TL;DR
Get wellness 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 fitness chains recorded no major closures among the largest retail chains it tracked this year, helping retain an estimated 8.1 million to 11.8 million square feet of retail space. The report says wellness operators are attractive to landlords because memberships and frequent visits can support steady traffic, though it does not provide a full comparison of tenant performance or leasing outcomes.
Fitness chains are emerging as sought-after retail tenants, according to a new report from Newmark, which says the largest gym and fitness chains it tracked recorded no major closures this year. The firm estimates that their stability kept 8.1 million to 11.8 million square feet of retail space from going dark, as landlords look to wellness businesses for recurring visits and traffic.
Newmark’s U.S. retail research team says fitness clubs, recovery studios, spas and healthy-food operators are taking on a role once associated with big-box retailers: bringing steady, frequent visits to retail centers. The report was written by Newmark researchers Neal Ohm and Brandon Isner. Its estimate of space kept open reflects the firm’s analysis of fitness-chain closures, rather than a reported count of newly leased space.
The report also describes rapid growth in the combined health and beauty category. Newmark says the category has nearly doubled its number of locations since 2018, with an 8.4% annual expansion rate, faster than any other retail segment it tracks. Isner, Newmark’s head of U.S. retail research, said the rate rose to 11.8% since 2024. He said these businesses can generate more foot traffic than fast-food and grocery operators and that longer visits may prompt customers to visit other businesses at the center.
Newmark points to a rise in what it calls “super-boutique” gyms: single-format clubs that combine strength training, cardio, group fitness and recovery. It cites Sweat and Tonic and Animo as examples. The report attributes the broader appeal of wellness spaces to changed workout habits after the pandemic, hospitality-inspired design and, above all, customers’ desire for community. These are the report’s explanations for the trend, not evidence that every fitness operator or shopping center will benefit in the same way.
Why Wellness Tenants Attract Landlords
For retail landlords, a gym’s value may extend beyond the rent it pays. A business that brings members back repeatedly can supply consistent visits and create opportunities for customers to spend time or money at nearby shops, restaurants and services. Newmark argues that community and recurring membership revenue can help fitness and wellness tenants retain customers and make them stabilizing assets in a retail portfolio.
The stakes are practical for both property owners and operators. Landlords are weighing which tenants can support a center’s traffic as retail uses change; fitness brands are competing for customers in a crowded market spanning low-cost gyms, luxury clubs and boutique studios. Newmark advises wellness brands to invest in hospitality and community, and suggests landlords group complementary uses such as fitness, recovery, spas and healthy food. These recommendations are the firm’s assessment, not a guarantee of leasing success or customer retention.
Clustering can also connect businesses whose customers overlap. Homegrown, a firm that provides expansion capital to brick-and-mortar companies, has separately described co-tenancy as a trend it expects to shape Main Street over the next decade. Its example links a Pilates studio, recovery lounge, skincare clinic and smoothie bar. The idea is that neighboring tenants can direct customers to one another, though the supplied material does not quantify the effect on sales or vacancies.
Products Worth Considering
BowFlex Results Series SelectTech Adjustable Dumbbells (Pair)
Fitbit Versa 2 Health and Fitness Smartwatch with Heart Rate, Alexa, Music, Sleep and Swim Tracking
Fitbit Inspire 3 Health and Fitness Tracker Bundle
As an affiliate, we earn on qualifying purchases.
New Projects Put Fitness in the Mix
Examples in the report show how the tenant trend is appearing in property plans and leasing decisions. In Henderson, Nevada, VAC Development is converting a 10-acre office property into The Cliff, a planned $100 million open-air destination. Fitness tenants Bodyrok and Pvolve are set to join furniture retailer Arhaus, lighting brand Visual Comfort and food, coffee and dessert businesses. The project illustrates a deliberate mix of wellness and conventional retail; the source does not state its opening date.
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, luxury retail and wellness businesses, including Equinox and Aire Ancient Baths. That explanation comes from the brokerage, not an independently reported statement from FaceGym.
Other plans involve larger clubs. 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 65,000-square-foot club at Richmond’s Midtown64 mixed-use development, scheduled to open in 2028. The planned facility is 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.””
— Brandon Isner, head of U.S. retail research at Newmark
Limits of the Retail Data
The supplied report summary does not give the number of chains tracked, define exactly what counted as a major closure, or detail how Newmark calculated the 8.1 million-to-11.8 million-square-foot estimate. It also does not provide the underlying data needed to compare gym performance with other tenant categories across the same period. The estimate should not be read as a measured increase in occupied retail space.
It is also unclear whether the reported health and beauty growth represents net new locations after closures or gross openings, and the source does not specify the full time window behind the 11.8% rate since 2024. The examples of planned projects and leases show activity, but do not establish that all announced developments will open as scheduled or that co-tenancy will increase sales. Newmark’s claims about traffic, customer retention and tenant credit quality are the firm’s analysis; detailed supporting measures are not included in the supplied material.
Leases and Openings to Watch
The next visible milestones are the planned openings in the developments named in the report. Onelife Fitness is targeting late 2027 for its Tysons Galleria flagship, while Midtown64 in Richmond is scheduled to open in 2028 with Onelife’s proposed club among its tenants. The source gives no opening date for The Cliff in Henderson.
For the wider retail market, future leasing and closure figures will show whether the stability Newmark describes continues beyond the chains it tracked this year. Additional details about the report’s methodology, category measurements and performance of wellness clusters would help clarify how broadly its conclusions apply. For now, the report makes a case that gyms and related businesses can serve as recurring-visit tenants, while the scale and durability of that advantage remain to be tested.
Key Questions
What did Newmark report about fitness chains?
Newmark says the largest gym and fitness chains it tracked this year recorded no major closures. It estimates that this stability kept 8.1 million to 11.8 million square feet of retail space from going dark.
Why does Newmark consider fitness businesses attractive retail tenants?
The firm says gyms and wellness operators can bring members in frequently, while recurring memberships may support customer retention. Newmark also argues that longer visits can lead customers to visit other businesses in the same center.
How fast is the health and beauty category growing?
Newmark says the category nearly doubled its number of locations since 2018 and expanded at an 8.4% annual rate. Brandon Isner said the rate climbed to 11.8% since 2024; the supplied material does not specify the exact measurement window for that figure.
What fitness projects does the report cite?
Examples include Bodyrok and Pvolve at the planned Cliff development in Henderson, FaceGym’s 10-year Tribeca lease, and Onelife Fitness projects at Tysons Galleria and Richmond’s Midtown64. Some are planned or under development, not completed openings.
Does the report prove that wellness tenants improve retail-center performance?
No. Newmark presents an argument that fitness and wellness tenants can support traffic and tenant stability, but the supplied material does not include enough underlying data to establish that every center or operator will see those results.
Source: athletechnews.com
