How Restaurants Are Reshaping Retail Real Estate
BLOG // July 2025
How Restaurants Are Reshaping Retail Real Estate:
Why Food & Beverage Tenants Are Fueling Leasing Momentum
In commercial real estate, restaurants have long been valuable tenants — but today, they’ve become the main attraction. According to CRE Daily, 40% of all new retail leases nationally are going to restaurants.
This shift reflects broader changes in consumer behavior, leasing strategy, and what drives value in shopping centers and mixed-use developments. We asked two of our brokers to share what they’re seeing on the ground in St. Louis.
What’s Driving the Rise of Restaurants?
“I think right now diners are looking for a different experience,” says Tony Salerno, Broker at NAI DESCO. “St. Louis is seeing everything from themed pop-ups to immersive chef’s table events. And with the COVID lockdown behind us, there’s a bit of pent-up demand fueling sales.” As consumers seek experience-driven retail, restaurants deliver in ways traditional shops can’t — through energy, community, and connection.
How Restaurants Activate a Shopping Center
“The right restaurant has the potential to be one of the most valuable tenants in a shopping center,” says Emily Ackley, Broker at NAI DESCO. “They create experience, energy, and greater foot traffic. Your average dwell time across the center increases, and that benefits every tenant.” “Restaurants activate the center. A well-selected restaurant tenant creates momentum — they can be your retail catalyst.” In St. Louis, we’re seeing:
High demand for second-generation restaurant space Increased leasing in urban walkable districts and revitalized corridors Suburban shopping centers being reimagined with food-first tenant mixes
How Restaurants Are Reshaping Retail Real Estate:
Landlords increasingly view restaurants as centerpiece tenants because they:
- Bring consistent foot traffic from morning to evening
- Support neighboring tenants through extended visit times
- Generate curb appeal and brand identity
- Create repeat destination value
To secure these tenants, owners are adapting — offering tenant improvement allowances, outdoor dining options, or percentage rent deals to land the right concept.
Final Advice: Build Strategy Around Experience
This isn’t just a rebound story — it’s a retail real estate evolution. Restaurants are no longer just part of the mix — in many cases, they are the anchor.
At NAI DESCO, we’re helping clients align leasing, location, and tenant strategy to meet the moment. Whether you’re a landlord or operator, now is the time to consider how food & beverage can fuel long-term success.