Retail real estate is undergoing a dramatic transformation. With e-commerce trends reshaping shopping habits, long-standing commercial property structures like shopping malls and indoor plazas are adapting in innovative ways. One rising trend is the incorporation of family attraction venues into large retail spaces.
These family-centric additions, ranging from mini-golf courses to arcade experiences and educational play areas, are breathing new life into properties that once relied solely on traditional retailers.
This post explores how family attraction venues are reshaping the retail real estate landscape, offering forward-thinking property investors solutions to stay relevant, increase foot traffic, and maximize their returns.
The Rise of Family Attraction Venues
Over the past decade, the demand for experiences over products has grown exponentially. Consumers, especially families, now prioritize places where they can entertain, engage, and experience something unique. Shopping malls, historically dominated by retail tenants, have evolved to accommodate this shift by repurposing spaces for interactive, family-friendly activities.
Why Are Family Attraction Venues Gaining Popularity?
Several factors are driving this demand for family-oriented attractions in retail real estate, including:
- E-commerce Competition: With many consumers shopping online for convenience, brick-and-mortar malls need to offer something unique that digital retailers cannot—experiences.
- Changing Consumer Expectations: Families expect more than just shopping; they want entertainment, dining, and leisure under one roof.
- Affordable Entertainment: For families, these venues provide a cost-effective day out compared to more expensive destinations like amusement parks.
- Year-Round Appeal: Unlike outdoor attractions, indoor family entertainment spaces thrive regardless of the weather, making them an evergreen investment for property owners.
Benefits to Commercial Real Estate Investment
The inclusion of family attraction venues in retail real estate isn’t just about filling empty space. It’s a strategic approach with clear advantages for commercial real estate investment.
1. Increased Foot Traffic
Family attractions draw a broad audience, including parents, children, and extended family. These attendees may initially visit the venue but are highly likely to explore other retail shops, dine at nearby restaurants, or engage with pop-up shops within the same complex.
Example:
Adding an indoor trampoline park or a creative play museum can bring in hundreds of families over a weekend, a noticeable spike for malls previously struggling with footfall.
2. Longer Dwell Times
Family attraction venues encourage visitors to stay longer. While children play or enjoy activities, parents often shop, dine, or unwind, boosting sales for other tenants in the property. Longer dwell times directly increase engagement levels across various retail and dining spaces.
3. Diverse Revenue Streams
Adding a family attraction venue opens access to alternative revenue models, such as rent-sharing agreements, ticket sales, and hosting collaborative events. Property investors can negotiate dynamic leasing terms, such as revenue-based rental agreements, helping them adapt to market trends more flexibly.
4. Repurposing Dark Spaces in Large Venues Such as Indoor Malls
Dead or underutilized spaces—commonly referred to as “dark spaces” in the industry—can be expensive inefficiencies on a property owner’s balance sheet. Family-focused ventures like aquariums, escape rooms, and small-scale adventure parks are highly effective for repurposing these spaces.
Case Studies: Family Attraction Venues in Action
To highlight how family attraction venues benefit commercial real estate, here are a few examples of successful integrations across the world.
1. Westfield London
The operators of Westfield London, one of Europe’s largest shopping malls, have integrated KidZania, an interactive mini-city for children. This attraction is now a major draw for families, significantly boosting traffic to the mall’s eateries and retail shops.
2. Mall of America, Minnesota, USA
Known as the king of experiential retail, Mall of America houses an indoor theme park, Nickelodeon Universe, which attracts millions of visitors annually. Retailers in the mall credit this venue for substantial sales growth.
3. Shoreditch Play Lab, England
Shoreditch implemented an interactive play lab in an outdated mall space, blending creative learning experiences with a retail gallery hosting local businesses. This innovative pairing rejuvenated the entire district and drew in both families and young professionals.
Challenges and Considerations
While family attraction venues offer an exciting future for retail real estate, property investors must be aware of the potential challenges.
1. Initial Investment Costs
Building or repurposing dark spaces to accommodate family venues can require significant upfront costs. From construction to safety compliance and ongoing maintenance, investors should be prepared for an initial financial commitment.
Solution: Consider collaborative leasing arrangements with operators, where profits are shared. Several family entertainment chains operate on revenue-share agreements with landlords to reduce risks.
2. Safety Regulations
Family attractions must adhere to rigorous safety standards to protect children and families. Meeting these requirements can be time-consuming and costly.
Solution: Partner with established family attraction operators who already have the expertise and certifications needed to meet compliance standards.
3. Balancing Tenant Mix
Converting too much retail space into attractions could upset the delicate balance of shopping, dining, and entertainment.
Solution: Ensure careful planning to integrate attractions alongside complementary tenants, creating a well-rounded experience for all visitors.
Future Trends for Family Attraction Venues
The rise of family attractions is far from a passing trend. Property investors and commercial landlords who invest ahead of the curve will likely benefit as family-centric entertainment continues to evolve.
- Hybrid Spaces: Expect more venues combining entertainment, dining, and shopping in a seamless flow.
- Digital Integration: Virtual reality arcades and augmented reality experiences are quickly becoming mainstream within these spaces.
- Customization: Targeted attractions that speak to local demographics will become a priority for retail space operators to increase relevance and profitability.
- Community Engagement: Family attractions with educational events, workshops, or cultural exhibits will draw diverse audiences while fostering stronger community connections.
Time to Transform Your Retail Space
The reshaping of retail real estate to integrate family attraction venues is more than a strategy—it’s a necessity in an age where experiences are king.
For commercial property investors, shopping mall operators, and landlords managing large spaces, adopting these trends now ensures a sustainable, profitable future.
Repurposing dark spaces into vibrant, interactive attractions not only revitalizes real estate but also helps foster long-term community engagement around your property, cementing its position as a must-visit destination.
Are you prepared to make the most of this exciting new trend? Start exploring how family attractions can help reshape your retail property into a thriving, multifunctional hub today.