When we hear the term “medical services,” we often think of hospitals, ambulatory surgery centers, outpatient clinics, and medical office buildings. However, with the growing demand for healthcare services due to an aging population and a global pandemic, there has been an increase in space needs within this sector.
According to a recent article by Cushman & Wakefield , this rise in demand has led to the emergence of a new concept called “medtail.” This term refers to healthcare services located in retail settings such as strip malls or shopping centers. These spaces may include vision and dental offices as well as specialty wellness services like urgent care facilities or occupational/physical therapy centers.
Other medtail users include holistic/alternative health centers, imaging service providers, veterinary and pet care facilities,and wellness/recovery service providers. The popularity of alternative medicine practices like acupuncture and naturopathy is also contributing to the growth of medtail sectors.
For landlords looking for creative ways to fill vacancies and generate foot traffic within their retail properties,moving into medtail leases can be beneficial. These types of tenants are less affected by economic cyclesand can even be recession-proof.Additionally,having these tenants on board can boost foot trafficand create new sourcesofdemandfor other retailerswithinthe property.However,it’s important for landlords tonote that healthcare providers have different needs comparedto traditional retail tenants.They should consider factors suchas load capacity requirements,waste disposal regulations,and ADA compliance when considering leasing space outto medical serviceproviders.Those who are willing totakeonthese considerations could experience multiple advantages,suchas fewer vacancies anda unique tenant mixwithintheirretailproperty.
