JLL announced on May 19 that approximately 16.5 million square feet of location-based entertainment concepts are planned across the United States and Canada, as consumers look for leisure options closer to home. JLL executives shared these findings during the ICSC Las Vegas event, highlighting a retail sector marked by limited space, steady demand, and changes in tenant mix.
The report matters because it shows how consumer preferences are changing the types of businesses occupying retail spaces. Entertainment and healthcare tenants are now filling more second-generation retail spaces, including former anchor stores and big-box vacancies. This trend is narrowing the options for traditional retailers seeking to return to the market.
James Cook, JLL senior director of Americas retail research, said about consumer spending: “High-net-worth individuals are doing very well. … Meanwhile you’ve got a lot of folks who are on a budget looking for value.” He explained that as higher costs make destination entertainment less accessible for some households, smaller-format venues such as trampoline parks or branded attractions like Netflix House are expanding.
Naveen Jaggi, JLL president of retail advisory services, addressed how vacant spaces are being reused: “Entertainment and health [are] the two biggest users of traditional retail space that have taken space in the last 10 years.” Much of this activity involves second-generation spaces formerly occupied by large retailers.
Paul Chase, president of JLL Lifestyle Property Management, noted that demand remains steady even though new development has slowed down. Chris Gerard, JLL Capital markets senior managing director and retail co-lead said: “Retail has led [the NCREIF Property Index] for 10 straight quarters,” adding that investor interest remains strong but available inventory is limited. Gerard also said: “The demand is extremely high … but there’s just not enough space for people to buy.”
Jaggi pointed out a disconnect between consumer sentiment and actual spending: Consumers may feel cautious about the economy but continue to spend due to strong investment portfolios despite concerns over inflation. This situation supports both higher-end and value-oriented segments while leading to mixed results in categories like apparel.
