🏗️ Redevelopment of Existing Retail and Office Buildings 🏥
As healthcare organizations evaluate potential locations for a new ambulatory care facility, the redevelopment of existing office and retail buildings can provide a viable option with several potential benefits:
• lower overall development costs than a ground-up development
• speed to market by leveraging existing building and site infrastructure
• buildings located in attractive areas with high traffic, visibility, and abundant parking
• community support to redevelop vacant or underutilized buildings
To fully realize these benefits, we recommend a thorough evaluation that involves the following key areas of focus.
🔑 Key Considerations for Repurposing Retail Space
1. Due Diligence and Testing: It is essential to learn about the building’s current state and historical uses. Obtain as-built plans, conduct environmental assessments, site surveys, title searches and investigate asbestos, lead paint, mold, and indoor air quality issues to determine the costs, timing, and impact of any required environmental remediation.
2. Program Functionality: Since retail and office locations are not typically designed for healthcare, it is important to determine how well the healthcare programs fit within the existing building configuration. Develop programmatic fit plans that help to determine whether the building supports optimal operational efficiency and functionality for the specific program uses.
3. Building Structure: Retail and office structures are often designed to lower structural loading criteria. Additional structural steel modifications may be required to support additional loads required for major medical equipment, operating rooms, and higher intensity uses. Evaluate the roof and walls for load capacities, insulation, and structural integrity. And finally, consider if energy efficiency upgrades and necessary modifications for floor-to-roof heights and new windows can be implemented cost-effectively.
4. Building Systems: Commercial buildings typically have basic plumbing and HVAC systems that require significant enhancements to meet the requirements of healthcare uses such as exam room pluming, sterilization needs, and more stringent HVAC ventilation for infection control. Healthcare facilities also require an intricate lighting plan, a robust low voltage system, and abundant power to support specialty equipment. Assess the existing electrical system for capacity and safety and plan for necessary upgrades to support healthcare operations and back-up power needs.
5. City Approvals: Investigate zoning requirements and engage with city stakeholders early in the process to assess their level of support for a new healthcare use and potential economic incentives. Engage a civil engineer familiar with local regulations to provide a clear understanding of the challenges, approval timeframes, and issues that will have to be addressed in the redevelopment.
🔍 Informed Decision-Making: As described, a thorough analysis will help determine if a redevelopment is cost-effective, achieves speed to market, and effectively positions healthcare providers in a target market. To assist with evaluating a redevelopment opportunity, we have a multi-disciplinary team of experts that can guide you through the process.
📄 Learn how we partnered with Yale New Haven Health on acquisition and redevelopment considerations for a vacant Macy’s in Connecticut. [Link to article here]
