Shoppers are on a wellness spree.
What’s happening: According to CoStar, service-oriented businesses leased more US retail space than goods-based tenants for the first time, led by fitness facilities, spas, and salons.
Out and about. Service tenants are up over 10% since 2010 as consumers prioritize well-being and ecommerce shrinks store footprints. Scaling alongside record gym membership, fitness facilities account for 30% of all service leases.
Extra stop. Out-of-home self-care is expanding beyond hair and nail appointments to include IV drips, longevity clinics, and medspas — with the latter gaining 5K sites in the last five years.
Neighbor effect. Gen Z is reviving the mall, with 42% framing it as a social activity. With 60% favoring experiences over things, malls are taking on gyms as anchor tenants, while apparel and beauty shops tailor immersive, community-minded formats.
Forming wellness districts, Manhattan’s Flatiron NoMad Partnership reported 100K square feet of new leases signed to health-related services in two years.
Punchline: From grocery shopping to fresh fits, retail is shifting from transactions to recurring visits. As consumers prioritize wellness spending, retail therapy will require fewer bags and more bookings.
