Emerging Retail Trends Driving Demand for Shopping Centers – May 2026

Well-positioned retail centers are experiencing renewed investor demand, rising occupancy, and increasing competition for quality space.

One of the most notable changes in today’s retail landscape is the continued growth of service-oriented tenants. Wellness concepts, fitness operators, med spas, healthcare providers, and experiential businesses are increasingly occupying spaces once dominated by more traditional retailers. Consumers are placing greater emphasis on convenience, personal services, and lifestyle-oriented experiences, creating strong demand for neighborhood and community shopping centers that support these uses.

This shift is particularly evident in small-format retail space, where service-oriented tenants now account for a growing share of retail leasing activity nationwide, representing more than half of all retail leasing activity in 2025 for the first time. Wellness and personal care concepts continue expanding rapidly in affluent suburban and urban markets as consumer spending habits evolve toward experience and self-care. Med spa leasing activity across several major US markets grew from approximately 143,000 square feet in 2008 to more than 360,000 square feet by 2024, reflecting broader growth in wellness-focused retail and personal care spending.

Read the entire article – Emerging Retail Trends Driving Demand for Shopping Centers