Gyms Work Out at Retail Centers

NOVEMBER 18, 2019 | THE PALOMAR GROUP

Ten to twenty years ago, landlords did not want gyms in their shopping centers because they took up too many parking spaces. However, shopping center owners have changed their views on fitness centers as the retail landscape has shifted and Americans have become more health conscious. Now, grocery stores and gyms have become a natural fit. The number of fitness tenants in shopping centers has more than doubled, from 6,218 in 2008 to 14,044 in 2018, according to CoStar. Gyms drive traffic to retail centers, and they also attract wellness tenants, such as juice shops, vitamin stores and spas. Most old grocery leases had a restriction against gyms because they took up too much parking. Now that sentiment is changing but there are still old leases in place, landlords are having to go to these grocers and ask them to waive the restriction.