As shopping centers continue to evolve their tenant mix with increased forays into dining, entertainment, and services, healthcare is one category with potential to provide distinct benefits to the customer. Historically, many are already used to seeing services like optometry or dentistry in shopping centers. LensCrafters and Pearle Vision are two nationally recognized chains that are often found in shopping centers. Monthly visitation on a year-over-year basis has been largely positive.
The variety of healthcare services to be found in shopping centers has been increasing. Per CoStar, while mall leases for clothing retail declined 10% between 2017-2019, medical clinics at malls rose 60% in that same timeframe. Some of the benefits of medtail include higher credit ratings, longer leases, revenue generation, and the likelihood that the tenant will stay given some of the higher upfront costs of setting up a medical facility.
In a recent McKinsey report, the advent of Covid-19 underscored the need for increasing hospital capacity. One health system that has seen increased visits year-over-year is Kaiser Permanente, although March visits were down year-over-year.
Ambulatory Care is one possible solution to fill that paucity. With increased technology and innovation, procedures ranging from knee replacements to tonsillectomies can be performed in an outpatient setting. Other advantages include faster access, shorter stays, and lower costs for patients. EAMC-Lanier Ambulatory Surgery Center in Valley, Alabama is one such example of an outpatient location. Services include “breast surgery, abdominal surgery, hernia surgery, gallbladder surgery, colonoscopy, and rotator cuff procedures. Minimally invasive surgical techniques are preferred when possible, and the Center offers laparoscopic surgery as well as arthroscopic surgery.” Visitation is up 8% year-over-two-year and up 15% year-over-year.
Another development within healthcare is in-home medical service. Brands like Concierge MD are in 8 states (Arizona, California, Colorado, Connecticut, DC, Florida, Georgia, Hawaii) and offer services like medical care and assessments, IV therapy, vitamin injections, and hair-loss therapy. While one does need to pay a premium for these services, a more in-depth, holistic approach and more time with the doctor allows for more personalized and preventative care. Baseline tests are conducted and are then measured at regular intervals to be on the alert for any shifts, to which the doctors can respond accordingly. As demand for these types of services grow, patients who prefer in-office consultations or care will be pleased to know that a brick-and-mortar location will be opening in the near future in Southern California.
Also offering longevity services is Next Health, which recently announced that they hit a milestone of exceeding the “50-territories-sold” mark this month. Next Health shared its goal “to become the largest health optimization and longevity company by the close of 2027, with 150+ open locations servicing 600,000+ customers.” With its focus on preventative care and a tailored approach, it is at the forefront of evolving care for customers. Current locations include what one might consider jet-setting cities like LA, NY, and Maui with plans for openings in Miami, Montecito, Dubai, and Australia.
Plans are underway across the nation to repurpose malls in their entirety. In Alexandria, Virginia Inova Health System has signed a 99-year lease on the premises of the former Landmark Mall. The new hospital will include an emergency room, patient rooms, an oncology department, and medical office buildings. Meanwhile, on the other side of the country, UCLA announced earlier this year that it would be taking over the former Westside Pavilion. This location will be transforming from “Clueless” (the exterior of Westside Pavilion was used for that classic movie) to “Genius” as it will be the new home of UCLA’s Research Park, housing both the California Institute for Immunology and Immunotherapy at UCLA and the UCLA Center for Quantum Science and Engineering.
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