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The Evolution of Healthcare in Shopping Centers | GlobeSt

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6 months ago

May 21, 2024

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The Evolution of Healthcare in Shopping Centers | GlobeSt

Healthcare has long been a cornerstone of the retail sector, but its integration into shopping centers has reached new heights.

LAS VEGAS—One trend that stands out as both innovative and essential in today’s retail landscape is healthcare retail. That is according to Curtis Frost, CEO of Florida-based WMG Development, who we spoke with surrounding the ICSC Las Vegas event.

Healthcare has long been a cornerstone of the retail sector, but its integration into shopping centers has reached new heights, he tells GlobeSt.com. Tenants like dental offices and urgent care facilities are not just coexisting with traditional retail spaces—they’re thriving together. “There is a natural synergy between service tenants that drives convenience for customers easily going from a medical appointment to picking up your called in prescriptions to picking up a few groceries on your way home,” he says.

WMG Development has recognized the power of healthcare retail, Curtis explains, noting that by anchoring grocery-anchored centers with essential medical services, they are not only meeting the needs of customers but also driving convenience and accessibility.

But it isn’t without challenges. Curtis acknowledges that the single biggest concern facing retail developers today is economic viability. “Continued higher interest rates and increased construction costs have produced higher rents for tenants,” he says. “Exit CAP rates have risen, so overall there is more risk at a higher cost of developing.”

He adds that “We are all navigating these concerns in real time while trying to get new projects off the ground. It’s a delicate balance, but having great relationships in the industry is how we help mitigate some of those challenges.”

This year will mark the company’s largest investment year in its 20-plus year history, with 80 tenant openings. “We’re thrilled to invest capital into markets we believe have great long term potential nationwide, serving important needs in each community.”

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