Don’t Overlook Workhorse Services Tenants: The Quiet Drivers of Retail Success

Press

Don’t Overlook Workhorse Services Tenants

The Quiet Drivers of Retail Success

Community-oriented service tenants—such as salons, tutoring centers, and tax preparers—are proving essential for boosting retail occupancy, increasing dwell time, and fostering customer loyalty in shopping centers.

In the push for full occupancy, landlords are increasingly turning to reliable “workhorse” service tenants—like salons, chiropractors, pet groomers, and tutoring centers—to fill retail vacancies and drive steady foot traffic. These businesses meet essential community needs and often combine retail products with services in hybrid models that work well even in secondary or less-visible locations.

At Canton Marketplace in Georgia, for example, Acadia Realty Trust boosted occupancy from 88% to 99% by bringing in 17 service-oriented businesses among its 48 tenants. These included names like Deka Lash, PetSmart, Club Pilates, and Foot Solutions.

As Bill Read noted, this strategy “filled a need for the community and greatly added to the reasons to shop our center,” ultimately encouraging longer visits and more cross-shopping. Even in areas away from anchor tenants, the team prioritized filling spaces “with retailers that provided services and had high touch points with our existing customers.”

Read emphasized that Foot Solutions exemplifies this model:

“It is really there as a service provider… They provide something that you cannot get at a normal shoe store.”

These service categories aren’t just stable—they’re evolving and expanding. Nail salons, for instance, have transitioned from modest 1,200-square-foot setups to spaces exceeding 3,500 square feet, often adding services like facials and waxing. As Read observed,

“Now, they’re all wanting 3,500 to greater than 5,000 square feet.”

Pet-related services are also on the rise, fueled by post-pandemic pet ownership trends. Chains like Dogtopia and Pet Supplies Plus offer grooming, training, and even veterinary care, fostering repeat visits built on customer trust. These tenants tend to co-locate effectively with anchors like grocers and drugstores, benefiting from consistent daily traffic.

Operators like Westwood Financial, which manages over 125 centers, see consistent returns from service tenants such as Great Clips and H&R Block. These businesses not only attract regular foot traffic but also build long-term loyalty—something that’s difficult to achieve with trend-based retailers.

Developers and landlords are also rethinking their leasing strategies during acquisitions and repositioning. Rather than chasing trendy concepts with higher rent potential, many are prioritizing the retention of long-standing service providers who maintain strong community ties.

At Foothill Village in Salt Lake City, for example, Asana Partners opted to keep anchor service tenants like The UPS Store, Kumon, and Great Clips as part of the property’s activation strategy. These businesses may pay lower rents—typically $42 to $45 per square foot, compared to $55 to $60 for restaurants or soft goods—but they thrive in spaces that are harder to lease, such as upper floors or less-trafficked wings.

Landlords are increasingly adjusting pro formas to accommodate these tenants, recognizing their role in enhancing overall performance and reaching full occupancy. By focusing on dependable, service-oriented retailers with strong community value, landlords create stickier retail environments that deliver lasting success.