Retail leasing continues to evolve as consumer preferences shift toward experiences, wellness, and service-based retail concepts.
A recent article from CoStar Group highlighted an interesting milestone: service-based tenants leased slightly more retail space than goods retailers in 2025, accounting for 50.4% of leasing activity compared to 49.6% for traditional retail. While the difference is small, it shows a shift that has been developing across the retail landscape for several years.
Consumers are increasingly spending on fitness, recreation, dining, entertainment, and other service-oriented experiences, and retail environments are adapting to support that demand.
Fitness and Experiential Concepts Are Expanding
One of the most active categories within service-based retail has been fitness. Operators continue to expand as health and wellness remain a priority for many consumers, and these concepts often bring consistent traffic and repeat visits to retail centers.
Entertainment and experiential concepts are also gaining ground. Retail destinations today often include activities that encourage visitors to stay longer and return more frequently. Interactive entertainment, recreation, and social experiences have become an increasingly common part of the tenant mix in lifestyle centers, mixed-use developments, and repositioned retail properties.
Many of these concepts are also well suited for second-generation retail space, including former big-box and junior anchor locations.
A Broader Mix of Uses in Retail Centers
Restaurants and traditional retailers remain essential drivers of retail environments and continue to generate significant leasing activity and traffic. What is changing is the range of uses within retail centers.
Today’s retail environments increasingly blend shopping, dining, fitness, entertainment, and services to create destinations that attract visitors throughout the day.
At Blue West Capital, this trend is showing up across a growing number of experiential concepts entering the market. The firm is currently working on expansions including exclusive tenant representation for Museum of Illusions and Dill Dinkers, reflecting continued demand for retail space focused on recreation, wellness, and interactive experiences.
As retail continues to evolve, experiential concepts are becoming an important complement to traditional retail and dining, helping create more dynamic environments for both consumers and property owners.
For a deeper look at the data and charts behind this trend, read the article from CoStar here.
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