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Newmark’s U.S. retail research team reports that the largest fitness chains it tracked had no major closures this year, helping preserve an estimated 8.1 million to 11.8 million square feet of retail space. The report says fitness and wellness operators are drawing frequent visits and, in some cases, longer stays, making them attractive tenants for retail centers. It does not establish that every fitness business is growing or that the trend applies equally across markets.
Newmark’s U.S. retail research team says fitness chains are emerging as sought-after tenants for retail centers, reporting that the largest gym and fitness operators it tracked had no major closures this year. The firm estimates that this stability kept 8.1 million to 11.8 million square feet of retail space from going dark, giving landlords a reason to look beyond traditional big-box stores for reliable foot traffic.
The report, written by Newmark researchers Neal Ohm and Brandon Isner, groups fitness clubs with recovery studios, spas and healthy-food businesses as operators that can bring people to shopping centers regularly. It argues that repeat visits and longer stays can benefit neighboring tenants as customers cross-visit other stores and services. The estimate of preserved space concerns closures among the largest retail chains tracked; it is not a count of all gyms or a measure of the sector’s total growth.
Newmark also points to the expansion of the combined health and beauty category. It says the category has nearly doubled its number of locations since 2018, growing at an annual rate of 8.4%, faster than other retail segments the firm tracks. Isner said the pace rose to 11.8% since 2024. The source does not specify the precise period used for that latter rate or provide a breakdown separating fitness from other health and beauty businesses.
The report highlights “super-boutique” businesses that combine several offerings, including strength training, cardio, group classes and recovery. It names Sweat and Tonic and Animo as examples. Newmark attributes demand for wellness spaces to post-pandemic routines, gym designs influenced by hospitality, and the appeal of community. Those are the report authors’ explanations, not findings that every consumer or location shares the same preferences.
Why Landlords Want Wellness Tenants
For property owners, the report’s argument is that fitness businesses can contribute more than rent: memberships generate recurring revenue for operators, while regular classes and visits may support activity across a retail center. Longer visits could give customers more opportunity to use nearby services, although the report does not quantify how much neighboring retailers benefit or show that every fitness tenant produces the same effect.
Newmark says an operator with a strong community may retain members more effectively than a business competing on service price alone. The authors describe these operators as “stabilizing assets” in a retail portfolio. That is the report’s assessment of their potential value to landlords, not a guarantee of tenant creditworthiness or protection from closures. For shoppers and local businesses, the shift could mean more retail projects organized around fitness, recovery, personal care and food rather than relying on a single large anchor store.
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From Gyms to Retail Anchors
The report’s tenant argument reflects a change in how some fitness brands position themselves. Newmark points to Life Time and Equinox as examples of operators that have grown into destinations in their own right, rather than tenants dependent on a shopping center’s other draws. It advises fitness and wellness brands to invest in hospitality and community, and suggests landlords group related uses such as training, recovery, spas and healthy food.
Other industry examples illustrate the approach but do not establish how widespread it is. Homegrown, a provider of 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 neighboring Pilates, recovery, skincare and smoothie businesses as mutually reinforcing. In Henderson, Nevada, VAC Development is converting a 10-acre office property into The Cliff, a planned $100 million open-air destination with fitness tenants Bodyrok and Pvolve alongside retailers and food businesses.
In Manhattan, brokerage Platinum Commercial said FaceGym signed a 10-year lease for about 2,400 square feet at 110 Reade Street in Tribeca. The brokerage said the brand selected the site for its nearby fitness, retail and wellness businesses and its residential customer base. At Tysons Galleria in McLean, Virginia, Onelife Fitness plans a flagship in the former Saks Fifth Avenue space, with an opening planned for late 2027. The company also plans a 65,000-square-foot club at Richmond’s Midtown64 development, which is set to open in 2028.
““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, Newmark’s head of U.S. retail research
How Broad the Trend Really Is
The report’s stability finding applies to the largest retail chains Newmark tracked; the source does not provide the full list, the number of operators included or a definition of “major” closure. Its estimate of 8.1 million to 11.8 million square feet is attributed to Newmark, but the source material does not explain the calculation or specify the comparison period. It should not be read as a measure of all fitness-related space or proof that the industry has no closures.
It is also unclear how much the reported category growth reflects gyms specifically, since Newmark describes health and beauty as a combined category. The source provides no location-level occupancy, rent or foot-traffic data to show whether fitness tenants outperform other uses in every market. Planned openings and developments may change, and the examples cited do not establish that each project has opened or that its business model will succeed.
Planned Clubs and Lease Growth
The next observable milestones are the planned openings cited in the report: Onelife Fitness at Tysons Galleria in late 2027 and its Midtown64 club in Richmond, where the development is scheduled to open in 2028. The Cliff in Henderson is another example of a project designed to combine fitness, retail and food uses, though the source does not provide an opening date.
For the broader trend, future evidence would include additional leases, completed openings and updated Newmark figures on chain closures, locations and space. The report offers advice for brands and landlords, but does not announce a policy change, provide a forecast for the whole sector or say how many new fitness tenants retail centers will secure.
Key Questions
What did Newmark report about fitness-chain closures?
Newmark says the largest retail chains it tracked had no major fitness-chain closures this year. The source does not identify every chain included or define “major.”
How much retail space did Newmark estimate was kept occupied?
The firm estimates that the lack of major closures kept 8.1 million to 11.8 million square feet of retail space from going dark. The source material does not detail the estimate’s calculation.
Why does Newmark say fitness businesses appeal to landlords?
The report points to recurring memberships, frequent visits and potentially longer stays, which may bring customers to neighboring stores and services. These are the report’s stated advantages, not guaranteed results for every tenant or center.
Does the report show that all fitness businesses are growing?
No. Its no-major-closures finding is limited to the largest chains Newmark tracked. The report also gives growth figures for a combined health and beauty category, not fitness businesses alone.
What fitness projects are planned?
Onelife Fitness plans a Tysons Galleria flagship for late 2027 and a club at Richmond’s Midtown64 development, scheduled to open in 2028. The source also describes planned fitness tenants at The Cliff in Henderson, without giving its opening date.
Source: athletechnews.com
