3 tips to develop a successful medical centre
With the rising prominence of healthcare, many investors and industry professionals are seeking to develop new local medical centres. But what needs to be considered to help find the right location for such specialist projects?
Whether it be for industrial, retail, medical or another purpose, the end-use of a commercial development should play a major role in deciding the location of the project.
So what needs to be considered if you want to develop a local medical centre? Here are 3 factors that need to be evaluated before taking the plunge.
- Area/centre make-up
Some highly developed areas seem like a logical choice to build a medical centre but the local mix of owners, tenants or business may not be right. For example, there may be too many investors instead of business owner-occupiers in the area, which can lead to higher vacancies as tenants come and go. This can lead to lower foot traffic and clientele and can detract from the area’s overall public appeal.
- Nearby competitors
While it can be beneficial for complementary medical providers to be in a local area, building a medical centre near direct competitors can make it hard to attract tenants or a potential buyer. This is because tenants or owner-occupier buyers will be reluctant to lease or buy a property next to a competitor.
- Tenant/buyer referral business
Is a prospective tenant or buyer going to be relying on referral sources for their business, like a specialist can rely on a general practioner for clients? If so, make sure there is a referrer nearby or incorporate space in the development to attract one to your centre.
When considering developing a commercial medical centre, it’s important to understand the needs of the target tenant/buyer, their nearby competitors, the local supply and demand factors of similar stock and the owner-occupier/investor mix.
By keeping these at the fore when searching for potential development sites, you’ll be in a stronger position to deliver a more unique project that leverages existing businesses and avoids competitors, which will be much more appealing to tenants/buyers and will ultimately optimise your returns.