Private Clubs Are Becoming Retail’s New Anchor Tenants

February 5, 2026

By: Wiss Team

Wiss Team

“This is largely a national trend right now, and we’re not seeing it meaningfully take hold across New Jersey yet. That said, as more malls and large shopping centers are repurposed, concepts like private clubs could become part of the conversation in the right markets with the right demographics.”

– Caitlin Macaluso, Partner, Real Estate, Wiss

The economic math of American retail real estate is changing. Where department stores once anchored shopping centers, private membership clubs are increasingly filling premium square footage—and bringing something traditional retailers can’t: guaranteed repeat traffic.

The Numbers Behind the Shift

Highland Park Village in Dallas charges members $7,000 to join Park House, plus $292 monthly. Miami’s Moore House in the Design District requires a $5,000 upfront fee and over $400 in monthly fees. Cincinnati’s Social House costs $4,000 to join. These aren’t country clubs—they’re retail center tenants offering dining, curated products, coworking spaces, and, as one developer called it, “a hub of activity.”

The trend extends beyond coastal markets. Grand Rapids, Michigan, is converting a 55,000-square-foot vacant building into The Commerce Club, scheduled to open in November 2026. Co-founder Jeff Lambert notes that five years ago, the city couldn’t have supported such a concept. “The entrepreneurial class in the city has reached a critical mass,” he said.

Why Landlords Want Them

R.J. Hottovy, head of analytical research at Placer.ai, identifies the appeal: “They appeal to high-end consumers. The idea is it’s another place, a status symbol. It is exclusivity.” But beyond cachet, clubs solve practical landlord problems.

Charlie Koniver, principal at Odyssey Retail Advisors, puts it simply: “The more amount of time a human being stays on a property, the more money they will spend.” A typical anchor store might draw customers twice weekly. Private clubs generate multiple visits per week from the same members, along with their guests.

Daniel Spiegel, senior vice president at Coldwell Banker Commercial, notes clubs offer “longer-term leases, consistent foot traffic during off-peak hours, and members with discretionary income that benefits surrounding tenants.” They’re appearing in properties from traditional malls like Scottsdale Fashion Square to stand-alone developments.

The Economic Context

The timing isn’t coincidental. Jia Li, associate professor of marketing at Wake Forest University, explains that clubs help malls “fill vacant anchor spaces or underutilized upper floors” while generating “steady and recurring traffic.” For high-end centers, clubs enhance rather than dilute brand positioning.

Post-pandemic data from Placer.ai shows diners increasingly gravitating toward country clubs over restaurants—a preference for what Hottovy calls “safe spaces” for gathering. Private clubs tap that same psychology while occupying commercial real estate that might otherwise sit empty.

Sam Vise, CEO of Optimum Retailing and a Soho House member, observes that clubs “introduce a built-in, high-frequency customer who values experience, community, and time spent on site—all things traditional retail has struggled to deliver on its own.”

The Risks

Private clubs aren’t immune to market cycles. Soho House, perhaps the most recognizable club brand, went public in 2021 and pursued aggressive expansion. It’s now being taken private at roughly the same valuation—a cautionary tale about scaling membership models too quickly.

The economics require specific market conditions. Build-out costs are substantial, and clubs need “sufficient density and demographics,” according to Spiegel. They’re not appropriate for every vacant Sears box or struggling mall. Koniver notes they work best in centers “that don’t have traditional anchors.”

Greg Zakowicz, an ecommerce and retail advisor at Omnisend, frames the trend as an extension of existing consumer behavior among high-income households already accustomed to golf clubs, swim clubs, and airport lounges. But he doesn’t see clubs as essential for long-term retail survival: “With retail, styles and preferences change, and concepts like this are sure to evolve with them.”

What This Means for Commercial Real Estate

The shift reflects broader changes in retail property valuation. Success increasingly depends on experience-driven tenancy rather than pure transaction volume. Properties that attract and retain clubs attract stable, long-term tenants with built-in traffic.

David Loranger, assistant professor at Sacred Heart University, suggests the trend may be “a byproduct of the K-shaped economy, with many Americans holding stock portfolios and in professional lines of work able to afford luxuries.”

The question for commercial real estate investors isn’t whether private clubs will replace all retail—they won’t. It’s whether your property can support the demographics, whether the surrounding tenant mix benefits from high-frequency, high-income traffic, and whether the math works for a tenant category that requires significant capital investment but offers predictable returns.

As traditional retail anchors continue fading, property owners are discovering that the right membership club can be worth considerably more than another department store.

Strategic Real Estate Advisory for Property Portfolios

Major tenant category shifts create both opportunities and valuation risks. Wiss’s Real Estate Advisory Services help property owners, developers, and investors evaluate tenant mix strategies, analyze demographic feasibility, and structure deals that maximize property performance. Whether you’re repositioning a retail portfolio or evaluating club tenancy proposals, our team provides the financial modeling and strategic advisory you need.

Contact Wiss Real Estate Advisory to discuss your commercial property strategy.

Editorial Note: This article provides general information about commercial real estate trends and does not constitute investment, legal, or tax advice. Property owners and investors should consult with qualified advisors regarding specific investment decisions and tenant strategies. Wiss & Company LLP provides accounting, tax, and advisory services to commercial real estate owners, developers, and investors.