Landlords continue to add more non-retail tenants to their shopping centers. The share of total shopping center space dedicated to non-retail or restaurant tenants rose from 19.2 percent in 2012 to 24.5 percent in 2018. This shift in the tenant mix is paying off. Shoppers have increased their visits to fitness & wellness (47.0 percent), food & beverage (42.0 percent), leisure & entertainment (39.0 percent) and medical (35.0 percent) tenants, among others.
Developers are building more mixed-use properties that combine multifamily with retail and entertainment. This is right in line with what consumers want. Approximately 78.0 percent of U.S. adults would consider residing in a mixed-use development, mainly because of convenience and time savings.
More than 25.3 million square feet of Class A retail space is slated to be delivered this year. Of that number, 65.8 percent will be general/ freestanding retail, which includes urban projects. Malls comprise 16.7 percent of the expected space delivery. In 2020, more than 40.0 million square feet of Class A retail will be delivered. General/freestanding retail delivered will rise by more than 50.0 percent, while shopping center deliveries will nearly double. Mall space delivered will remain relatively constant.