OSF HealthCare Weighed MidTown Plaza Expansion

The health system has initiated discussions with tenants regarding the potential repurposing of retail space.

Updated on Oct. 8, 2026 in Openings & Closings

A modern multi-unit brick retail building with empty glass storefronts, captured under diffuse, overcast daylight. — OSF HealthCare is reviewing lease agreements for commercial tenants at Peoria's MidTown Plaza as the health system explores expanding medical service availability. AI Illustration. Upload story photo >

Live Poll

Should health systems prioritize expanding services over maintaining existing local retail business tenancies?

OSF HealthCare is considering expanding its medical services into retail units at the MidTown Plaza in Peoria. The organization is currently evaluating remaining lease terms for local businesses to determine future property usage.

Why it matters

Rising patient volume at the Center for Health since 2020 has created a need for more accessible ambulatory care options. This expansion effort aims to meet that demand by leveraging space the health system already owns at 1800 N. Knoxville Avenue.

MidTown Plaza was originally developed in 2002 using $5.5 million in city bonds. OSF HealthCare, which has operated the Center for Health at the site since 2020, is now assessing the facility for expanded medical utility.

The players

OSF HealthCare

This integrated health system operates a network of hospitals and outpatient clinics across the region.

She-Pop Gourmet Popcorn

This is a local retail business currently operating as a tenant at the MidTown Plaza property.

The Baby Shoppe

This retail entity is a tenant at the plaza that has elected to relocate its operations to Sheridan Plaza.

The details

OSF HealthCare is currently reviewing existing leases to facilitate growth, resulting in changes for some long-standing business tenants. While The Baby Shoppe has announced plans to relocate to Sheridan Plaza, the lease for She-Pop Gourmet Popcorn is confirmed to expire in June 2028 without renewal.

MidTown Plaza opened for business in 2002.
The Center for Health at MidTown Plaza opened in 2020.
The lease for She-Pop Gourmet Popcorn is set to expire in June 2028.

Market Landscape

The potential expansion reflects a broader trend of health systems consolidating real estate to increase patient access points. This strategy repositions OSF HealthCare to optimize its existing portfolio while shifting the plaza from a mixed-use retail space to a specialized medical hub.

Shoppers who frequent MidTown Plaza should anticipate changes to the current retail mix as leases are evaluated. Residents seeking healthcare will likely see an increase in accessible medical services at the 1800 N. Knoxville Avenue location in the future.

The takeaway

The transition of space at MidTown Plaza highlights the growing demand for convenient healthcare access in suburban settings. Residents should monitor local business announcements to track which retail services will remain in the plaza as the conversion process continues.