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Newmark’s U.S. retail research team reports that gyms and fitness centers recorded no major closures among the largest retail chains it tracked this year. The firm says their stability preserved an estimated 8.1 million to 11.8 million square feet of retail space, while health and beauty businesses have expanded rapidly and wellness tenants are attracting landlords’ interest.
Fitness chains recorded no major closures among the largest retail chains tracked this year, according to a new report from Newmark’s U.S. retail research team. The firm estimates that the stability kept 8.1 million to 11.8 million square feet of retail space from going dark, as landlords increasingly consider gyms and wellness businesses attractive tenants.
The report, written by Newmark researchers Neal Ohm and Brandon Isner, says gyms and fitness centers have held their ground amid competition from boutique concepts and a split between low-cost and luxury operators. Its closure finding applies to the largest retail chains Newmark tracked; it does not establish that all gyms avoided closures or that every fitness operator is expanding.
Newmark also points to growth in the combined health and beauty category, which it says has nearly doubled its number of locations since 2018. The category expanded at an 8.4% annual rate, outpacing the other retail segments the firm tracks, according to the report. Isner said that rate rose to 11.8% since 2024. The report says these businesses can bring frequent visitors and longer dwell times to retail centers, potentially prompting shoppers to visit nearby stores and services.
The researchers identify fitness clubs, recovery studios, spas and healthy-food operators as sources of regular foot traffic. They also highlight “super-boutique” gyms, including Sweat and Tonic and Animo, which combine formats such as strength training, cardio, group classes and recovery in one operation. The report attributes wellness growth to changed routines since the pandemic, hotel-inspired design and consumers’ interest in community.
Wellness Tenants Bring Repeat Visits
For shopping-center owners, the report’s case is that gyms and wellness businesses can serve as more than occupants of vacant space. Membership revenue and frequent visits may provide a steadier customer flow than businesses that rely on occasional purchases. Longer stays could also create opportunities for shoppers to visit other tenants, though the report does not quantify that spillover or establish that every fitness location increases neighboring sales.
That potential helps explain why Newmark describes wellness operators as sought-after tenants. The researchers argue that a business built around a community may retain customers differently from one selling a service that a cheaper competitor can readily replace. For retailers and developers, the trend may support leasing plans that group fitness, recovery, spa and food offerings together rather than treating each as an isolated use.
It also gives operators a reason to invest in the experience surrounding a workout. Newmark advises fitness and wellness brands to focus on hospitality and community, and cites Life Time and Equinox as examples of companies that have become destinations in their own right. That is the report’s business assessment, not a guarantee that a particular club or retail project will succeed.
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Retail Projects Add Wellness Clusters
Examples cited in the report show how the trend is appearing 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 first two announced fitness tenants are Pilates-inspired studio Bodyrok and low-impact strength brand Pvolve. The project is also expected to include furniture and lighting retailers, food businesses, coffee and dessert operators.
In Manhattan’s Tribeca neighborhood, FaceGym signed a 10-year lease for about 2,400 square feet at 110 Reade Street, according to Platinum Commercial, the brokerage that represented the deal. The brokerage said the brand selected the location for its residential customer base and proximity to boutique fitness studios, luxury retailers and wellness businesses, including Equinox and Aire Ancient Baths.
Other plans involve larger spaces. Onelife Fitness, which 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 mixed-use development, expected to open in 2028. The club is planned to include recovery facilities, reformer Pilates and a saltwater pool with a hot tub and cold plunge.
The report’s emphasis on clustering aligns with a separate view from Homegrown, which provides expansion capital to brick-and-mortar businesses. Homegrown named co-tenancy among 11 trends it expects to shape Main Street over the next decade, describing neighboring wellness operators as potential sources of cross-promotion. That is a forecast from Homegrown, not a finding that every cluster will generate more sales.
“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 Data
The source material does not give the Newmark report’s publication date, the full list of chains included, or detailed methods behind the estimate of 8.1 million to 11.8 million square feet preserved. It also does not specify the precise period covered by “this year.” The finding should be read as applying to the large chains Newmark tracked, rather than the entire fitness industry.
The report presents foot traffic, longer visits and community as reasons for landlords’ interest, but the available account provides no underlying traffic measurements, tenant-retention figures or comparisons of sales at centers with and without fitness operators. It is also unclear how many of the development plans and openings described will proceed on their stated schedules. Planned projects and leases show activity; they do not by themselves confirm completed openings or commercial performance.
Planned Clubs Await Opening Dates
The next visible milestones are the planned openings at Tysons Galleria in late 2027 and Midtown64 in 2028, along with development of The Cliff in Henderson. The source material does not report an opening date for FaceGym’s Tribeca location. Future updates will show whether the announced projects open as planned and whether wellness clusters deliver the repeat visits and cross-shopping that Newmark says make them appealing to landlords.
Key Questions
What did Newmark report about fitness chains?
Newmark says gyms and fitness centers recorded no major closures among the largest retail chains it tracked this year. The firm estimates that this stability kept 8.1 million to 11.8 million square feet of retail space from going dark.
Does the report say all gyms are growing?
No. The closure finding concerns the largest chains Newmark tracked, and the source does not provide a count of all fitness businesses. It does not establish that every gym is stable or expanding.
Why are landlords interested in wellness tenants?
Newmark says fitness clubs and related wellness businesses can encourage frequent visits and longer stays, with the potential to send shoppers to other businesses in a center. The report does not provide data quantifying the sales impact on neighboring tenants.
What wellness developments are planned?
Plans cited include Onelife Fitness at Tysons Galleria in late 2027 and a club at Richmond’s Midtown64, expected to open in 2028. VAC Development is also planning The Cliff in Henderson, while FaceGym signed a 10-year lease in Manhattan’s Tribeca neighborhood.
Source: athletechnews.com
