Picture a local urgent care center in your mind – is it in a shopping center?

Odds are it is!

Commercial property owners are looking beyond your typical department stores, retailers, and grocers and increasingly filling space with medical facilities in a trend known as medtail.

Medtail refers to healthcare services located in a retail setting and typically includes the following types of businesses:

Urgent care centers

Cosmetic / medical spas

Veterinary and pet services

Occupational / physical therapy

Skincare services

Acupuncture

Holistic / alternative care centers

Imaging services

Consumers put a ton of value in convenience and being able to squeeze in a visit to an acupuncturist after having lunch with a friend at a local hotspot, making services like these all the more attractive. On top of that, integrated medtail services directly in the local community instills a greater sense of brand recognition and trust in the small business.

Research shows that about 20% of retail space is now leased by medical providers, up from 16% in 2010. And while this trend is not new for all, there has been a significant expansion past the eye care providers and dentists that have long since leased up space in shopping centers. This is partly due to the pandemic accelerating the trend with depressed rents and less competition, making it mutually beneficial for both property owners seeking to fill space and medical providers looking to expand.

A good example of the pandemic fueled medtail trend in action was also the quick set-up of Covid testing sites across the US. In the Woodbury Common Premium Outlets, a Medrite testing center was set-up where an information center used to be.

So what does this all mean for leasing agents?

One word – opportunity! Expanding the types of small businesses you reach out to for your open spaces increases the odds that you’ll get the deal you're looking for! Also, you can take a first-hand part in educating local business owners on the fact that they can lease up space in the town center. Sometimes, business owners are unaware that they can lease in shopping centers, so it never hurts to reach out and make a connection.

Also, optimism toward medtail is high from all parties – CRE professionals, business owners, and private equity. See the chart below from a 2021 survey by Tether Advisors.

If you are a Resquared user, you have a competitive advantage against your peers as you can use the platform to set up searches for all of the unique businesses that fall under the medtail trend.

Here’s an example of what a search for “acupuncture” turns up in Scottsdale, AZ.

Consider searching this list of keywords and saving them to a List so that you can keep yourself up to date on the medtail providers in your area!

Urgent care 

Cosmetic spa

Medspa

Medical spa

Veterinarian 

Pet services

Occupational therapy

Physical therapy

Skincare 

Acupuncture

Holistic care 

Imaging 

If you have a deal that aligns with the medtail trend – we want to hear about it! Reach out to your customer success manager to let us know, and we’ll send you something special as a thank you!