When shoppers leave the house, they’re more likely to go to a Botox appointment or boxing class than a traditional retail shop, The Wall Street Journal writes.
In 2025, retail leasing by service-oriented tenants outpaced goods-based retail leasing for the first time ever, a reversal that analysts say is driven in large part by a proliferation of salons, spas and fitness studios.
Service-based tenants leased just over 50% of total retail square footage last year, according to data firm CoStar. Fifteen years ago, service tenants accounted for only 40% of total leasing.
“Consumer dollars remain firmly pointed at services,” says Brandon Svec, national director of U.S. retail analytics for CoStar. “There’s nothing to suggest that that’s going to be shifting anytime soon.”
The retail rental shift also reflects how e-commerce has reduced the square footage that retailers need to sell clothing, accessories and other goods.
Read the full story from The Wall Street Journal.
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