The tenants landlords brag about, and those that actually make money for retail property owners, are two entirely different lists. A national logo looks great in an investor deck, but credit quality, build-out investment, lease term, and traffic generation are what actually pay off a mortgage. After ranking hundreds of retail leases across Chicagoland shopping centers and freestanding retail buildings, here is the real list, ranked from five to one.
The Real Ranking: Five Retail Tenants That Outperform The Logos
1. Nail Salons: The Amazon-Proof Tenant
There is one thing for sure, it is challenging to get a manicure on the internet. Nail salons survive recessions, survive e-commerce, and keep customers returning every two to three weeks like clockwork. The only reason they are not ranked higher is credit. The lease is usually backed by one operator and a dream, so landlords are underwriting the person, not the use. In practice, that means:
- Reviewing the operator’s track record at prior locations before signing
- Structuring security deposits and personal guarantees to offset thin corporate credit
- Recognizing that the use itself is one of the most durable in retail
2. Drive-Thru Coffee With A Corporate Signature
Notice this does not say drive-thru coffee franchise. The distinction matters. When the corporation itself signs the lease, the landlord gets institutional credit plus a traffic engine that lifts every tenant around it. Corporate-signed coffee is the retail equivalent of the net lease credit that institutional capital is chasing, a dynamic we broke down with Sean Hostert on Real Finds Podcast episode 105 on net lease investing. The tradeoff: sophisticated corporate tenants know exactly what they are worth, and their lawyers will remind you at every option window.
3. Veterinarians: Betting On America’s Pets
Americans will skip their own doctor appointment before they skip their pet’s. That is not a joke, it is a key economic reality of the modern consumer. Morgan Stanley projects total U.S. pet industry spending to reach $261 billion by 2030, with veterinary services among the fastest-growing categories. For landlords, the veterinary story gets better at the property level. Despite an often expensive build-out and a highly specialized office layout with surgical suites, kennels, and ventilation that do not transfer to other uses. Once a vet clinic opens, it basically never leaves.
4. Urgent Care And Medical Tenants: Rent Plus Marketing
Urgent care and medical office users bring long leases, frequently institutional credit, and something most retail tenants cannot: seven-day-a-week patient traffic. The Bureau of Labor Statistics projects healthcare and social assistance to be the fastest-growing industry sector through 2034, driven by an aging population and chronic care demand. Every patient visit is a potential lunch purchase, haircut, or nail appointment for the neighboring tenants. A medical tenant is not just rent. It is marketing for the entire center, and it is a big part of why service-anchored suburban retail keeps outperforming, a trend we explored in The Return of Main Street.
5. Dentists: The Granddaddy Of Retail Tenants
Most of these tenants are not glamorous, and this one is no different. No logo. Here is why dentists are number one. A dental practice typically invests $300,000 to $400,000 of its own money into the space: plumbing at every operatory, lead-lined walls for imaging, and specialized mechanical systems. The dentist signs personally, carries excellent credit, and stays 20 years because relocating a patient base is career risk. Logos impress your friends. Dentists pay off your mortgage.
The Chicagoland Angle: Where These Tenants Are Signing
This ranking is not theoretical in our market. Across Chicago, Lake County, DuPage County and the North Shore, medical and dental users are absorbing inline space in grocery-anchored centers. Along the Northwest suburbs and the O’Hare and I-90 corridor, corporate-signed coffee pads are commanding premium land pricing. In DuPage County and the I-88 and I-55 corridors, veterinary groups backed by consolidating platforms are competing for endcaps. In Will County and across southern Wisconsin communities like Pleasant Prairie, Kenosha, and Racine, service retail is following rooftop growth. The common thread: internet-resistant, credit-backed, traffic-generating tenants are winning the best spaces.
Five Moves For Retail Landlords Right Now
- Underwrite the operator, not just the use. For salon and service tenants, the person behind the lease is the credit.
- Chase corporate signatures, not franchise logos. The entity on the signature line determines whether you own credit or hope.
- Budget tenant improvement dollars for medical and dental users strategically. Their build-out investment is your retention mechanism.
- Price the co-tenancy value of traffic generators. A medical or coffee tenant should raise your rent expectations for adjacent spaces.
- Protect option windows. Sophisticated tenants negotiate hard at renewal, so build your rent growth assumptions accordingly.
What Comes Next
The next decade of retail belongs to services the internet cannot replicate: healthcare, personal care, pet care, and daily-habit food and beverage. Landlords who fill their centers with credit-backed, build-out-heavy, traffic-generating tenants will refinance on better terms, sell at tighter cap rates, and sleep better in the next recession. The logo era of retail leasing is over. The mortgage-payer era has begun.