MacRo LTD Blog

Retail Strip Centers as Local Wellness Centers

For the near future, health care real estate decisions, like the medical business, focus on economies of scale to compensate for the lower insurance payments while adjusting to the new medical measuring stick of outcome or wellness care.

Retail Strip Centers as Local Wellness Centers

Like the old real estate mantra, “location, location, location”, the new medical business model will also have a similar mantra: large, local, and logical.

How do medical practitioners and investors locate large affordable structures that can service the community and make financial sense? If you ask the medical investors/redevelopers, the likely answer is the local retail center. The facility is in place, and the community infrastructure is there. The cost savings between repurposing empty or underutilized space versus ground-up development is considerable. This approach also satisfies sustainability opportunities, and saves the patient time and travel costs because of its local presence.

The upside for retail owners can be noteworthy. First, the owners get to convert their current investment into a brand new business model that comes with the opportunity for long-term economic growth. Second is the strong possibility that instead of several small to medium size tenants, the owner could likely see one or two tenants utilize the entire center. Over time, the medical office building has become the health care facility, which is likely to morph into the Local Wellness Center, conveniently located near you.

Become a MacRo Insider

To learn more about how your real estate investments are being affected by all the upcoming health care changes, Contact Us

Leave a Reply

Your email address will not be published. Required fields are marked *