The economy, even before the crash of 2008, was seeing a decline in strip mall business. Much of this was due to the Internet which at the time was killing small mom and pop businesses which occupy so many of these strip malls. Restaurants aside, sports card shops, insurance firms, and most any retail sales business were taking a huge hit. Everyone knows it is difficult for a small family run business to stay in business more than a couple years. These strip malls often have a high turnover.
The solution has become something more if you are planning to own one of these properties. Retail businesses run the course of the economy. When it’s down these businesses are down and often go out of business. When business is good they look to expand and move to a bigger location. Retail just isn’t good business. Office space can be outstanding especially in the medical field.
Throughout the recession and the recovery the one constant has been the growth of the medical field. Small, medium and large communities are seeing tremendous expansion in the medical industry because we are living longer and medicine is a huge growth industry. Supported by the drug companies, government and expensive equipment doctors must own, experts tell us the medical field is going nowhere but up.
When looking to purchase one of these strip malls or similar locations leveling it and constructing a one or two story medical facility could be your key to the future. If there is a hospital nearby this is a bonus. Doctors are making money, despite their complaints about Obamacare, and many of them are staying in the business longer. They fear they will need to continue their practice because the Medicare gravy train is slowing down, thus decreasing their income.
Drive through a community and look at the amount of vacant retail space. Next, check out the local medical facilities beginning with the hospitals. More than one means there is a good chance there is more than enough foundation to expand local office facilities. Talk to local clinics and doctors. Offer a mixer for doctors via the local Chamber of Commerce and see what their needs are. Chances are you will learn they need newer and updated office space. Their input will be invaluable. Local group clinics are stable and if their offices are old and rundown you can make them an offer they can’t refuse.
Once you get to that point check out the locations and keep a good eye on the parking opportunities. Having on-site parking, especially underground, could mean a major source of revenue for you in the larger cities. For instance, while parking at Community Memorial Hospital in Ventura, CA is free, parking at Cedars-Sinai in Los Angeles runs about $12 per visit. With 2,000 visits a day on average it doesn’t take much to figure the quick return on your investment.
Medical facilities are on the rise and in many communities those facilities around the hospitals are lacking the necessary things doctors want; clean environment, lots of electrical power, good elevators, multiple exam rooms and sufficient parking along with easy access. If you can provide this by purchasing and tearing down an eyesore strip mall you will be the darling of the community and set for big profits.