Broadway and television actress Jenny Radke wasn’t keen on joining health clubs or attending fitness classes. have known for a long time.
However New Life Time Health Club in Lower Manhattan At the Kids Academy, a 10,000-square-foot space where you can leave your 19-month-old daughter for puzzles and other developmental activities, while you do Pilates, jog on the treadmill, or unwind with a hydromassage. won.
“She has a little yoga mat so she can do what mommy does,” said Mrs. Radke, who is known as a pro. Jenny Laroche‘I’m going into ‘me’ time. ”
As coronavirus pandemic restrictions ease and people return to in-person activities, Decrease in reported Covid cases Since last year, they’ve been making gym beelines, eager to shed the extra pounds they gained during lockdown. We welcome them.
According to data from Placer.ai, which tracks retail foot traffic, monthly visits to gyms from March to August increased more than 18% from the same period in 2019. New members also picked up, with gym sales per square foot up 34% year-over-year in August, roughly in line with 2019, according to Datex Property Solutions, a software company that tracks retail properties. CEO Mark Sigal said.
This enthusiasm reflects the exhaustion and exploration of communal experiences through individual workouts. popular during lockdown – favorite peloton bike – teeth lose favor.
Fitness clubs and gyms were forced to close early in the pandemic, followed by capacities, and then a wave of variations in which people became wary of huffing and puffing near others. We were attacked, but we are prepared for this moment. Well-capitalized chains are taking advantage of recessionary rents caused by the pandemic to expand, with operators reconfiguring spaces to add accommodations for older baby boomers as well as children. .
The new space occupied by fitness centers has grown from about 2 million at the end of 2021 to more than 4.5 million square feet in the first three months of this year, said Brandon Isner, head of retail research, and will outpace other types of retail. outperforms entrepreneurs. For the Americas at his CBRE, a real estate services company.
Budget gyms offering basic equipment and cheap memberships are doing especially well, as are boutique exercise studios on the other end of the spectrum that specialize in niche regimens like boxing and barre.
According to a recent report from research firm IBISWorld, the fitness industry as a whole is expected to grow 4.2% this year.
Chris Craytor, president of IHRSA, a trade association for the fitness industry, said:
But questions remain about the existential threat posed by remote exercise routines, especially as women return to institutions later than men. It can be attributed to people looking for a new fitness home.
Crater said some operators are still experiencing a “hangover” from deals they made with landlords during the pandemic, and many gyms continue to pay late rent. “Operators are trying to get out of these difficulties,” he added.
In the years leading up to the pandemic, retail real estate was sluggish due to the rise of online shopping. However, the fitness business was on a bright spot with growing awareness of the role of exercise in overall health.
By 2019, there were 41,370 fitness facilities in the United States, with 64.2 million members, according to IHRSA. Yet, only 20% of the population used gyms.
In the early months of the pandemic, temporary gym closures cut off revenue. Operators have struck deals with landlords to preserve space and add remote and on-demand classes to retain members. Yet a quarter of gyms have closedand some chains declared bankruptcy.
According to Datex, rent collection rates have steadily increased this year, reaching over 93% in August, but still below the same month in 2019.
However, the real estate aspect of running a health club is always tricky.
Most businesses rent space, and finding a property that ideally has high ceilings and no free-standing columns has never been easier. Additionally, the space required for a full-service health club is typically between 15,000 and 50,000 square feet, and some luxury facilities may require more.
Not all landlords participate either. Some worried that members would monopolize parking spaces in shopping centers and malls, or that tenants would undertake major renovations that landlords would have to help finance.
The problem is compounded in cities where health clubs often rent space in high-rise buildings. The landlord was concerned that the clatter of weights and thumping music would disturb other tenants and require costly soundproofing.
Brandon L. Singer, CEO of retail brokerage MONA, said:
But the pandemic has left many office landlords with record vacancies, making health clubs more accessible. Owners of older buildings are rushing to offer modern perks to compete with newer properties, looking for businesses such as health clubs that they believe will help attract tenants.
“Years ago, 90% of the club’s pipeline was us calling landlords and developers,” said Perham Javaheri, Chief Property Development Officer at Life Time. $249 monthly membership. “Now at least 50% of his work is from inbound interest.”
Health club operators may be rethinking locations in light of the trend of working from home, according to industry experts.
Before the pandemic, the downtown business district was attractive to gyms because commuters could exercise before or after work. Many employees are now in the office fewer days a week and may prefer to join a club closer to home, if at all.
Fitness clubs are open in shopping centers and can generate foot traffic that benefits other tenants. On average, a retailer in a shopping center with a gym receives 2.5% more visits per month than the same retailer location in a center without a fitness business, according to Creditntell, which analyzes location and financial data. .
Mall owners are also expanding their reach to fitness companies. Including co-working, housing and experiential retail serviceslooking for tenants to take over the empty large stores.
Inside the Club, operators are creating more open areas, reflecting lingering concerns about contagion. many people ride bicycles Other outdoor exercise in lockdown.
At the same time, many facilities are adding new equipment for older members, such as air-powered resistance training equipment. Remote and on-demand fitness continues to be popular with some groups, so operators are installing cameras to record classes.
Gymzi in Miami Beach caters to social media influencers with tripods, ring lights and a mile of LED lighting, said company chief executive Carlos Engidanos. “Every nook and cranny to take pictures will be a great spot,” he said.
There is also an emphasis on communal spaces where members can hang out or work on their laptops.
Of course, boutique fitness businesses require less space overall. Studios range from 1,500 to 5,000 square feet, are inexpensive, and easy to get up and running quickly.
“It’s a whole different thing to be rolling on a rowing machine and having a desk in front of you,” says Barry Scardina, retail expert at Cushman & Wakefield.
Xponential Fitness, the franchisor of boutique brands such as Rumble Boxing, has 2,100 studios across the United States. One of its fastest growing brands is devoted to stretchingsessions start at $49 for 50 minutes.
But low-cost, no-frills gyms are also doing well. Planet Fitness — which has 2,324 stores, mostly in US shopping centers — added 300,000 members in the second quarter of this year.
Sam Rogers, a recent college graduate, joined the company’s gym in Portsmouth, New Hampshire, in June and was drawn to the $10/month membership. “I won’t break the bank,” he said.
He also likes the atmosphere of no attitude. He runs on the treadmill and shifts to free weights while others do their own training at their own pace.
“You just go in, do your thing and go,” he said.
