While attractive, conversion potential has historically been limited because medical requirements differ significantly from those of traditional office or retail buildings. Specialized HVAC, infrastructure to support heavy medical equipment, significant parking requirements and other building needs can make conversions challenging. Developers and providers, however, are finding a way forward as high construction costs and increasingly limited availability of outpatient medical space make conversions more attractive. Nearly 1 million square feet of conversion projects broke ground in 2025, followed by more than 800,000 SF in 2026 year-to-date—up from roughly half that amount in 2024.
In Baton Rouge, an orthopedic clinic just broke ground at the end of July on a conversion of a seafood restaurant that will be transformed into a medical building housing physical therapy, rehab and MRI services.
In June, Convenient CareMD broke ground converting an old Staples location into an urgent care and primary practice facility in Waterville, Maine.
Around the same time, Children’s Health in Dallas started a project converting a Macy’s location that will house urgent care, primary care and behavioral health.
With providers facing a shortage of available outpatient medical space combined with significant cost barriers to new ground-up construction, this trend is likely to continue. Conversions are becoming an increasingly viable way to add much needed medical space while avoiding some of the costs and challenges of new construction. Stay tuned as we track how this trend—and others—continue to develop with a subscription to Revista.
