Traditional office buildings have increasingly been considering medical tenants for spaces historically reserved for professional office use, a trend that is reshaping both traditional office buildings and medical practices, according to a Colliers report.

The shift is tied to high vacancy rates in traditional office buildings caused by remote and hybrid work. Landlords are seeking creative solutions to backfill empty floors, said Colliers.

Medical tenants, the only office sector that has shown consistent growth since 2020, have been filling some of this void, but accommodating medical tenants has its own set of challenges for landlords including additional plumbing, specialized electrical capacity and parking requirements. In addition, building hours and after-hours access systems can pose challenges and some landlords and tenants worry about increased foot traffic and medical waste. Moving to a traditional office space also may diminish an organic referral network that occurs among tenants in dedicated office buildings.