The location of a medical facility has always been an important factor in medical real estate. Naturally, physicians need to work in a centralized area where the majority of their patient base can reach them. And they need to consider location factors such as hard infrastructure and public transportation. But now, with the continued expansion of outpatient facilities and an emphasis on suburban and rural communities, choosing the right location is more important than ever.
Medtail and Urgent Care Facilities
The recent economic downturn has spotlighted medical clinics or urgent care centers as prime options to fill vacant retail spaces. Landlords are looking for tenants that present less risk. And as medtail facilities increase, medical groups of all types will need to ensure their locations can compete.
Medtail facilities have actually been increasing in popularity over the last few years. These medical centers are the unique transformation of an existing retail space into a fully functioning medical center that serves basic patient needs. Medical groups can be appealing tenants for owners of retail space. Medical tenants are largely e-commerce-resistant, and they typically hold onto their leases for a longer period of time, which is a long-term win for the landlord.
But, medtail facilities are in direct competition with the traditional form of patient care. Accessibility can be a deciding factor for patients who would otherwise have to drive long distances to visit a hospital. And as medtail and urgent care centers become more prevalent, treatment accessibility will also cause competition between other medtail clinics. In some communities, the wealth of medical options will increase the necessity for in-depth research regarding a medical group’s next location.
Demographics within a Location
GlobeSt.com recently cited survey results explaining that 43% of respondents viewed ages 36-50 as the group best served by medtail facilities. Of course, that doesn’t mean this is the only age group that can benefit from medtail. But the results are a reminder that healthcare facilities need to account for demographic factors when choosing their location. Patient demographics can vary per health practice, so medical professionals should look for locations that can specifically cater to their patient group. For example, a pediatrician may need to find a community with a significant number of younger people rather than opening in a location primarily known as a retirement community.
Medical Real Estate Advisors
From examining a community’s infrastructure to reviewing medical districts, medical real estate advisors handle many of the details behind choosing the right location. Some national healthcare real estate firms also take the time to travel to potential sites to make sure a facility is right for their clients. And before a medical client ever signs any of the final documents, a good medical real estate advisor will perform thorough market research. Their data allows them to compare costs in the area, ensuring that their client will get the right price for their market.
HBRE facilitates all of those details for their medical clients. The HBRE team has years of experience assisting medical clients in finding and securing the right location and handling all of the intricacies surrounding that decision. And when it comes to eventually renewing a lease for a specific location, they understand the importance of rechecking the market comps or even finding other locations for their clients.
The right location for a medical practice may change over time. Medical groups expand and need larger spaces or downsize and shrink their physical real estate footprint. As industry experts project growth for the medical sector, now is the time for health professionals to consider if their current or planned locations are the right fit. And HBRE is the right team to guide medical groups and health systems to locations that can serve their needs and facilitate patient care.
If you are interested in learning more about investing in commercial real estate, or if you have questions about buying, selling, or leasing a commercial property, please contact an HBRE advisor. Our team of experienced CRE professionals have the skills and insight to assist with all property transactions. To reach out to us directly, email [email protected] or call 615-564-4133.
