- The US med spa industry is now a $17B sector, with over 10K facilities nationwide, driven by high demand for aesthetic treatments like Botox and GLP-1 injections.
- Med spas are increasingly taking over storefronts, malls, and multifamily buildings, offering attractive returns for landlords and operators—but also raising regulatory red flags.
- Inconsistent state-level oversight and a rise in malpractice cases are prompting concerns about safety and potential market saturation.
The Big Boom
Medical spas have rapidly emerged as one of the fastest-growing segments in the wellness and aesthetics space, reports Bisnow. These clinics offer everything from Botox and fillers to laser treatments and body contouring. In 2023, they generated an average of $1.4M in annual revenue per facility, according to the American Med Spa Association. The number of locations jumped from about 8,900 in 2022 to over 10,500 in 2023.
A Real Estate Magnet
For landlords, med spas are now desirable tenants. Their low-overhead operations, strong consumer demand, and increasing ability to finance treatments make them ideal occupants for storefronts, suburban strip malls, and even residential buildings. In Chicago, med spa owner Kimberly Mack opened a location inside her own multifamily tower, noting that some clients later became residents.
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Consumer Demand + Financing = Growth Fuel
Operators like PowerPay, which finances elective procedures, report a spike in consumer lending for med spa services. By lowering upfront costs, financing is not only drawing more customers but helping med spas expand into more prime retail space.
But Growth Comes With Risk
Legal experts and industry veterans warn that the surge in new med spas may be outpacing qualified talent and oversight. Procedures are often performed by nurses, physician assistants—or in some cases, unlicensed staff. As regulatory guidance lags behind growth, malpractice lawsuits are rising, with one 2023 Pennsylvania case resulting in a $1.2M judgment against a med spa.
Patchwork Policies
States like Illinois and Rhode Island are tightening regulations, requiring procedures to be supervised by licensed physicians. But others remain lenient. In Texas, a bill to restrict unlicensed individuals from administering Botox was vetoed, underscoring the uneven oversight across state lines.
Saturation Point Ahead?
Chicago plastic surgeon Dr. Steven Dayan warns that rapid expansion without proper training is diluting quality. “Eventually, when you keep training people, you get to a saturation point where you’re not producing anyone good anymore,” he said.
Looking Forward
Despite risks, demand remains high—and growing cultural acceptance of aesthetic procedures continues to drive interest. For real estate players, the med spa trend presents opportunity, but one with fine print. The industry’s long-term viability may depend on how quickly regulators can catch up.
Why It Matters
Med spas combine consumer-facing retail with healthcare services—making them a unique, high-revenue tenant class. But for real estate investors and developers, the sector’s future will be shaped as much by state legislation as by consumer demand.
