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Amazon’s One Medical Expansion: CRE Opportunities in Healthcare Real Estate
Tuesday, March 25, 2025
Amazon’s Primary Care Expansion:
A Strategic CRE Investment Signal You Shouldn’t Ignore
As a commercial real estate investor, understanding where major corporations are placing their bets can unlock high-potential opportunities before the rest of the market catches on. Amazon’s aggressive expansion of its primary care network, One Medical, is one of those signals.
In an industry that has seen major players like Walmart and Walgreens stumble, Amazon is doubling down—with partnerships, real estate acquisitions, and service integration into its Prime ecosystem. Here’s what this move means for healthcare real estate, mixed-use developments, and your investment thesis.
Amazon Bets on Brick-and-Mortar Healthcare
Amazon’s $3.9 billion acquisition of One Medical wasn’t a flash-in-the-pan acquisition. It’s a long-game strategy to gain market share in the fragmented, yet recession-resistant, healthcare sector. As of March 2025, One Medical boasts over 200 locations in more than 20 cities, with recent and upcoming openings in:
◉ Edgewater, NJ (Edgewater Towne Center)
◉ Jersey City and Englewood, NJ
◉ Westchester County, NY
◉ Cleveland, OH
These aren’t random site selections. They reflect Amazon’s focus on high-density, affluent suburban markets where healthcare demand is strong, yet convenient access is limited.
CRE Implications:
What Investors Need to Know
1. Medical Retail Is the New Anchor Tenant
One Medical locations are designed more like high-end lounges than sterile clinics. That design elevates the entire center’s profile—making these tenants akin to mini Whole Foods in terms of foot traffic and experience-driven branding.
Investor Takeaway: Properties anchored by One Medical or similar hybrid-care providers are likely to experience elevated lease stability, increased consumer dwell time, and above-market rent premiums.
2. Prime Membership Integration = Foot Traffic Engine
For just $9/month or $99/year, Amazon Prime members can access One Medical, blending healthcare with lifestyle spending. This integration is likely to increase utilization and frequent visits.
Investor Takeaway: Higher foot traffic in a medical facility has spillover effects on co-tenants, especially in mixed-use and lifestyle centers. That’s a rare advantage in healthcare real estate.
3. Strategic Partnerships Reduce Risk
Amazon is not going it alone. They’re aligning with major health systems:
Hackensack Meridian Health (NJ)
Montefiore Health System (NY)
Cleveland Clinic (OH)
This model mitigates operational risk and accelerates market penetration.
Investor Takeaway: When evaluating CRE tied to Amazon’s expansion, vet these hospital partnerships as additional indicators of location stability and community entrenchment.
A Cautionary Comparison:
Walmart’s Retreat
Walmart shuttered all 51 of its health centers, citing unsustainable economics and reimbursement challenges. Walgreens, too, is retreating—exploring divestiture of VillageMD. Amazon’s model is proving more resilient, suggesting a carefully architected hybrid approach with stronger monetization.
Investor Takeaway: Look beyond the failures of others. Amazon’s infrastructure, tech stack, and consumer data give it a clear edge in the long-term viability of primary care clinics.
Actionable Strategies for CRE Investors
1. Track Amazon’s Healthcare Footprint Expansion
Monitor public filings, health system partnerships, and local permit activity for early-entry opportunities.
2. Invest Near One Medical Locations
Retail centers, medical office buildings (MOBs), and mixed-use assets within proximity to new clinics can benefit from halo effects and increased demand.
3. Prioritize Tenant Mix Optimization
Pairing healthcare tenants with complementary services—like fitness, wellness retail, or healthy dining—can multiply per-square-foot performance.
The Bottom Line
Amazon’s One Medical expansion is more than a healthcare story—it’s a real estate thesis in motion. For savvy investors, it represents an opportunity to capitalize on a shifting healthcare delivery model that favors localized, tech-integrated, and consumer-centric services.
Ignore it, and you may miss the next wave of stabilized, high-performing CRE assets.
Hi, I Am Sanjeev
REAL ESTATE BROKER / ENTREPRENEUR
Sanjeev Advani is a seasoned real estate entrepreneur and financial strategist from Bakersfield, California. Having built and sold his Company Synergy Property Management, he specializes in innovative investment solutions and portfolio growth. With a rich background spanning real estate, financial planning, and community leadership, Sanjeev brings a blend of tenacity, expertise, and visionary thinking to every endeavor. Dedicated to excellence and driven by a passion for empowerment, he is committed to guiding clients and communities toward success and prosperity.
