Hunton Retail Law Resource

The post-COVID real estate market has seen a surge in luxury gyms and fitness spaces.  Members are willing to shell out several hundred dollars a month for memberships at popular high-end fitness chains. These modern luxury gyms offer more than just workout spaces.  Many offer holistic lifestyle services such as spas, hair salons, social amenities, co-working spaces, and daycare. These luxury gyms are gaining larger footprints and emerging as a unique retail asset. In New York, some luxury fitness operators have expanded to dozens of locations and occupy significant retail footprints. As of early 2025, high-end fitness tenants in Manhattan collectively occupy more than 1.3 million square feet across dozens of locations, with some prime-site leases exceeding 50,000 square feet and extending for twenty years or more.

For landlords and developers, this evolution has created a unique tenant category offering distinct benefits and meaningful risk considerations.  Luxury gyms are usually upwards of 30,000 square feet with many exceeding 100,000 square feet, making them attractive anchor tenants for retail or mixed-use projects.  Many operators also sign long-term leases, sometimes 15–20 years, providing stable occupancy for landlords.  Additionally, many high-end gym users frequent these facilities multiple times per week, creating consistent daily traffic and driving customers to other businesses a landlord may lease in the surrounding area.  This frequent visitation can significantly benefit neighboring retailers, restaurants and service businesses in a large format retail center.

Additionally, landlords can utilize typically less-desirable retail space for gym space (i.e. basements, second floors, or older retail layouts) that are difficult to lease to traditional retailers.  This flexibility makes gym tenants especially valuable in urban redevelopment projects.  Warehouse-style and training-style gyms are particularly trendy and typically do not require the same level of finishes and amenities that luxury gyms require.  Luxury gyms can also serve as a building amenity that enhances residential or office leasing. Developers increasingly incorporate fitness operators into mixed-use projects to attract tenants seeking lifestyle-oriented amenities and environments.

Despite these benefits for landlords, luxury fitness tenants present unique operational and financial challenges.  High-end gyms and fitness centers require extensive plumbing, structural reinforcement, locker rooms, pools , and specialized equipment infrastructure.  In addition, gyms and fitness centers can present parking challenges, as many anchor and junior anchor tenants require size and distance restrictions. Landlords may need to provide significant tenant improvement allowances to make deals economically attractive for a potential tenant.  Compared to traditional retail, gyms often pay lower rent per square foot due to their large footprints and heavy operating costs.  Finally, if a large gym vacates, re-leasing the space can be difficult due to specialized buildouts.

Additionally, the fitness industry experienced significant stress during the COVID-19 pandemic, highlighting the potential vulnerability of gyms during a public health crisis.  Many consumers also view gym memberships as a primary target for budget cuts during an economic recession.

Despite these risks, luxury gyms continue to expand nationally in nearly all markets.  The fitness sector’s growth reflects a broader shift toward experiential and lifestyle-based retail.  For landlords, luxury-fitness tenants can serve as powerful anchors that activate space and attract high-income customers.  However, successful leasing deals require thoughtful lease structures and long-term property strategy.