TUSTIN, CALIF. (June 14, 2013) – The “medi-retail” trend is growing, as evidenced by the signing of three medical deals at two Southern California shopping centers. The brokerage division of Coreland Companies recently negotiated leases with Fresenius Medical Care and a dental office at Anaheim (Calif.) West Plaza, as well as a dental office at Hamilton Center in Huntington Beach, Calif.
“Medical tenants have become a very viable option for landlords, providing stable, long-term tenants that can complement a tenant mix,” said Matt Hammond, Coreland Director of Retail Brokerage. “We have found that Class B centers are an ideal fit for medical tenants, offering great opportunities within quality, well-positioned retail centers.”
Fresenius, a major provider of kidney dialysis services, signed a 10-year deal for 12,063 square feet at Anaheim West. Expected to open by the end of 2013, the location 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.
“As with all deals, medical tenant deals have their benefits and drawbacks,” shared Hammond. “Owners typically have to agree to a significant T.I. allowance and build-outs may take up to a year, which is typically not the case when negotiating with local retailers. However, these are stable tenants with an established customer base and a high probability of renewing.”
Negotiated by Coreland Companies’ Senior Associate Ben Terry, Michael Le, DDS signed a 10-year deal at Anaheim West for 1,320 square feet. Combined with Fresenius, the transactions total $3 million in lease value and bring the center to nearly 90-percent 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 Company is now 100 percent leased.
Celebrating its grand opening this month is St. Joseph Heritage Urgent Care, which signed a 5,500-square-foot, 10-year deal at Harbor Village Shopping Center in Garden Grove, Calif. Negotiated by the Coreland team in September 2012, the new tenant replaces a vacant former Blockbuster.