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Across the U.S., the commercial real estate (CRE) landscape is being reshaped by a familiar challenge: traditional retail anchors are losing their pull. Department stores, big-box retailers, and even certain entertainment concepts that once guaranteed foot traffic are shrinking, closing, or renegotiating leases. In their place, an unexpected new anchor is taking root—private social clubs and membership-based lifestyle spaces.
From former mall wings and downtown storefronts to mixed-use developments and repurposed office assets, private clubs are emerging as a compelling strategy for owners and developers looking to stabilize occupancy, diversify revenue, and create destinations that keep visitors coming back.
Why Retail Anchors Are Fading
Retail anchors historically served one key purpose: drive consistent, predictable foot traffic. The anchor’s brand recognition and shopping volume supported smaller inline tenants—creating a retail ecosystem that worked for decades. But that model has been under pressure for years, and the strain intensified after the pandemic.
Key forces weakening the anchor model
- E-commerce growth continues to absorb sales that once flowed through department stores and large-format retailers.
- Consumer behavior has shifted from shopping as the destination to experiences as the destination.
- Over-stored markets in some regions have made it hard for legacy chains to maintain profitability.
- Rising operating costs (labor, insurance, utilities) have squeezed margins for large-footprint retailers.
- Lease renegotiations and downsizing have become common as retailers optimize their store fleets.
As anchors disappear, landlords are often left with large blocks of vacant space—spaces that can be expensive to demolish, reconfigure, or backfill with standard retail tenants.
Enter the New Anchor: Private Clubs
Private clubs—once associated mainly with elite city institutions—have evolved into a broad set of concepts. Today’s clubs range from high-end social membership brands to hybrid work-lounge models, wellness-focused clubs, sports clubs, and dining-driven membership venues.
What’s drawing CRE owners to these concepts is simple: private clubs sell belonging, convenience, and exclusivity—and they bring repeat visitation that traditional retail often struggles to match.
What counts as a private club in CRE today?
- Social clubs with restaurants, bars, event programming, and curated member communities
- Hybrid work clubs that blend coworking, hospitality, and networking
- Wellness clubs featuring fitness, recovery, spa services, and health programming
- Sports and lifestyle clubs (pickleball, golf simulators, rooftop courts, cycling studios) with membership tiers
- Members-only dining concepts that emphasize access, reservations, and curated experiences
For landlords, these clubs can function like a modern anchor—one that attracts high-intent visitors and supports adjacent tenants such as boutique retail, cafés, salons, and specialty services.
Why Private Clubs Work as Anchors
Replacing a department store with another giant retailer isn’t always realistic. But private clubs can absorb large spaces and transform them into sticky, experience-driven destinations. Their “anchor” value isn’t just about raw foot traffic—it’s about the quality and frequency of visits.
1) They create habitual traffic, not one-off shopping trips
Private clubs are designed for repeat use: morning workouts, mid-day meetings, evening dining, weekend social events. This creates a reliable cadence of visits that benefits surrounding tenants and helps stabilize the property’s overall energy.
2) They monetize experience in multiple ways
Unlike traditional anchors that rely heavily on retail sales, clubs often use a multi-revenue model:
- Initiation fees or membership enrollment fees
- Monthly dues
- Food and beverage sales
- Event rentals and private bookings
- Ancillary services (personal training, spa treatments, retail merchandise)
This diversity can make clubs more resilient, especially when consumer spending shifts between categories.
3) They differentiate mixed-use developments
In competitive urban and suburban markets, mixed-use projects often blur together: similar tenants, similar food options, similar design. A private club can become a signature amenity that boosts the perceived value of the whole development—especially when paired with residential units, hotels, or Class A office.
4) They align with third place demand
As remote and hybrid work persist, people increasingly seek a third place beyond home and office. Private clubs offer curated social environments that feel more intentional than coffee shops and more personal than traditional coworking.
Where Private Clubs Are Taking Over Space
The most visible shift is happening in shopping centers and malls, but private clubs are also finding opportunities in downtown corridors and office-adjacent districts.
Repurposed mall anchor boxes
Large, empty anchor spaces can be difficult to lease due to their size and layout. Clubs can transform these areas into multi-zone environments—fitness, dining, meeting rooms, lounges, and event spaces—often with upgraded entrances that reconnect the box to the rest of the center.
Street-level urban retail
In some downtown markets, ground-floor retail has struggled with inconsistent foot traffic. Private clubs can stabilize these blocks by driving consistent evening and weekend activity—especially when programming includes live events, speakers, tastings, and member mixers.
Office-to-amenity repositioning
In office-heavy districts, landlords are investing in amenity upgrades to compete for tenants. A private club concept—particularly one that blends hospitality and workspace—can become a leasing tool that supports office occupancy and tenant retention.
What Landlords and Developers Need to Consider
Private clubs are not a plug-and-play replacement. They come with operational complexity, build-out costs, and brand considerations. Before signing a lease, property owners should evaluate both the upside and the tradeoffs.
Operational intensity and build-out requirements
Many clubs require significant mechanical, electrical, and plumbing upgrades, plus specialized design elements (kitchens, locker rooms, soundproofing, ventilation). That means landlords must plan for:
- Higher tenant improvement (TI) negotiations
- Longer construction timelines
- Permitting complexity (especially for F&B and assembly use)
Brand fit and community reception
A private club can elevate a property—or feel exclusionary if positioned poorly. Successful placements match the concept to the market, demographic profile, and surrounding tenant mix. Clubs that embrace community programming and thoughtful design often integrate more smoothly than those that appear closed-off or overly status-driven.
Traffic patterns and parking
Clubs generate peak activity at different times than retail. Fitness may spike early morning; dining peaks in the evening; events may run late. Landlords should assess parking supply, lighting, security, and noise mitigation to avoid conflicts with nearby tenants or residents.
How This Shift Impacts the Rest of the Tenant Mix
The rise of private clubs as anchors can change leasing strategy across an entire property. Instead of building a tenant roster around high-volume retail, landlords may curate a blend of service, wellness, boutique retail, and experiential food that complements club members’ lifestyles.
Tenants that often benefit from club adjacency
- Health and beauty (med spas, salons, recovery studios)
- Premium quick service (high-quality grab-and-go lunch concepts)
- Boutique retail (athleisure, accessories, grooming, specialty goods)
- Professional services (financial advisors, real estate offices, boutique agencies)
Because club members tend to visit frequently and spend intentionally, surrounding tenants may see stronger conversion rates—even if overall foot traffic volume is lower than a traditional big-box anchor’s heyday.
The Future: Experience-Led Anchors Become the Norm
Private clubs won’t replace every failing department store or big-box tenant, and they won’t work in every market. But the trend signals something bigger: the definition of an anchor is changing.
As consumers prioritize social connection, wellness, and curated experiences, CRE owners are increasingly focused on uses that generate repeat visitation, community identity, and diversified income streams. In that context, private clubs—whether social, wellness-oriented, or hybrid work-lifestyle—offer a modern solution to a persistent problem.
In the next phase of U.S. commercial real estate, the winning properties may not be anchored by what people need to buy, but by where they want to spend their time.
Articles published by QUE.COM Intelligence via Yehey.com website.
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