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Newmark’s U.S. retail research team reports that the large 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 businesses are becoming attractive retail tenants, though its findings do not establish that every gym chain or market is growing.
Fitness chains are becoming sought-after retail tenants, according to a report from Newmark’s U.S. retail research team, which found that the largest gym and fitness chains it tracked recorded no major closures this year. Newmark estimates their stability kept between 8.1 million and 11.8 million square feet of retail space from going dark, a finding with implications for landlords seeking tenants that bring repeat visits.
The report, written by Newmark researchers Neal Ohm and Brandon Isner, says fitness clubs, recovery studios, spas and healthy-food operators are generating the steady, frequent visits that shopping centers once relied on big-box retailers to provide. The closure finding applies to the largest retail chains Newmark tracked; it does not mean that no fitness businesses closed across the wider industry.
Newmark also points to growth in health and beauty retail, a category the report says has nearly doubled its number of locations since 2018 and expanded at an 8.4% annual rate, faster than the other retail segments it tracks. Isner said the rate reached 11.8% since 2024. The report links the category’s appeal to foot traffic and longer visits, which can lead customers to visit other businesses in a retail center.
Among the concepts highlighted are “super-boutique” gyms that combine strength training, cardio, group classes and recovery in one location. Newmark names Sweat and Tonic and Animo as examples. The report attributes wellness’s momentum to post-pandemic habits, hotel-inspired design and, above all, community. It argues that memberships and repeat visits can make these businesses steadier tenants, but does not provide a chain-by-chain financial analysis in the supplied findings.
Why Wellness Draws Retail Landlords
For landlords, fitness and wellness tenants can offer regular customer visits and a reason for shoppers to spend time at a center, potentially supporting neighboring stores and services. Newmark’s argument is that a gym or studio can serve as a destination in its own right, rather than depending entirely on traffic generated by other retailers. The report describes recurring membership income and frequent visits as factors that may support tenant stability.
The leasing examples suggest the shift is visible in both new developments and established shopping districts. In Henderson, Nevada, VAC Development is converting a 10-acre office property into The Cliff, a planned $100 million open-air destination, with fitness studios among its first tenants. In Manhattan’s Tribeca neighborhood, FaceGym signed a reported 10-year lease for about 2,400 square feet. These cases show activity, but they do not by themselves establish how widely the trend has spread or how profitable such projects will be.
Newmark recommends that fitness and wellness brands invest in hospitality and community, and that landlords group complementary businesses such as fitness, recovery, spas and healthy food. If the model works, it could change how retail centers use space and select tenants. The report’s findings are a view of market activity, not a guarantee that every wellness concept will succeed or that the sector can replace all departing big-box tenants.
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From Gym Tenants to Wellness Clusters
The report describes a retail landscape in which fitness businesses are competing across low-cost, luxury and boutique formats. It also notes the emergence of larger boutique concepts that combine multiple services. Newmark says that community and repeat membership distinguish some wellness operators from businesses whose visits are less frequent, while hotel-like design has made gyms feel less utilitarian.
Other industry participants have made similar arguments for grouping related businesses. Homegrown, which provides expansion capital to brick-and-mortar companies, identified co-tenancy as one of 11 trends it expects to shape Main Street over the next decade. Its report describes combinations such as a Pilates studio, recovery lounge, skincare clinic and smoothie bar as businesses that can refer customers to one another. That is an industry forecast, rather than evidence that every such cluster has produced measurable gains.
Several announced projects illustrate the range of plans. In McLean, Virginia, Onelife Fitness plans to open a flagship at Tysons Galleria in late 2027, in the former Saks Fifth Avenue space. The operator, which has 76 locations open or in development, is also investing $24 million in a planned 65,000-square-foot club at Richmond’s Midtown64, a mixed-use project set to open in 2028. The club is slated to include recovery and Pilates facilities, a saltwater pool, hot tub and 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. 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
What the Retail Data Cannot Show
The source material does not specify the exact dates covered by Newmark’s phrase “this year” for major-chain closures, nor does it list every chain included in the tracking. The estimated 8.1 million to 11.8 million square feet refers to space Newmark says was kept from going dark; the supplied material does not explain the calculation method or provide a comparison with other tenant categories.
It is also unclear how evenly the trend is distributed by region, operator size or business model. Planned openings and leases do not show whether projects will open on schedule, reach expected customer levels or remain financially sustainable. The report describes the case for wellness tenants but does not establish that their visits or longer dwell times consistently produce higher sales for neighboring retailers.
Leases and Projects to Watch
The next visible milestones are the planned openings at Tysons Galleria in late 2027 and Richmond’s Midtown64 in 2028. The Cliff development in Henderson is another project to watch as it advances its planned mix of fitness, retail and food tenants. The supplied source material does not provide opening dates for all of its businesses.
For landlords and fitness operators, the report’s recommendations point toward continued attention to destination-style clubs and clusters of complementary services. Whether that strategy expands will become clearer through completed projects, leasing activity and operating results. Newmark’s current findings describe a tenant category gaining attention, while the scale and staying power of the shift remain to be demonstrated.
Key Questions
What did Newmark find about fitness-chain closures?
Newmark says the largest retail chains it tracked in fitness and gyms had no major closures this year. The report estimates that stability preserved 8.1 million to 11.8 million square feet of retail space, but the finding does not cover every gym or fitness business.
Why does Newmark say fitness businesses appeal to landlords?
The report points to frequent visits, membership revenue and longer customer stays. Newmark argues that these qualities can bring traffic to a center and benefit nearby businesses, though the source material does not quantify those effects for every location.
What are “super-boutique” gyms?
They are concepts that combine several types of services, such as strength training, cardio, group fitness and recovery, in one business. Newmark cites Sweat and Tonic and Animo as examples.
What developments are planned?
Onelife Fitness plans a Tysons Galleria flagship for late 2027 and a 65,000-square-foot club at Richmond’s Midtown64, part of a project expected to open in 2028. VAC Development is also planning The Cliff in Henderson, with fitness studios among the announced tenants.
Does the report prove wellness tenants are always more stable?
No. Newmark’s findings and recommendations describe why fitness and wellness operators may appeal to landlords, but they do not establish that every operator or project will succeed. The report’s closure finding is limited to the largest chains it tracked.
Source: athletechnews.com
