Cedars-Sinai will be checking into three floors of medical office space above the new Runway retail center in Playa Vista.

More than two dozen primary and specialty care physicians will occupy 32,000 square feet of commercial office space above the new retail district, developed by Dallas-based Lincoln Property Co., Cedars-Sinai announced Monday. The L.A. health system expects to have doctors at Runway in specialties such as dermatology, cardiology, orthopedics and OB/GYN.

Cedars-Sinai, which will be an anchor tenant, is slated to open the new regional office by the end of next year. When finished, the mixed-use development on 11 acres off Jefferson Boulevard will include 420 residential units in addition to 220,000-square feet of retail space and the offices occupied by Cedars.

“We look forward to continuing to deliver high-quality services for our current patients and welcoming new referrals when these offices open next year,” said Cedars-Sinai Health System Chief Executive Thomas M. Priselac in a statement.

Perched above a Whole Foods Market, Starbucks and CVS/Pharmacy, the health system’s new office is the latest example of medical providers increasingly seeking space in retail centers, trying to situate themselves in locations their patients already frequent. While Cedars has taken a hybrid approach, setting up medical offices above retail shops, other providers have opened practices inside actual storefront.

Examples include USC Keck Medicine’s comprehensive primary care clinic at 830 S. Flower St. in downtown Los Angeles and UCLA Health System’s new primary care practice that will launch at the new Village at Westfield Topanga in Woodland Hills next month. (Read more about the trend in this week’s Business Journal.)

Retail space became more of an option for medical providers after the recession freed up such real estate and Obamacare introduced a slew of newly insured patients into the marketplace. Commercial landlords have found large medical providers appealing partly for their good credit and the influx of daytime traffic their patients bring.

Indeed, Lincoln Property Co. saw Cedars as an attractive tenant rounding out the variety of services available at Runway.

“This addition will further strengthen Runway’s reputation as a center for all of our community’s needs, from best-in-class dining and entertainment to world-class healthcare services,” said Lincoln Property Company Executive Vice President David Binswanger in a statement.

Todd Doney and Chris Isola of CBRE Group Inc. represented Cedars-Sinai in the transaction. Kent Handleman and Robert Hook led the negotiations for Lincoln Property Company. Financial terms of the lease were not disclosed.

Read the Business Journal’s previous coverage of the Runway Playa Vista here.

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