company or group of complementary services. This also leads to more stable leases.
- Longer term leases. Medical retail providers are less likely than some businesses to be here today and gone tomorrow. Instead, they foster long-term relationships with their patients and seek to fill an important role in the community. As such, they’re often more willing to sign leases with longer terms – a definite plus for landowners seeking to minimize lease turnover.
Dallas medical retail space
The Dallas, TX metroplex is teeming with medical universities, hospitals, and clinics. If you are looking for medical retail space in this area, one of our brokers will be happy to help you find the ideal location for you. We have multiple properties that have easy access to local hospitals and Dallas’ growing medical district. Contact us today to schedule a tour of our prime Dallas commercial properties!