Retailers’ loss is turning out to be healthcare’s gain.
Amid store closures and the shuttering of some big-box retailers, medical and healthcare-related offices are seeing new opportunities.
Pacific Medical Buildings Senior Vice President of Development Jake Rohe, Meridian Property Co. CEO John Pollock, CBRE Senior Vice President Brian Lewitt and moderator Allen Matkins partner Fernando Villa at the Bisnow Big West Coast Healthcare event.
“Healthcare is definitely the new retail,” CBRE Senior Vice President Bryan Lewitt said at Bisnow’s Big West Coast Healthcare event on June 15. “The retail people at our company tell us about 25% of retail will go away.”
As some stores are going into crisis mode, healthcare is starting to fill the gap.
“Retail centers are really dying and withering on the vine, yet you’ve got healthcare systems moving into retail centers because there seems to be a growing demand for the accessibility,” Allen Matkins partner and panel moderator Fernando Villa said.
There are challenges that keep the model from working in some locations. Beverly Hills does not allow developers to convert retail to medicine, according to Lewitt.
The City of Beverly Hills adopted an ordinance six years ago, which went into effect on Feb. 11, 2011, putting a moratorium on developing and converting general office or retail space to medical regardless of having the necessary parking, he said.
CBRE Senior Vice President Bryan Lewitt and Pacific Medical Buildings Senior Vice President of Development Jake Rohe
Retailers love when healthcare is in the mix because all of the people coming through the building and dropping off patients will go shop, according to Pacific Medical Buildings Senior Vice President Jake Rohe.
“It’s a really logical mix,” Rohe said. “I don’t know why we didn’t think about it a while back, but it makes a lot of sense.”
It also comes in handy since it can be expensive to buy land in California and sometimes more expensive to build, according to Rohe.
“We need to find solutions to help drive down healthcare costs,” Meridian Property Co. CEO John Pollock said….