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The Surging Market for Health System Leases in Retail Centers


Healthcare providers are leasing space in suburban shopping centers with increasing frequency. Sparked by a number of factors, including a desire to make healthcare more convenient for patients, the ongoing surge in retail/medical leasing has been a boon to shopping center landlords looking to fill vacant space. However, the marriage between retail space and medical use requires give-and-take between landlords and health system tenants. Medical tenants must be sure that their use of the space will not violate applicable zoning requirements designed to allow for traditional retail activity. To induce medical tenants—and account for the fluidity of doctors’ schedules—shopping center landlords must often relax typical retail requirements, such as mandatory "open for business" hours and continuous operation provisions, in retail/medical leases, while accommodating HIPAA and other applicable laws.

McCausland Keen & Buckman shareholder Andrew Maguire negotiates commercial real estate and energy transactions on behalf of his clients. For more info on our Bisnow partner, please contact Andrew at

The views expressed here do not constitute legal advice; parties to transactions should seek legal counsel.