Service tenants have surpassed 50% of total mall retail leasing, indicating a fundamental shift in landlord strategies. Property managers are reallocating space away from traditional merchandise stores toward services that attract consistent foot traffic and longer dwell times.

Brands like Planet Fitness, Pilates studios and wellness spas are taking over large vacant units formerly occupied by retailers such as Joann’s fabrics. This influx highlights the growing consumer preference for health, wellness and experiential spending within physical retail environments.

As service-oriented tenants proliferate, traditional apparel and home goods stores face increased vacancy risk and must adapt by enhancing in-store experiences or optimizing omnichannel strategies. Mall operators may benefit from more stable lease revenues but will need to balance tenant mix to maintain shopping appeal.