Shopping Center Landscape Evolves with Rise of Wellness Tenants
In the not-so-distant past, dentists were often viewed with the same enthusiasm as a toothache at shopping centers. Landlords typically favored traditional retailers over dental practices, pushing dentists to obscure corners of malls or even refusing to lease them space altogether. However, a recent transformation has taken place, with dentists now emerging as prominent tenants in many shopping centers. This shift is part of a larger trend that sees medical-retail businesses, known as “medtail,” joining the ranks of boutiques and restaurants in neighborhood malls.
The Changing Face of Shopping Centers
Chris Aguon, the vice president of real estate at PDS Health, which operates over 300 dental offices in California, including Alhambra Modern Dentistry at Alhambra Place, reflects on this evolution. He notes that prime spots in malls that were once reserved for “better” tenants are now being occupied by dentists. Alhambra Modern Dentistry stands alongside upscale brands like Sephora and Sprouts Farmers Market, offering convenience to patients who previously had to visit medical office buildings for dental care.
As the pandemic forced many small businesses to close, retail landlords found themselves grappling with empty spaces in their malls. To entice potential customers and fill these vacancies, landlords began welcoming a diverse array of medical-related tenants, including dentists. This strategic move not only breathes new life into shopping centers but also caters to the changing needs of consumers seeking convenient access to healthcare services.
The Rise of Medtail
With the increasing demand for dental services, dentists now have the luxury of being selective about their practice locations. PDS Health focuses on establishing dental offices in local shopping centers frequented by nearby residents. Aguon emphasizes the importance of co-locating with big-box retailers like Target, Costco, or Walmart, as well as neighborhood grocery stores. This strategy leverages the fact that women, who often make healthcare decisions for their households, are frequent shoppers and are more likely to try a conveniently located dental practice.
PDS Health recruits freshly graduated dentists and places them in accessible storefront locations across the country. Patients, ranging from walk-ins with immediate dental needs to neighbors seeking local dental care, find these modern dental offices more inviting than traditional “mom-and-pop” establishments. Stephen Thorne, the CEO of PDS Health, underscores the importance of creating a comfortable and welcoming environment for patients, ensuring that the dental office exudes a welcoming ambiance rather than a clinical setting.
The Expansion of Medtail and Wellness Tenants
The convergence of medical and retail services, known as “medtail,” has become a burgeoning trend in the real estate industry. Barrie Scardina, the president of retail services for Cushman & Wakefield, highlights the growth of medtail businesses following the disruptions caused by the COVID-19 pandemic. Urgent care facilities, veterinarians, and dentists were among the early adopters of this concept, demonstrating resilience to economic fluctuations.
Beyond dentistry, the wellness category within shopping centers is expanding to include boutique gyms, fitness centers, and a variety of wellness businesses. These establishments offer services ranging from muscle and joint pain relief to stress reduction and aesthetic treatments. Colin Shaughnessy, the executive vice president of leasing for Unibail-Rodamco-Westfield, anticipates a new wave of wellness providers focused on weight loss and lifestyle management. These emerging businesses aim to support individuals in maintaining their health and well-being long-term, providing a holistic approach to healthcare within a retail setting.
In Conclusion
The evolving landscape of shopping centers reflects a shift towards holistic wellness offerings and experiential retail concepts. As consumers seek a balance between health-conscious choices and indulgent treats, shopping centers are adapting to accommodate diverse preferences. The integration of wellness tenants alongside traditional retailers not only enhances the overall shopping experience but also fosters a sense of community and well-being within these commercial spaces.
The future of shopping centers lies in the seamless integration of healthcare services, wellness offerings, and experiential retail concepts that cater to the evolving needs and preferences of consumers. By embracing this multifaceted approach, shopping centers can position themselves as vibrant hubs of activity, offering a diverse array of services that cater to the mind, body, and soul.
