Retail as Experience, Not Square Footage
For decades, the formula for retail real estate was straightforward. Space was leased, rent collected, and stability was the ultimate marker of success. That model continues to serve its purpose, but as customer behaviour shifts, the definition of ‘value in property’ evolves.
Today, the real driver of portfolio performance is not reliant on how many units are filled, it’s how well those units attract, engage, and retain customers. Retail is no longer about square footage, it’s about experiences.
Landlords who are embracing this shift are already seeing it reflected in yield.
From rent rolls to shopper rolls
The traditional model rewarded consistency. A long-term tenant paying rent on time, equals predictable income and steady yields. Yet in practice, this approach often leaves landlords vulnerable: empty units waiting for the “right” long lease, declining footfall in homogenous centres, and portfolios disconnected from a new generation of shoppers.
Consumers, especially younger cohorts, are driving a fundamental change. By 2030, Gen Z will represent 27% of global income (BCG). However, this group shops differently. They are digital-first, selective, and far less motivated by the old markers of prestige in retail. For them, a store has to earn attention. With the continued popularity of short-format content, the attention span of consumers has naturally lowered. In a continual search for a dopamine hit, this low attention span has translated into shopping habits as well as daily life.
Recent studies suggest Gen Z shops in physical retail spaces 2–3x less frequently than older demographics unless there’s an experience attached. A static store filled with racks of product doesn’t cut it anymore. A space that offers events, workshops, activations, or unexpected collaborations? That’s a destination. Much like the platforms we are engrossed by, Gen-Z are after constant change and revolving retail - something stagnant spaces do not offer - a more traditional store or landlord simply does not have the ‘physical scroll’ to keep up.
For landlords, this distinction is critical. Because value is increasingly defined by customers themselves: if they’re coming, engaging, transacting, and spending more time on site, that’s what drives yield.
The Yield Equation: Why Experience Matters
Yield is, ultimately, what every landlord is chasing. And experience-led retail directly impacts it in three key ways:
- Increased dwell time. Research from Westfield shows that immersive activations can lift dwell time by up to 40%. More time spent equals more spend, not just in the activation space, but across the asset.
2. Portfolio uplift. A single buzzworthy unit can lift sales across neighbouring tenants, as everyone benefits from the halo effect, strengthening landlord negotiating power when leases renew. New and exciting brands, with strong social media followings are ideal targets to breathe new life into an asset, attract new shoppers and essentially increase the value per square foot in the same amount of space.
Tenant pipeline. Pop-ups and residencies act as a live testing ground. A brand that proves its traction in a 3-month activation is a stronger long-term tenant, de-risking the landlord’s pipeline.
This is where the conversation about value becomes more precise. It’s not just about keeping a unit occupied. It’s about ensuring the activity inside actively drives long-term value creation across the asset.
Selfridges has redefined what a department store concession can be. The Corner Shop, a revolving immersive space for brands from Fendi to Nike, consistently creating moments of cultural relevance. Customers return not just to shop, but for the experience, even for those without the budget to shop with Selfidges, the space in itself is enough to attract varied demographics. That repeat visitation translates directly into portfolio resilience.
Luxury brands are increasingly experimenting outside of traditional postcodes. Gucci’s Shoreditch pop-up was a deliberate move to reach a younger, creative demographic. The activation didn’t just generate sales, it shifted perception of the area, boosted local footfall, and underscored how short-term residencies can elevate non-traditional retail zones.
Launched as a pilot, CO.LAB brought together 146 brands in a modular, ever-changing concession space designed aroundexperience. Alongside retail, the programme integrated regular activations, from trunk shows to workshops, which consistently drove 30%+ sales spikes during event periods. Some brands achieved up to 12x ROI, proving that when retail is combined with engagement, the impact multiplies. For the centre, the project introduced new demographics, created a buzz in an otherwise traditional environment, and established a pipeline of potential long-term tenants.
Local Hero was conceived as a plug-and-play boutique that wasalways new— a space where shoppers could return every month and find fresh experiences. Beyond the constantly rotating retail line-up, the concept was anchored by activations: from pop-up beauty bars to live styling sessions. Within its first month, the space secured six months of forward bookings and generated thousands of digital impressions, converting 5–10% into qualified tenant leads. For Ingka Centres, the value wasn’t just in transactions, but in future-proofing the asset by building a pipeline of tomorrow’s anchor tenants, while giving shoppers a reason to keep coming back.
THE SOCIAL MULTIPLIER EFFECT
One of the least understood, but most valuable, outcomes of experiential retail is its social amplification.
Younger consumers are natural content creators. Every engaging activation is photographed, shared, and circulated across TikTok and Instagram. That organic amplification is effectively free marketing for the landlord.
In some cases, the earned media value of a single brand residency has outstripped the rental fee. That reach doesn’t just promote the brand, it elevates the profile of the location itself, reinforcing its position as a destination.
This social multiplier effect is one of the most overlooked levers for value creation growth.
THE FUTURE PLAYBOOK
We’re witnessing structural forces at play: rising retail rents, historically low vacancies, and growing appetite for flexibility among landlords. In the office sector, 63% of landlords already plan to expand flexible offerings, a trend that’s spreading into retail. Within five years, I’d expect that a majority of forward-looking retail landlords will be running some variation of revolving retail platforms, not because it's trendy, but because it’s becoming essential to optimize yield, speed up leasing cycles, and future-proof portfolios.
The benefits are too clear to ignore:
- De-risk voids.
- Build a future tenant pipeline.
- Increase NOI by driving traffic, spend, and yield uplift.
For landlords, the question isn’t whether the model works. The question is: how quickly can you integrate it into your portfolio strategy?
Closing Thought
Retail success can no longer be measured only by how much square footage is leased. It must be measured by how much excitement is generated.
Because in today’s market, experiences aren’t a side show. They are the main stage for yield growth.
Want to explore how short-term retail could activate your space?
Get in touch at info@lonedesignclub.com or book a demo to see how our platform supports agile retail strategies, flexible leasing, and brand partnerships that drive results.