Regional Real Estate Pivots With The Consumerization Of Healthcare

Two principals at a commercial real estate company, Jonathan Satter and Gary Gottlieb, say the consumerization of healthcare is “contributing to significantly less hospital usage in South Florida with the number of discharges decreasing by the thousands,” Healthcare Finance News reports.

They note that many providers “are now setting up shop in both freestanding and “end-cap” spaces in retail plazas… these healthcare services locations are reaching deeper into local communities, no longer tethered to nearby hospitals.” According to them, providing off campus services is “more affordable and profitable.”

Additionally, “Subleasing by tenants of large private hospitals is becoming more common as medical practices seek to cut costs and steer patients to their facilities.”

However, President of National Healthcare Capital Markets Group Paul Zeman warns “a lot of retailers, when they build a center, don’t budget or plan for tenant improvement (TI) dollars of $60, $70, $80 per square feet. They build in $4 to $5 a square foot. So unless the health system or the tenant was thinking about making a very long-term commitment to the property and investing their own dollars, there’s little TI to be had.”

Summary by MedicalGroups.com

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