Coreland’s Matt Hammond on Connecting ‘Big Box’ Medical with Retail Consumer

By Dennis Kaiser

Healthcare providers target retail environments as an ideal way to bring services closer to patients. Today, medical groups are also integrating retail and hospitality characteristics within their practices. Coreland Companies’ Senior Vice President Matt Hammond, along with his team of Ben Terry and Chris Premac, discusses a recent 40,000-square-foot lease that will transform the concept of traditional medical tenants in neighborhood retail in our latest CRE Q&A.

Q: How do you see medical tenants changing within retail environments?
A: We spend a lot of time talking about the evolving retail experience, but the medical industry is also pushing to do the same. The demands of the Baby Boomer Generation are forcing major medical groups to think more holistically. They are looking to be an everyday health and wellness partner to the community, not just a place to go when you get sick. This is exactly where neighborhood shopping centers have filled a need.

Q: What types of deals are redefining this category?
A: We recently completed a deal to lease 40,000 square feet to Hoag Health Center at Foothill Ranch Towne Centre in Orange County, CA. The space was a former Jo-Ann’s Fabrics store at the heart of one of Orange County’s largest power centers. Big box retail was king when the property was first developed in the 1990s featuring a variety of major retailers. Today, with less options looking for large space, we needed to look beyond soft goods and entertainment.

The remodeled space will be a complete wellness destination. It will address patient care from all aspects, including exercise studios with digital monitoring, community education areas, cooking seminars and brand-name retailers, along with traditional healthcare clinics and an urgent care.

Q: What made this traditional Power Center a better fit than Medical Office space?
A: Hoag had been looking at medical/office campuses before our discussions began. Their goal was to find a strong location within this rapidly-growing neighborhood. As they got further along, they realized that positioning this type of health center in a retail environment provided a better overall experience for patients. It provided an easily-accessible parking field, strong visibility and general convenience.

Q: Was there any pushback from co-tenants or the city?
A: It took a few discussions, but ultimately tenants and public officials saw the value of the potential synergy. This is a sophisticated tenant working to redefine its experience to meet the needs of its customer. The deal just made sense. Whether its retail or medical, they are both focused on creating seamless experiences that capture the attention of consumers in a very convenient way.

For comments, questions or concerns, please contact Dennis Kaiser