Location Factors – Anchor Tenants and Complimentary Practices
Commercial Real Estate Fundamentals
The next property consideration we are going to discuss is the impact of what are commonly referred to as Anchor Tenants and also, complimentary healthcare providers. This is an often overlooked but very important consideration when it comes to commercial real estate fundamentals.
Anchor tenants are most commonly found in large shopping centers and areas that are located nearby your office space or in the same building or complex. Anchors are often identified as grocery stores, warehouse clubs, depots, large retailers and other prominent tenants that drive a significant amount of foot traffic into stores and shopping areas. Anchor tenants attract other businesses and retailers who desire to be located nearby for the same reasons. Overall, anchor tenants increase the number of customers or clients in a specific area.
Anchor tenants can also be smaller in size too, as long as they drive significant traffic to a property. For instance, a prominent coffee shop might bring several hundred visitors to a property in a single day. Other restaurants or retailers with a smaller size may also be able to attract a noteworthy amount of potential new patients.
A healthcare practice within an office building, medical office building or on a hospital campus, that has complimentary practices located in the same building or campus can have a huge impact on the success of your practice. For instance, if you are Pediatric Dentist, being located in a building with a Pediatric Physician could have a huge impact on the number of new patients you see. Many healthcare providers will seek out buildings or campuses that allow themselves to be surrounded by other providers that are both complimentary and can provide tangible opportunities for referrals.
In summary, there are pros and cons to nearly every property and each consideration needs to be weighed. The space you are the most excited about might be the most expensive or above your budget. The center that has the most traffic and visitors per day might have the most challenging parking if you are competing for parking against other busy tenants. A property that is priced the most competitively might not offer the visibility and signage you would ideally like.
It’s incredibly important to truly understand all the property options that meet your requirements. To do this, you should hire professional representation and make sure you are evaluating and negotiating with multiple owners whenever possible. This allows you to compare multiple spaces, buildings, landlords and offers against the other options, so you are able to make the best decision possible. Real estate will make a major impact on your practice’s profitability. Make the most of every opportunity.