When we hear the term “medical services,” our minds may automatically think of hospitals, ambulatory surgery centers, outpatient clinics and medical office buildings. However, with the growing demand for healthcare services in recent years due to an aging baby boomer population and a global pandemic, there has been an increase in space needs within this sector.
This is where the concept of “medtail” comes into play. Medtail refers to healthcare services located in retail settings such as strip malls or shopping centers. This can also include clinics within retail pharmacy centers known as “shop-in-shop concepts.” While traditional medtail tenants have included vision and dental offices, there has been a rise in specialty wellness services being offered.
Some examples of other medtail users include urgent care facilities, occupational/physical therapy offices, holistic/alternative health centers and imaging service providers. There has even been growth seen in alternative medicine sectors like acupuncture or naturopathy.
For landlords looking to fill vacancies and generate foot traffic at their properties through creative means while also potentially having recession-proof tenants on board – considering medtail leases could be advantageous. However it’s important for landlords to understand that these types of tenants have different needs compared to traditional retail businesses.
Landlords should take into consideration factors such as load capacity constraints due to heavy medical equipment usage; proper disposal methods for medical waste; utility requirements specific for healthcare use; fire safety regulations; tenant improvement costs which can be higher than typical retailers’ buildout expenses; ADA compliance considerations among others when considering bringing on a medtai
