How the new weight-loss drugs are impacting real estate and beyond. It’s not exactly Chaos Theory — a butterfly flaps its wings in Brazil causes a tsunami in Japan — but market shifts in one area can have an unexpected profound effect on real estate.
The growing popularity of weight-loss drugs like Ozempic, Wegovy and Mounjaro — known as GPL-1s — is expected to impact consumer behavior and subsequently influence commercial real estate trends, CoStar reported.
Here are four potential ways in which these weight loss drugs could influence real estate decisions:
- Decline in fast-food sales: Weight-loss-drug users may reduce spending on fast food by about 85 percent, prompting questions about how fast-food restaurants can adapt their offerings, which could impact real-estate footprints.
- Drop in alcohol sales: Individuals on these drugs might make a 60-70 percent reduction in their alcohol consumption, impacting liquor retailers, pubs and restaurants.
- Shift in snack and soda preferences: Spending on snacks may decrease by 80 percent, and soda consumption may drop by 70 percent, potentially leading to increased spending at alternative venues like juice bars.
- Increased demand for fitness and apparel space: A shift towards a healthier lifestyle post GLP-1 usage could result in higher demand for spaces such as gyms, spa and beauty retailers, and apparel stores as consumers seek to support their new lifestyle.
My Real Estate Thoughts
I agree with some of the above assumptions outlined by CoStar. Seemingly small consumer decisions, like purchasing habits, can have substantial implications for real estate investors.
I know I’m over-weight and have already started cutting back on sodas and drinking more juices. But I’m hesitant to try these drugs, I still think there could be some long-term side effects that haven’t a risen yet. However, don’t be surprised by this time next year I’ll be on one of these weigh loss drugs.
In the meantime, I’ll stick to my tried…