Amid loosening COVID restrictions and a generalized desire to return to in-person interactions, the fitness industry is one of the clear winners, according to the New York Times.
Gyms Become Popular Tenants in the Post-Pandemic World
The COVID pandemic ushered in an age of isolation where most activities, from work to fitness, took place at home. Now that the virus seems to be loosening its grip on our society, consumers are eager to return to the gym, a phenomenon with important implications for the commercial real estate industry.
According to data cited in an article published earlier this week by the New York Times, monthly visits to gyms between March and August rose more than 18% compared to the same period in 2019.
The number of new gym memberships also increased, with sales per square foot a gyms up 34% in August from a year earlier.
This represents a welcome reversal of fortunes for the health industry, one of the hardest hit by the pandemic. According to data from the Global Health and Fitness Association, as of July 1, 2021, 22% of gyms and studios had permanently closed their doors
Boutique Studios and Budget Gyms Thrive
Data shows that the segments with the strongest expansion are located at opposite ends of the spectrum available to consumers: boutique studios, on one hand, and budget gyms that offer basic equipment, on the other.
The desire for in-person interactions and communal experiences, as well as the need to shed the pounds gained during the pandemic are translating into a measurable commercial real estate boom.
According to data from CBRE cited by the New York Times, space that is newly occupied by fitness centers increased to more than 4.5 million square feet in the first quarter of 2022 from about 2 million at the end of 2021.
Interested in making sense of the CRE industry in the post-pandemic world? Check out our previous blog, “US Manufacturers Are Reshoring Their Production Lines.”
Disclaimer: This material is for general information and educational purposes only. It is not guaranteed as to accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions.
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