Beauty and wellness businessesβranging from pilates and yoga to cosmetic stores, medispas, saunas, and cold plunges, collectively known as the ‘beauty and wellness economy’βare emerging as new core tenants, filling the spaces vacated by restaurants and traditional retail stores in the LA retail real estate market.
According to a recent report by real estate services firm CBRE, consumer spending related to professional fitness, cosmetics, and medispas increased by over 53% from $86 billion in 2020 to $132 billion in 2025. In particular, CBRE’s analysis of CoStar data showed that in the second quarter of this year, industries related to the so-called ‘vanity economy’ accounted for 37.5% of retail space leased nationwide.
These changes appear to be even faster in LA. West Hollywood alone has about 20 pilates studios. A former fabric and wallpaper showroom on Melrose Avenue was replaced by the yoga and pilates studio Silver Springs. Despite private lesson fees reaching $42 and monthly memberships hitting $350, classes are frequently sold out, demonstrating massive popularity.
Industry insiders analyze that social media and a growing interest in health are accelerating this trend. In particular, as more consumers choose to spend money on exercise and health management instead of spending time in bars or nightclubs, membership wellness clubs are partially taking over the social spaces previously occupied by nightlife venues.
The proliferation of weight-loss treatments is also having an impact.
According to Bernstein Research, the domestic usage rate of GLP-1 surged from about 6% in 2024 to 15% in 2025. CBRE views this as one of the factors that accelerated the growth of the beauty and wellness market.
This shift presents new opportunities for K-beauty as well. Domestic consumers spent $2.0 billion on K-beauty products last year. CBRE analyzed that Korean and other overseas beauty brands often choose LA and the Western region as their primary gateway for entering the domestic market.
Korea’s Olive Young opened its first domestic store in Pasadena last May, followed by its second store in Westfield Century City in June.
The presence of K-beauty is also growing at The Grove. Since 2021, beauty, skincare, fashion, and luxury brands have accounted for 38% of pop-up marketing events held there.
Korean brand Laneige transitioned into a permanent store after five pop-up runs, and a recent ‘Live Seoul’ event hosted by Lotte Home Shopping and KOTRA saw 43 Korean beauty brands participate simultaneously.
In the LA retail real estate market, which struggled with rising vacancies after COVID-19, an era has truly begun where ‘what experience and management you provide’ rather than ‘what you sell’ dictates leasing demand.
