California Centers

SEP 2018

California Centers Magazine serves retailers, developers, shopping center owners, investment sales brokers and tenant representation firms throughout the state of California.

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Page 32 of 56

26 California Centers Magazine | September 2018 C C T here's an increasingly popular tenant on the retail block, and it typically comes with strong credit, high demand, great stability and internet-resistance. The best part? It can backfill vacancies left behind by shuttering retailers like Wet Seal, Payless, Limited and BeBe, all while bringing a brand-new, loyal clientele into your center. Ready to take a meeting? You better make an appointment. THE DOCTOR WILL SEE YOU NOW Dentists' offices and medical day spas are no stranger to retail centers. They provide the service aspect need- ed in this ever-increasing online shop- ping environment, and they add an air of diversity to a tenant roster that can become too weighed down with competing entities. What started out as an errant clinic here or there has morphed into a trend that has brought sports medicine, primary care, ears, nose and throat (ENT), allergists, ur- gent cares, orthopedics, pediatrics, chiropractic, cosmetic surgeons, der- matologists and more into some of California's hottest shopping centers. The seemingly overnight shotgun marriage of retail and healthcare is no accident, according to the experts. "You have a perfect storm of differ- ent dynamics occurring right now," says John S. Wadsworth, senior vice president of healthcare services in Colliers International's Irvine office. "There is less demand for brick and mortar, retail landlords are looking for ways to fill otherwise dark space, owners are looking for ways to sur- vive, while healthcare trends are fo- cusing on the patient experience and moving closer to consumers. It makes all the sense in the world right now for mall owners and retail developers to take a real, hard look at how health- care can assist in backfilling spaces that were occupied by traditional re- tailers." It's no secret that consumers have taken their shopping experience — in- cluding where, how, when and with whom they shop — back into their hands. This has caused consolidation in the retail world as brands seek to diversify, creating omnichannel plat- forms, personalized experiences, superior customer service and the highest-quality products at the low- est-possible prices. Next up on the chopping block for consumers, Wad- sworth believes, is healthcare. "Healthcare and retail are very syn- ergistic," he says. "The mindset of a healthcare tenant is very similar to the mindset of a retail tenant. Both run a business with a goal of attracting cus- tomers. Healthcare providers are try- ing to control larger segments of the population. They're competing for marketshare, which most people don't realize. We hear from our healthcare provider clients that what's important is delivering convenience, great access and visibility to patients." The business of healthcare has be- come more competitive thanks, in part, to legislation like the Affordable Care Act that has tasked healthcare providers to be more efficient, deliv- ering faster care to a larger number of people, oftentimes with fewer resourc- es. As consolidation occurs and reim- bursements dwindle, the need to view their target audience as consumers Cedars Sinai signed an 11-year lease at mixed-use development Runway Playa Vista in Los Angeles. THE HEALTHCARE MARKETPLACE? Some healthcare providers are taking their clinics out of traditional medical campuses and into California's hottest retail centers, blurring the line between patient and consumer. By Nellie Day

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