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Newmark’s U.S. retail research team says the largest fitness chains it tracked had no major closures, preserving an estimated 8.1 million to 11.8 million square feet of retail space. The report describes fitness and wellness businesses as increasingly attractive to landlords for their recurring memberships, frequent visits and potential to draw customers to nearby tenants.
Fitness chains are becoming sought-after retail tenants, according to a report by Newmark’s U.S. retail research team, which found that the largest gym and fitness operators it tracked had no major closings this year. Newmark estimates that stability kept 8.1 million to 11.8 million square feet of retail space from going dark, a finding that matters to landlords seeking reliable tenants and regular customer visits.
The report, written by Newmark researchers Neal Ohm and Brandon Isner, says fitness clubs, recovery studios, spas and healthy food operators are taking on a role once commonly associated with big-box retailers: bringing people to retail centers regularly. It presents the absence of major fitness-chain closures among the tracked group as a contrast with the difficulties faced by some other large retail chains. The report does not claim that all fitness businesses are stable or that no individual locations have closed.
Newmark also points to 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 any other retail segment the firm tracks. Isner said the rate rose to 11.8% since 2024. He said the category has grown foot traffic faster than fast food and grocery businesses, while longer visits can encourage customers to visit other stores and services. Those figures and comparisons are Newmark’s assessment; the source material does not provide the underlying location counts or a detailed methodology.
The authors also identify a rise in “super-boutique” gyms that combine strength training, cardio, group classes and recovery. They cite Sweat and Tonic and Animo as examples. Newmark attributes the sector’s appeal to workout and wellness habits that persisted after the pandemic, gym designs influenced by luxury hospitality and, above all, customers’ desire for community. The report argues that memberships and frequent visits can support tenant retention and make these operators more dependable components of retail portfolios.
Why Landlords Want Wellness Tenants
For retail property owners, a fitness tenant can contribute more than its own rent: recurring memberships and regular visits may create traffic for nearby businesses. Newmark says longer dwell times in health and beauty can support cross-visitation, while community-oriented gyms may give customers a reason to keep returning. These are the report’s stated advantages, not a guarantee that every wellness tenant will succeed or raise sales for neighboring stores.
The shift also affects how landlords and developers think about tenant mix. Newmark advises fitness and wellness brands to invest in hospitality and community, and suggests landlords group complementary uses such as gyms, recovery services, spas and healthy food. If those businesses reinforce one another, a center may be able to draw visitors around wellness as a destination, rather than relying solely on its traditional anchor stores.
The trend has practical stakes for consumers and businesses as well. A greater presence of fitness and wellness operators can add services close to homes and workplaces, while co-location may make it easier for smaller brands to reach customers. The report does not establish how widespread that access is, or whether the model works equally well in different markets.
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From Gym Closures to Wellness Clusters
Newmark’s findings come amid competition within the fitness industry, where boutique concepts are multiplying and operators are positioned across low-cost and luxury segments. The report’s focus is not only on gym growth: it describes a wider group of health and wellness uses competing for space in shopping centers and mixed-use developments. Its central argument is that consistent visits and member loyalty can make these tenants attractive in a retail environment where some traditional large-format stores have struggled.
Examples cited in the source illustrate how that idea is being applied. In Henderson, Nevada, VAC Development is converting a 10-acre office property into The Cliff, a planned $100 million open-air destination. Pilates-inspired studio Bodyrok and low-impact strength brand Pvolve are among its first fitness tenants, alongside furniture and lighting retailers and food businesses. The source describes the project as under development; it does not give a completion 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 nearby fitness, retail and wellness businesses and residential base. In Virginia, Onelife Fitness plans to open a flagship at Tysons Galleria in late 2027 in the former Saks Fifth Avenue space. The company has 76 locations open or in development, according to the supplied report. It is also investing $24 million in a planned 65,000-square-foot club at Richmond’s Midtown64 development, which is expected 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. 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 source material does not specify the publication date of Newmark’s report, the full list of chains included in its tracking, or how the firm calculated the estimate of 8.1 million to 11.8 million square feet preserved. It also does not give the underlying location counts behind the health and beauty growth rates, or explain the comparison method for its foot-traffic claims. The reported absence of major closures applies to the largest chains Newmark tracked, not necessarily to independent gyms or the fitness sector as a whole.
Several developments cited are plans rather than completed openings. Onelife’s Tysons Galleria flagship is planned for late 2027, and the Midtown64 club is tied to a development expected to open in 2028. The source does not provide updated construction schedules, lease terms beyond the FaceGym deal, or evidence that these projects have opened. Newmark’s claims about traffic, dwell time and tenant stability are research conclusions; the material provided does not include independent verification or results from the named projects.
Planned Clubs and Retail Projects
The next developments to watch are the projects still in the pipeline: Onelife Fitness’s Tysons Galleria flagship, scheduled by the company for late 2027, and its club at Midtown64, part of a Richmond project expected to open in 2028. The Cliff in Henderson is another example of a planned development bringing fitness uses together with retail and food businesses, though the source gives no opening date.
For landlords and operators, the report’s recommendations point toward more attention to wellness clusters and customer experience. Whether that strategy produces lasting traffic or stronger tenant performance will depend on the projects’ execution and local demand. The supplied material does not identify a further Newmark update or a scheduled follow-up study.
Key Questions
What did Newmark report about fitness chains?
Newmark said the largest retail chains it tracked in the gym and fitness category 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.
Why are fitness and wellness businesses attractive to landlords?
Newmark points to recurring memberships and frequent visits, which may bring steady customer traffic to retail centers. Longer visits can also lead customers to visit nearby businesses, according to the firm.
What does the report mean by a super-boutique gym?
The report uses the term for a single-format gym combining services such as strength training, cardio, group fitness and recovery. It names Sweat and Tonic and Animo as examples.
Are the retail and gym projects mentioned already open?
Not all of them. FaceGym signed a 10-year lease in Tribeca, while Onelife Fitness plans a Tysons Galleria opening in late 2027 and a Richmond club at a development expected to open in 2028. The source does not say those planned clubs are open.
Does Newmark’s report show that all fitness businesses are growing?
No. The finding about closures applies to the largest chains Newmark tracked, and the report does not establish that every gym or fitness operator is stable. It also does not provide detailed methods or independent verification for all of its traffic and growth comparisons.
Source: athletechnews.com
