Landlords with vacant retail space are seeing the benefits of having medical tenants in their shopping centers. The trend, called “medi-retail,” is catching on all over the country, but is especially strong in Orange County, Matt Hammond, director of retail brokerage for Coreland Cos., tells GlobeSt.com.
The brokerage division of Coreland Cos. recently negotiated leases with Fresenius Medical Care and a dental practice at Anaheim West Plaza in Anaheim as well as a dental practice at Hamilton Center in Huntington Beach. Fresenius, a major provider of kidney dialysis services, signed a 10-year deal for 12,063 square feet at Anaheim West and expects to open by the end of the year. The medical tenant will occupy shop space that had been vacant for more than five years. Hammond represented the landlord, Metro Properties, while Garret Ellis of CBRE represented the tenant.
Coreland senior associate Ben Terry negotiated a 10-year deal at Anaheim West with Michael Le, DDS, who signed for 1,320 square feet. Combined with Fresenius, the transactions total $3 million in lease value and bring the center to nearly 90% occupancy.
Terry also negotiated a seven-year lease with Steven James Dental at Hamilton Center for 1,100 square feet. This 7-Eleven-anchored retail center owned by Wohl Investment Co. is now 100% leased.
Coreland had also negotiated a 10-year lease deal for St. Joseph Heritage Urgent Care at Harbor Village Shopping Center in Garden Grove in September 2012. The tenant is celebrating its grand opening in the 5,500-square-foot space, replacing a vacant former Blockbuster.
“Medical tenants have become a very viable option for landlords, providing stable, long-term tenants that can complement a tenant mix,” said Hammond in a prepared statement. “We have found that class-B centers are an ideal fit for medical tenants, offering great opportunities within quality, well-positioned retail centers.”
Source: GlobeSt.com, Carrie Rossenfeld