A family vacation to Disney World has gotten so expensive that Americans are increasingly opting for lower-cost, local entertainment offerings that still deliver shared experiences. And that shift is driving a wave of demand that's reshaping retail real estate, according to JLL.
The brokerage released a report, "Game On! Entertainment Report 2026," at ICSC's retail real estate conference in Las Vegas on Monday. The study found that "location-based entertainment has crossed from amenity to primary tenant category."
JLL's database "tracked 4,746 existing locations across 207 concepts, with a 16.5 million square foot pipeline," according to the report. Entertainment uses are filling more space than they’re giving back — outpacing many traditional retail categories, JLL said.
Part of that surge in demand is being fueled by Americans who still want to enjoy shared activities outside of the home but can't afford the soaring price tags that some theme parks charge.
"For a budget-conscious family of four, three days at Disney World now costs $2,783 before airfare or a rental car," the JLL report said, citing an April NerdWallet analysis.
"For roughly $35 a person, the same family can spend an afternoon at Slick City Action Park, Sky Zone, or one of dozens of newer concepts opening at a local power center," JLL said. "They will not get Cinderella's castle, but they will get trampolines, climbing walls, rope courses, a birthday party room, and a story to tell at school on Monday."
This behavior reflects the bifurcation of U.S. consumers and "thematically, it fits right in with this idea of the barbell economy," JLL said. Wealthier households are able to spend on expensive trips, and financially pinched families are looking for less expensive options, according to the report.
"Pricier, highly themed concepts cluster in [central business districts], Class A malls and lifestyle centers, while more affordable concepts are expanding in open-air centers and freestanding buildings," JLL's report said.
The report's author, James Cook, director of research for JLL retail, acted as discussion moderator Tuesday at the ICSC media breakfast where officials from the brokerage, including Naveen Jaggi, president of retail advisory services, discussed its findings.
JLL identified eight categories of expanding entertainment concepts:
- Family entertainment centers,1,717 locations such as Dave & Busters.
- Trampoline parks and kid zones, 1,355 locations like Sky Zone and Urban Air Adventure Park.
- Competitive socializing, 913 locations like Puttshack.
- Escape rooms and challenge rooms, 430 locations like Escape the Room and Level99.
- Virtual reality, 83 locations like Sandbox VR and Zero Latency VR.
- Art installations and selfie museums, 59 locations like Museum of Ice Cream and Meow Wolf.
- Arcade bars, 55 locations like 6-Bit Bar + Arcade.
- Esports, 55 locations like Contender Esports.
"Trampoline parks and kid zones are the single largest pipeline driver," JLL said in its report. "With 355 announced locations across 43 concepts representing 59% of all planned square footage, the category is the clearest expression of the repeat-visit spending mode."
Vacancies of 25,000 to 50,000 square feet are expected to attract the most new leasing activity from entertainment tenants, according to JLL. The midsize category of space "accounts for 38% of pipeline locations and roughly 10 million square feet of demand, a footprint well-suited to backfill big box vacancies and partial anchor replacements that remain abundant in many markets," the report said.
In addition, large empty retail spaces like "former theaters and department store segments will remain viable targets for entertainment expansion," according to JLL.
Game space coming to more malls
One of the up-and-comers in the escape-and-challenge room category is Level99, the report said. Each location, spanning 40,000 to 45,000 square feet, features more than 50 challenges. One of its most popular games is Axe Run, where "players attempt to speed along a 20-foot-wide balance beam while avoiding a series of large axes that swing back and forth, alternately blocking the runner's path," JLL said.
The concept is backed by a $50 million investment from Panera founder Ron Shaich's Act III Holdings. Its four existing locations include one at a former Sears at the Natick Mall in Massachusetts and one in a former J.C. Penney at Providence Place in Rhode Island, according to JLL.
The report said that Level99 is also coming to Westfield Garden State Plaza at a former Forever 21 in Paramus, New Jersey, a former J.C. Penney at the King of Prussia mall in Pennsylvania, and a former NBA Experience space at Disney Springs in Orlando, Florida.
JLL also cited examples of what it called immersive entertainment, including the Netflix House venues that have debuted in King of Prussia, in a former Lord & Taylor, and at Galleria Dallas in a former Belk anchor store.