The Rise of Fitness and Wellness in Retail Spaces

In recent years, there has been a striking transformation in how consumers are prioritizing their spending, particularly when it comes to health and wellness. As we delve into the latest trends in retail leasing, one thing is clear: fitness and wellness aren’t just fads; they’re becoming a central part of our lifestyle.

A Significant Shift

According to data from CoStar reported by the Wall Street Journal, service-oriented tenants—including gyms, fitness studios, and spas—accounted for over 50% of total retail square footage in the U.S. last year. This marks the first time that service-based tenants have outperformed traditional goods-based retail in leasing. Just 15 years ago, service-oriented businesses represented about 40% of the total retail landscape.

Brandon Svec, CoStar’s national director of U.S. retail analytics, highlighted this trend, stating, “Consumer dollars remain firmly pointed at services, with no signs indicating a shift in consumer behavior.”

The E-commerce Influence

This rise of service-based tenants may partly be influenced by the growth of e-commerce. As consumers increasingly shop online for items like clothing and accessories, the demand for physical storefronts has diminished. This shift allows more people to invest their time and money into wellness-oriented spaces.

The Expanding Wellness Market

The booming wellness sector isn’t surprising when you consider its rapid growth. The Global Wellness Institute recently reported that the wellness market has reached a value of $6.8 trillion, doubling since 2013 and achieving a remarkable growth rate of 7.9% from 2023 to 2024. This trend shows no sign of slowing down, as even staples like bars and restaurants are seeing a decrease in consumer spending.

Interestingly, what used to be material goods like high-end handbags as status symbols are now being replaced by wellness spending. Many consumers are drawn to longevity treatments and innovative wellness offerings, such as state-of-the-art sauna and cold plunge facilities.

Urban Developments in Wellness

In metropolitan areas like Manhattan, fitness and wellness spaces are flourishing. Over the past two years, brands have leased nearly 100,000 square feet in the Flatiron and NoMad neighborhoods. Here, boutique fitness studios and wellness centers have become commonplace, promoting a culture of health and community.

Meanwhile, big-box gyms like Crunch Fitness are also exemplifying this trend. They are significantly expanding their footprint, reporting a nearly 50% year-over-year increase in leasing activity. In 2025 alone, Crunch added an impressive 91 locations.

Conclusion

As consumer preferences shift more toward health and wellness, it’s evident that service-oriented businesses are taking over retail spaces in unprecedented ways. This trend is likely to continue, reinforcing the idea that investing in wellness is no longer just a trend but a lifestyle choice. Whether you’re considering joining a gym or trying out a new wellness treatment, now is the perfect time to embrace a healthier lifestyle.