Western suburbs lease caps off strong run for Colliers International in health sector
Cottesloe Central will be home to a new medical centre early in 2015 after the owners of the practice secured a prime lease on level one of the western suburbs shopping centre through Colliers International.
The new centre, to operate as Azure Medical Cottesloe, will occupy a 415sq m tenancy on level one of Cottesloe Central – a space previously occupied by Bikram Yoga – and is currently fitting out the new premises ready to receive patients early in the new year.
Azure Medical will be a full service GP practice with a focus on preventative medicine, anti-obesity, anti-aging and executive health. The practice will also offer laser skin therapy and laser women’s health treatments.
The group has signed a nine-year lease over the premises, in a deal brokered by Colliers International Retail Leasing Executive Tim Scott.
The Cottesloe lease caps off a strong eight weeks of health sector deals for Colliers International, with Mr Scott leasing more than 1,670sq m of medical and allied health services space in the past two months across the metropolitan area.
Tenants involved in those deals include full service GPs, physiotherapists, pathologists, chiropractors and dentists, in areas including Gosnells, Wellard and Northlands as well as Cottesloe.
Tenancy sizes ranged from 44sq m up to 544sq m.
Sales activity in the health sector has also been strong in 2014, with Colliers International’s Aaron Antonas brokering deals covering more than 600sq m of medical space worth over $4.5 million over the past 12 months.
Medical space currently available through Colliers International includes strata lots for sale or lease at McCourt Street Medical in West Leederville, opposite St John of God Hospital, and tenancies for lease at ECU Health Centre in Wanneroo.
Mr Scott said 2014 had seen an increase in leasing activity in the health sector, as medical space in neighbourhood shopping centres became more affordable – and experience in meeting the requirements of health sector tenants was valuable in securing the right space.
“Typically these fitouts are attractive and modern, accommodating up to ten doctors per centre,” he said.
“Medical centres seek spaces generally upwards of 300sq m with good parking at the door, and in busy areas. Typically other medical and allied health services – pharmacies, physiotherapists and so on – will sprout up around these centres, and they tend to build good referral relationships with these businesses.
“Medical deals do require some special skills as they typically have long breakeven periods, and will only start with skeleton staff, so it’s important to structure the deal to allow the tenant to survive early but also reward the landlord over the long term.
“It’s also important to have good contacts in the industry, which allows an agent to quickly gauge the level of interest in areas and pair up the right space with the right tenant.”