Done Deals: Marcus & Millichap Reports Retailers Gradually Stepping into the Healthcare Industry

Tuesday, May 28, 2013

Marcus & Millichap Reports Retailers Gradually Stepping into the Healthcare Industry

WALNUT CREEK, CA -- Retailers that typically occupy net-leased space are reacting to changes in consumer spending patterns and attempting to diversify to capture higher returns on existing footprints.

Fast-food restaurants are luring health-conscious individuals into establishments by revamping their menus.

Chains with at least 20 locations are undergoing preparations to list calories on their menus upon the full implementation of the Affordable Care Act (ACA) in 2014.

McDonald’s and Wendy’s are leading the charge in making new offerings healthier to broaden their customer bases.

The ACA will also impact drugstores due to an anticipated increase in the number of prescriptions. Despite the uptick in demand, expansion plans by major drugstores are waning as the number of desirable locations fades.

The resurgent national housing market should reverse this trend beginning in 2014 as additional suburban corners become available.

Grocers, Target and Wal-Mart are also aiming to capture a slice of the government and corporate-sponsored healthcare dollars. Several of these chains are offering clinical services in addition to pharmacies, which should boost revenues without a new major square-footage commitment.