Answer extracted from The Crexi Commercial Real Estate Podcast — listen to the full episode below.
How are entertainment venues transforming shopping centers post-pandemic?
Entertainment experiences like Netflix House, Topgolf, Nerf experiences, VR installations, and baseball batting facilities are increasingly replacing traditional food and beverage tenants in shopping centers. Landlords are now co-investing capital to bring these entertainment attractors to their properties, viewing them as critical points of differentiation in a competitive retail landscape while meeting people's growing desire for community and human connection in an increasingly digital world.
Entertainment as a retention strategy
The shift away from traditional retail anchors has forced shopping center operators to rethink tenant mix entirely. Entertainment venues have emerged as powerful alternatives that drive foot traffic and dwell time in ways that pure retail cannot replicate in the post-pandemic era. These experiences go beyond passive shopping, offering active engagement and memorable moments that keep visitors returning to physical destinations.
As Paul Kurzawa explains in The Crexi Commercial Real Estate Podcast, landlords are making strategic capital commitments alongside entertainment operators to ensure these attractions succeed. This co-investment model signals a fundamental shift: properties are no longer viewed merely as real estate portfolios, but as community gathering spaces where experiential value drives long-term asset performance.
Why landlords are betting on shared experiences
The financial case for entertainment is straightforward: a destination that feels alive and offers reasons to visit beyond shopping commands higher rents and tenant retention. Entertainment anchors create a halo effect, bringing in consumers who might otherwise shop online. Family-oriented venues like Dreamplay, which operates interactive family entertainment centers featuring DreamWorks properties, demonstrate how experiential real estate fills the space left by declining department stores.
The deeper motivation, however, is psychological. In an increasingly digital world, people are actively seeking opportunities for authentic human connection and shared experiences. This insight into how entertainment reshapes community gathering spaces is explored further in the episode, where Kurzawa discusses how placemaking—creating meaningful human connections within physical destinations—has become the defining competitive advantage for retail destinations.
"It means the connection that a person makes with that place. It's probably the magic that helped retail survive the pandemic."
Paul Kurzawa — Chief Executive Officer, Centennial. With more than 25 years of experience across lifestyle, open-air, and enclosed retail environments, Kurzawa specializes in redevelopment and placemaking. His landmark projects include the $660 million redevelopment of Willis Tower in Chicago and major mixed-use developments including the Americana at Brand and Westfield Century City. He has held senior leadership roles at The Blackstone Group, Westfield, Caruso, and DreamWorks Animation.
What makes this strategy sustainable is that entertainment venues operate on predictable revenue models—memberships, admissions, time-based pricing—unlike traditional retail, which relies on transaction volume that can fluctuate with economic cycles. This reliability makes entertainment tenants attractive to landlords as long-term anchors, justifying the upfront capital investment.
See also
What is Dreamplay and how does it address the challenge of vacant department store space?
Dreamplay is a 50,000 square foot kinetic interactive family entertainment center featuring DreamWorks properties like Kung Fu Panda and Shrek, offering an alternative use for vacant department stores in shopping centers.
How did DreamWorks Animation approach the reinvention of shopping center holiday experiences?
Kurzawa worked with DreamWorks to redesign Santa's cottage by replacing the exterior with digital screens for animation and creating a seven-room experience that transformed traditional holiday activations into immersive entertainment.
What is the core definition of placemaking in retail real estate according to industry veterans?
Placemaking is about the true human connection a person makes when entering a retail destination, beyond just branding or merchandise mix—it is the magic that helps retail survive challenging periods and drives long-term success.
Key takeaways
- Entertainment venues like Netflix House, Topgolf, and VR installations now occupy retail space previously held by food and beverage tenants.
- Landlords actively co-invest capital alongside entertainment operators to differentiate their properties and justify premium positioning.
- Entertainment anchors create predictable revenue streams and extended dwell time compared to traditional retail.
- These experiences directly address consumer demand for authentic human connection and community gathering in an increasingly digital world.