Property Services

TODAY’S CATEGORY - LEASING

Understanding where consumers are spending their money is essential for leasing agents. Following spending trends can help identify businesses that are more likely to remain successful and become long-term tenants.

The largest household expense continues to be housing, accounting for approximately 33% of the average consumer's budget through rent or mortgage payments. Transportation follows at about 17%, while food and personal insurance and pensions each make up roughly 12%. Healthcare accounts for about 7%, with the remaining 16% going toward discretionary spending such as entertainment, travel, and recreation.

Even with persistent inflation, spending on essential goods and services remains strong. Interestingly, consumers have continued to prioritize experiences, including travel and entertainment, despite higher prices. At the same time, consumer debt has climbed to record levels, with outstanding credit card balances exceeding $1 trillion, signaling that many households are relying more heavily on credit to maintain their spending habits.

Dining habits are also shifting. Nearly three in ten consumers report eating out less often to manage costs. However, Generation Z continues to dine out more frequently than other generations, making food concepts that appeal to younger consumers an important consideration in the right markets.

Another category that continues to show long-term growth is the pet industry. Americans increasingly view their pets as members of the family, driving consistent spending on pet food, grooming, veterinary care, boarding, daycare, and specialty retail. Pet-related businesses have demonstrated resilience across economic cycles and remain an attractive tenant category for many shopping centers.

For leasing agents, understanding these consumer spending patterns is more than interesting market data, it helps identify tenant categories with lasting demand. Businesses that provide essential services, value-oriented offerings, experiential concepts, and products or services tied to growing consumer priorities are generally better positioned to weather economic uncertainty and become successful, long-term occupants.

Do you remember when this space was listed for lease? It was an open canvas. Empty and plain.

Now, it’s completely changed!

If you haven’t already checked out Bookish Modesto, this is your sign to do so soon. They’ve created a fun, bright, creative, and welcoming place for ALL AGES!

!ROSEBURG SQUARE MODESTO! JUST LEASED.
We are excited to announce that we are getting a NEW addition to the center.
Gifted Lil’ Ones - on the spectrum - will be joining the Roseburg family. Offering a range of activities, sensory play, events, and more. Keep your eyes open for their grand opening!