The rising increase in preventative medicine and the awareness surrounding people’s desire to keep healthy has led to the growth of many new health and wellness concepts that are finding homes within neighborhood retail strip centers. These non-traditional “med-tail” concepts include alternative medicine, acupuncture, massage therapy, cryotherapy and physical therapy. Instead of renting space within healthcare facilities, health and wellness tenants have been strategically positioning themselves in highly visible, high traffic shopping centers.
Med-tail tenants are viewed by landlord’s and other retail tenants as having a positive overall impact on the properties that they join. Health and wellness uses act as an additional driver to shopping center properties by increasing foot traffic and providing these properties with repeat customers that shop the other nearby tenants. For instance, if you go to a physical therapy appointment, you are likely to stop at the grocery store afterwards, possibly pick up your dry cleaning next door, or stop in for a smoothie at the smoothie shop. “Many med-tail uses have tenant synergies with traditional retailers, says Brian Finnegan, executive vice president and chief revenue officer for Brixmor Property Group. “For example, the wellness aspects of chiropractic, massage and acupuncture are complementary to some of the athletic wear that an apparel operator may want to sell,” he notes.
They are also becoming more aggressive when it comes to finding the right location for their businesses and are willing to pay the premium for it. All of these factors make them considerably less risk for landlords. We will continue to see med-tail tenants play a vital role in shopping center occupancy.
To read more, click the link: New Types of Health and Wellness Tenants Drive Retail Leasing Activity (wealthmanagement.com)