Preview: Hospitals Move to Main StreetFriday, February 17, 2017
On its website, UCLA Health tells its patients “See you around the neighborhood.” That could be at the large retail shopping center down the street in Woodland Hills, or eventually, next to a French café at a busy Encino intersection.
Moving clinics off hospital campuses into non-medical locations that are also prominent and convenient is a new strategy for many major health systems such as L.A.-headquartered UCLA Health. While the effort is a way to gain more exposure for their brands in the Valley and northern L.A. County neighborhoods, taking retail and regular office space is benefitting building owners by filling vacancies, while also giving a healthy boost to construction projects for local contractors.
“It makes for good business," said Managing Director Scott Romick at Lee & Associates-LA North/Ventura Inc. in Sherman Oaks. “UCLA and those types of groups – they commit to long term leases, like 10 years. That’s longer than most tenants will commit to in this market. UCLA and other (provider) types – they are credit worthy. (And) medical practices and businesses typically do not relocate and move out as often as (more typical tenants), such as a certified public accountant or an attorney.”
Read the full story in the Feb. 20 issue of the San Fernando Valley Business Journal.