LONG A MAINSTAY of commercial real estate markets, traditional medical office buildings may soon seem as out of date as yesterday’s fashion.

The combined effects of changing demands for medical services, technological innovation, and an aging population are impacting commercial properties once used exclusively for medical offices.

The high cost of medical office space with its extensive specialized buildout has squeezed medical providers already burdened by higher costs for medical services, lower levels of insurance reimbursement, and patients’ demands for improved, more personalized, health care.

As a result, medical services are increasingly being delivered closer and more conveniently to patients, by using less costly, more targeted locations.

Different approaches to medical offices can also reduce patients’ need for hospital stays and cut provider costs.  The ability to accommodate newer technologies, including innovative uses of telemedicine, artificial intelligence and remote or micro surgeries, is an added benefit.

With medical services increasingly leasing space in non- traditional properties, providers may be found in retail locations alongside pharmaceutical or cosmetic products and services. Shared medical space is also more commonplace, as are providers working from administrative offices to dispatch home health care providers. Sometimes, doctors are working directly in their patients’ homes.

By having access to advanced techniques to retrieve, analyze and use the enormous amount of medical data being generated and available remotely, providers can make health care more efficient and deliver it more precisely, while patients benefit from receiving medical services where and when they need it.

THE UBER APPROACH TO MEDICAL CARE

A recent addition to Northern Virginia health providers is Heal, a California-based medical practice. It promises patients that they can go online to access services from the firm’s 1,000-square-foot administrative office tucked away in one of McLean’s general office buildings. For a fee of $99, a doctor arrives at the patient’s home within two hours and can do anything from a standard checkup to blood tests on site.

SHARED MEDICAL OFFICE SPACE

The aging Bradlee Medical Building, near the King Street exit off I-395, has been used to create a state-of-the-art “shared medical office” that can be leased by doctors by the day, with as little as a one-day-a-week commitment for one year.

“Our building is older, but the space is built out to ‘Class A’ specifications,” explained Cecilia Gondor, the

building’s managing partner. “The all-inclusive lease, with no requirement for a long-term commitment, is ideal for three types of doctors: those who are cutting back their work load in anticipation of retiring; new doctors who want an attractive office without the need to pay for expensive state-of-the-art buildouts; and regional doctors looking for a satellite medical presence in Alexandria.”

The space allows medical practices to have a secure networked internet connection, access to electronic records, a robust phone system, HIPAA-compliant storage and ADA- compliant restrooms and access.

The more than 1,900-square-foot office includes an on- site lab, sterilizing equipment, four exam rooms, reception area and a waiting room with Wi-Fi access for patients. Gondor has also provided the doctors with modular storage units to secure their equipment and patient files when another doctor uses the space.

HOME HEALTH CARE

Nefr Isreal started her home health care business, “Care with Love,” and purchased a general office condo overlooking Braddock Road near the George Mason University campus nearly one year ago. The convenient location and visibility for her business were key factors in purchasing her office.

“The home health care business is booming, with more than 300 successful providers now operating in Fairfax County alone,” she said.

The aging population is driving much of the growth in the home health care business, she explained. Home health care services do not need the expensive medical buildouts of typical medical office buildings, but it is important for their administrative offices to have security for patient records, as well as a pleasant work environment for employees.

MEDICAL AS RETAIL

“Retail is evolving, and it is not uncommon now to see more medical uses occupying retail spaces,” observed Diana Shipley, vice president-leasing for Saul Centers, Inc. “More treatment centers closer to where people live simply reduces the time and delay in getting medical services.”

Urgent Care Centers and expanded pharmacy “walk-in” patient clinics are part of the community services provided in local retail centers, Shipley noted.

“It’s where the residents are, and that makes it convenient for them to use. Typically, medical services are located in the smaller, neighborhood retail centers, not the large entertainment-based centers like National Harbor,” Shipley pointed out.

From a landlord’s perspective, it also provides incentives for tenants to sign longer-term leases. As providers become more established and expand their services to include such options as X-ray or outpatient care, it encourages them to remain in the same location longer to stay connected to their patients.

A PRESCRIPTION FOR CHANGE

As medical providers continue to seek ways to reduce costs, while becoming more specialized and technologically integrated, Realtors® need to recognize a prescription for change in the kinds of facilities that will be adapted for medical use. And with corporate mergers combining pharmacy, medical insurance, and medical service in one location, Realtors® can expect to see continued changes in the types of commercial properties their medical clients will occupy.