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ICSC Research: Wellness tenants bring life to retail centers

June 4, 2020

Products and services promoting physical, mental, emotional, spiritual, social and environmental health are more popular than ever, reflecting a growing global consumer focus on wellness. Shopping centers can provide wellness tenants with a healthy source of foot traffic, while wellness tenants can help shopping centers remain vital community hubs, according to an ICSC Research report called Wellness Companies Add Vitality to Tenant Mix.

Wellness tenants, which usually occupy 1,000-2,000 square feet, enjoy several advantages when they locate in shopping centers, including ample parking, flexible layout and prior consumer awareness of the shopping centers’ locations, according to the report. And wellness stores and services benefit other tenants in their centers. According to a survey of 1,000 U.S. adults that Engine Insights conducted March 20-22 on behalf of ICSC, 63 percent of visitors to wellness facilities are likely to spend more money at other tenants at the same center. Grocery stores and pharmacies are the most likely spots. And because the most popular times for wellness visits are mid- to late morning and early afternoon, such tenants promote a steady flow of traffic throughout the day, according to the report.

Consumers continue to exhibit a strong interest in wellness tenants and establishments associated with health, so landlords could try to close deals by offering wellness companies more tenant improvement dollars, rent abatements and free advertising, the ICSC Research report said.

Read the full report here.

By Brannon Boswell

Executive Editor/SCT