With the steady rise of online retail, brick-and-mortar retail has been having a hard time for a few years now. Nearly 5,900 stores were closed in the US in 2018, and nearly 6,000 are expected to close in 2019. Which means that mall vacancies are at all-time highs in many parts of the country.
Mall of America in Minneapolis, America’s largest mall, announced plans last week to open a 2,300-square-foot walk-in clinic in November with medical exam rooms, a radiology room, lab space, and a pharmacy dispensary service. Mall of America is teaming up with University of Minnesota physicians and a Minnesota-based health care system to operate the clinic.
Here’s another example of the growth of “medtail”. The Dana-Farber Cancer Institute is planning a 34,000 square-foot oncology and hematology outpatient facility in the Patriot Place shopping center in Foxborough, Massachusetts.
Mall leases for apparel retailers declined by more than 10% since 2017, while leases for medical clinics at malls have grown by almost 60% since then.
Why it’s hot: Mall landlords are betting that when patients visit for a flu shot or eye exam, they’ll shop around for clothes or electronics. Adding medical clinics also makes sense for mall owners because they draw in doctors, nurses and technicians every day who may shop and eat at restaurants.