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“During the pandemic, restaurants didn’t shut down. They moved into takeout kitchens, and delivery apps kept them in business,” said Brandon Svec, CoStar’s national director of retail analytics.

Svec remarked, "Once businesses reopened, dining out emerged as a sensible option for people eager to enjoy themselves and spend their money. After being cooped up at home, many viewed it as an accessible indulgence."

CoStar has indicated that demographic shifts have contributed to the growth of service-oriented businesses. Over the last few decades, the rates of marriage and childbirth in the United States have significantly declined. 

As reported by Statista, the marriage rate in 1990 stood at 9.8 marriages for every 1,000 individuals. However, by 2022, this figure had significantly decreased to just 6.2 per 1,000. 

In 2004, the birth rate was around 14 births per 1,000 people. Twenty years later, that number fell to just 11.  What’s more, birth rates are highly affected by income levels. In 2021, the birth rate for families with an income of under $10,000 was 62 births per 1,000 women. The birth rate for families with an income of $200,000 or more—the ones most likely to dine out--was 47.

Younger shoppers are increasingly finding themselves with disposable income, which they're directing towards services like doggy daycare, car washes, and gym memberships.

For a long time, tenants at local centers avoided gyms because their patrons occupied numerous parking spots while contributing little to the businesses in the area. However, according to Svec, this trend has shifted.

“Fitness brands have become a powerful force in attracting visitors to a center. They are no longer overlooked; instead, they are taking center stage,” Svec stated. “The TikTok generation actively participates in fitness centers and has integrated these activities into their personal identities.”