TL;DR
Get workout gear delivered free with Prime
- Fast, free delivery on millions of items
- Prime Video, Amazon Music and more included
- Member-only deals all year
Newmark’s retail research team says the largest fitness chains it tracked had no major closings this year, a period of stability it estimates preserved 8.1 million to 11.8 million square feet of retail space. The report also points to rapid growth in health and beauty and recommends that fitness brands and landlords build around hospitality, community and complementary wellness uses.
Fitness chains are becoming sought-after retail tenants, according to a report from Newmark’s U.S. retail research team, which says the largest gym and fitness chains it tracked recorded no major closings this year. Newmark estimates that the stability kept 8.1 million to 11.8 million square feet of retail space from going dark, giving landlords an alternative to big-box tenants that have struggled to remain open.
The report, written by Newmark researchers Neal Ohm and Brandon Isner, describes gyms, fitness centers, recovery studios, spas and healthy-food operators as sources of frequent customer visits for retail centers. The estimate of preserved space is Newmark’s assessment; the source material does not provide a breakdown of the chains counted or the calculation behind the square-footage range.
Health and beauty operators have expanded even faster, according to Newmark. The category has nearly doubled its number of locations since 2018, growing at an annual rate of 8.4%, the report says. Isner said the pace reached 11.8% since 2024. Newmark says these businesses can generate higher foot traffic than fast-food and grocery operators, while longer customer visits may encourage shoppers to visit nearby businesses.
The report also highlights a rise in “super-boutique” gyms, which combine several services in one concept. It names Sweat and Tonic and Animo as examples of single-format gyms that bring together strength training, cardio, group fitness and recovery. Newmark attributes growth in wellness spaces to habits formed during the pandemic, more hospitality-inspired design and, above all, consumers’ desire for community.
Why Wellness Tenants Matter to Centers
For retail landlords, the report’s central point is that a fitness or wellness tenant can provide more than leased space. Recurring memberships and frequent visits may help create a regular customer base for a center, while longer stays can lead visitors to shop, eat or use other services nearby. That makes fitness an increasingly relevant option for owners seeking tenants that can draw their own traffic.
Newmark argues that a sense of belonging can also support tenant retention and financial stability. These are the report authors’ conclusions, not guarantees for individual operators: the source material does not provide lease-performance data or compare fitness tenants’ default rates with other retail categories. Still, the trend matters to retailers and property owners deciding how to use space as traditional big-box stores change or close.
The strategy is visible in both new developments and existing retail districts. In Henderson, Nevada, VAC Development is converting a 10-acre office property into The Cliff, a planned $100 million open-air destination. Its announced fitness tenants, Bodyrok and Pvolve, will sit alongside furniture and lighting retailers and food and drink businesses. The mix reflects the idea that complementary uses can help direct customers between tenants.
Products Worth Considering
Hyperice Hypervolt Go 3 Portable Percussion Massage Gun with Carry Case
Therabody Theragun Relief Massage Gun – Black
Fitbit Versa 2 Health and Fitness Smartwatch with Heart Rate, Alexa, Music, Sleep and Swim Tracking
As an affiliate, we earn on qualifying purchases.
From Chain Stability to Wellness Clusters
Newmark’s findings come amid competition among fitness businesses, including the growth of boutique concepts and a split between lower-cost and luxury gym models. Rather than saying every fitness operator is secure, the report focuses on the absence of major closures among the largest retail chains it tracked. Its estimate of space preserved is tied to that finding and should not be read as a measure of all gyms or all retail properties.
Newmark’s recommendations extend beyond fitness operators. It advises brands to invest in hospitality and community, and points to Life Time and Equinox as examples of brands that have grown into primary destinations rather than relying on a shopping center’s existing draws. For landlords, it suggests grouping complementary uses such as fitness, recovery, spas and healthy food.
Other market participants have promoted similar clustering. Homegrown, which provides expansion capital to brick-and-mortar businesses, identified co-tenancy as one of 11 trends it expects to shape Main Street over the next decade. Its report describes a potential lineup of Pilates, recovery, skincare and smoothie businesses as a linked set of tenants that can promote one another. In Manhattan’s Tribeca neighborhood, FaceGym signed a 10-year lease for about 2,400 square feet at 110 Reade Street, according to brokerage Platinum Commercial, which said the brand chose the location for its nearby fitness, retail and wellness businesses and residential base.
Large gym projects offer another example. Onelife Fitness, which the source says has 76 locations open or in development, plans to open a flagship at Tysons Galleria in McLean, Virginia, in late 2027, in the former Saks Fifth Avenue space. The company is also investing $24 million in a planned 65,000-square-foot club at Richmond’s Midtown64 development, scheduled to open in 2028. That club is set to include recovery, reformer Pilates, a saltwater pool, a hot tub and a cold plunge.
“The category has become a sought-after tenant for retail centers and has been growing foot traffic at a higher rate than industries such as fast food and groceries. Additionally, dwell times are often longer, which encourages cross-visitation to other stores and services in the center.”
— Brandon Isner, head of U.S. retail research at Newmark
Limits of the Retail Findings
The source material does not give the Newmark report’s full methodology, the list of chains included in its tracking, or the time period meant by “this year.” The estimate that fitness stability preserved 8.1 million to 11.8 million square feet is attributed to Newmark, but the underlying assumptions are not supplied here. The report’s foot-traffic and tenant-stability conclusions also do not establish that every gym or wellness concept will succeed.
Project timelines may change. The source describes The Cliff as a development in progress and gives planned opening dates for Onelife’s Tysons Galleria and Midtown64 clubs; it does not confirm that those projects have opened. Details about the report’s release date and any later revisions are also not provided.
Planned Openings and Leasing
The next visible milestones are the planned projects cited in the report: Onelife Fitness’s Tysons Galleria flagship is expected to open in late 2027, while its Midtown64 club in Richmond is tied to a development scheduled to open in 2028. The Cliff is another planned example of a property combining fitness with retail, dining and other uses, though the source does not give an opening date.
For the wider market, the report points to continued leasing and property planning around wellness clusters. Whether that approach brings durable gains will depend on future openings, customer demand and the performance of individual tenants. No additional forecasts or new leasing figures are provided in the source material.
Key Questions
What did Newmark report about fitness chains?
Newmark says the largest retail fitness chains it tracked had no major closings this year. It estimates that this stability kept 8.1 million to 11.8 million square feet of retail space from going dark.
Why do landlords want fitness and wellness tenants?
Newmark says these businesses can bring customers to retail centers frequently, with longer visits that may lead to traffic at neighboring stores and services. The report also points to recurring membership revenue, though it does not say every operator has the same financial performance.
Which retail category grew fastest in Newmark’s findings?
Newmark says health and beauty nearly doubled its number of locations since 2018, with an annual growth rate of 8.4%. The report says the pace was 11.8% since 2024; the source material does not provide further methodological detail.
What does the report mean by a “super-boutique” gym?
It describes a single-format gym combining services such as strength training, cardio, group fitness and recovery. Sweat and Tonic and Animo are cited as examples.
When are the Onelife Fitness projects expected to open?
The Tysons Galleria flagship is planned for late 2027. The Midtown64 development in Richmond, which will include a planned Onelife club, is scheduled to open in 2028; the dates are plans reported in the source, not confirmations that the clubs are operating.
Source: athletechnews.com
