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Newmark’s U.S. retail research team says fitness chains recorded no major closures among the largest retail chains it tracked this year, helping preserve an estimated 8.1 million to 11.8 million square feet of retail space. The report argues that recurring memberships, frequent visits and community-focused offerings are making fitness and wellness operators attractive to landlords, though it does not provide a detailed forecast for future leasing.
Fitness chains recorded no major closures among the largest retail chains tracked this year by Newmark’s U.S. retail research team, the firm says, making gyms and fitness centers an increasingly attractive option for landlords seeking tenants that can keep retail space occupied and draw repeat visitors. Newmark estimates that the chains’ stability preserved 8.1 million to 11.8 million square feet of retail space.
The report, written by Neal Ohm and Brandon Isner, says fitness clubs, recovery studios, spas and healthy-food operators can provide the steady, frequent visits that shopping centers once relied on big-box retailers to generate. Newmark’s findings concern the largest retail chains it tracked; they do not establish that every fitness business avoided closures or that all retail centers are seeing the same demand.
Newmark also highlights growth in health and beauty, a category it says has nearly doubled its number of locations since 2018 and expanded at an annual rate of 8.4%, faster than other retail segments the firm tracks. Isner said that pace increased to 11.8% since 2024. He said the category has become sought-after by retail centers, with foot traffic growing faster than in industries such as fast food and groceries, and with longer visits that can encourage customers to visit nearby businesses. The report does not specify the measurement period or methodology behind those traffic comparisons in the supplied material.
The authors also point to “super-boutique” gyms that combine several services in one location. Their examples include Sweat and Tonic and Animo, described as single-format gyms bringing together strength training, cardio, group fitness and recovery. Newmark attributes the broader wellness trend to pandemic-era routines, more hospitality-inspired gym design and consumers’ demand for community, while framing these as explanations rather than independently measured causes.
Why Landlords Want Repeat Visits
For landlords, the report’s argument is that a fitness tenant can contribute more than occupied floor space. Membership revenue and recurring visits may make a club a steadier part of a retail portfolio, while customers’ time on site can create opportunities for neighboring shops, food businesses and services. These are Newmark’s conclusions about the value of the tenant category, not a guarantee that every gym will succeed or that nearby tenants will benefit equally.
The report connects tenant appeal with community and retention. A business that gives members a sense of belonging may have an advantage over one competing only on price, Newmark’s authors say. They argue that loyalty can matter to landlords because it may support the operator’s ability to retain customers and maintain its business. The source material does not provide tenant-level financial results or evidence that community positioning alone improves credit quality.
Newmark advises fitness and wellness brands to strengthen hospitality and community offerings, citing Life Time and Equinox as examples of businesses that have become destinations in their own right. For property owners, the report recommends clustering complementary uses such as fitness, recovery, spas and healthy food. If the pattern holds, it could affect how retail centers choose tenants and how developers plan mixed-use projects; the report does not quantify how widespread those changes already are.
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Wellness Clusters Take Shape
Examples cited alongside the report show how landlords and operators are putting the clustering idea into practice. 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 expected to share the project with furniture and lighting retailers and food, coffee and dessert businesses. These project details describe plans, not a completed development.
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 representing the deal. The brokerage said the company chose the location for its nearby fitness studios, luxury retailers and wellness businesses, as well as its residential customer base. That explanation is attributable to the broker, rather than an independently verified account of the tenant’s decision.
Other plans involve larger fitness facilities. Onelife Fitness, which the source says has 76 locations open or in development, plans to open a flagship at the former Saks Fifth Avenue site at Tysons Galleria in McLean, Virginia, in late 2027. The East Coast operator is also investing $24 million in a planned 65,000-square-foot club at Richmond’s Midtown64 development, scheduled to open in 2028. The club is to include recovery, reformer Pilates and pool facilities. Separately, the Homegrown report cited in the source identifies co-tenancy as one of 11 trends it expects to shape Main Street over the next decade, describing adjacent wellness businesses as able to market one another.
““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 supplied report summary does not give the full list of chains Newmark tracked, the precise period covered by “this year,” or the methods used to estimate the 8.1 million to 11.8 million square feet of retail space preserved. It also does not establish how the estimate was calculated or whether the space would otherwise have remained vacant.
The report’s category-level growth and traffic comparisons lack detailed measurement definitions in the supplied material. The results should not be read as proof that fitness operators are insulated from competition, closures or financial pressure. The status and timing of the cited developments also differ: some are signed leases or announced plans, while others are scheduled to open in future years.
Leasing Plans and Openings Ahead
The next concrete milestones in the examples cited are the planned openings of Onelife Fitness at Tysons Galleria in late 2027 and at Richmond’s Midtown64 development in 2028. The Cliff is also a development plan, but the source material does not state an opening date. Those projects will show whether the proposed mix of fitness, wellness, retail and food uses advances from leasing plans to operating destinations.
Newmark’s report recommends that brands invest in hospitality and community and that landlords consider grouping complementary wellness tenants. The supplied material does not identify a specific follow-up report, forecast or leasing target. Further evidence on occupancy, tenant performance and customer traffic would help establish whether the patterns described are broad market changes or mainly examples from particular operators and properties.
Key Questions
What did Newmark report about fitness-chain closures?
Newmark says the largest retail chains it tracked this year included no major closures among gyms and fitness centers. The firm estimates that this stability kept 8.1 million to 11.8 million square feet of retail space from going dark.
Why does Newmark say fitness operators appeal to landlords?
The report points to repeat visits, membership revenue and longer customer stays, which may support tenant stability and bring visitors to neighboring businesses. These are the report’s conclusions, not a guarantee of performance for every gym.
Which wellness businesses are included in the trend?
The report discusses gyms, fitness clubs, recovery studios, spas, health and beauty businesses, and healthy-food operators. It also highlights multi-service “super-boutique” gyms combining training, group classes and recovery.
What remains uncertain about the findings?
The supplied summary does not detail Newmark’s chain sample, the exact period meant by “this year,” or the methodology for its retail-space estimate and traffic comparisons. The findings do not show that all fitness businesses are growing or avoiding closures.
What developments are planned next?
Onelife Fitness plans a Tysons Galleria flagship for late 2027 and a club at Richmond’s Midtown64 development for 2028. The source also describes The Cliff in Henderson as a planned project but gives no opening date.
Source: athletechnews.com
