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ervice-based retailers have surpassed traditional brick-and-mortar stores as the most active acquirers of retail real estate space, according to CoStar's January report. Foodservice tenants led the charge with over 20% of leasing activity in the first 11 months of 2024, followed by fitness brands at 12%, and health care and education tenants at 6%. This shift is attributed to consumers seeking affordable luxuries after being cooped up during the pandemic.

    Demographic changes have also contributed to this trend. Marriage and birth rates in the US have declined significantly over the past two decades, with a notable drop in marriage rates from 9.8 per 1,000 people in 1990 to 6.2 per thousand in 2022. Birth rates are also influenced by income levels, with higher-income families more likely to dine out.

    Younger consumers have increased spending power and are investing in services like doggy day care, car washes, and fitness club memberships. Gyms, once seen as a liability for neighborhood centers due to parking concerns, are now considered a major draw. Fitness brands are driving traffic to these centers, with the TikTok generation being particularly active members of fitness centers, often incorporating them into their personal brands.