City gyms flex their muscle post-pandemic

As office workers mark their return to working in the CBD’s, gyms and wellness operators are capitalising on the opportunity to re-establish their businesses post pandemic.

In Sydney, the increased demand for leasing space for gym or wellness related business was a result of an increase in health-conscious minded consumers, James Strang, Colliers International retail projects NSW, retail leasing manager said.

UFC Gym in George Street Sydney opened in 2021. Picture: Supplied.

“Sydney was always a health orientated community, however the ramifications of Covid has ultimately broadened the health and fitness community,” he said.

“Since COVID there has been a substantial increase in gym memberships due to the heightened importance put on health and wellbeing, which has resulted in gyms expanding their network.”

World Gym, which was founded in California, was the most notable international brand entering the Australian market in Sydney recently, Mr Strang said.

At 580 George Street, Sydney, UFC Gym’s ‘signature’ flagship’s premium offering, with ice and steam rooms, opened in 2021, while boxing gym, Rumble in St Leonards opened last year.

At 123 Sussex Street in the Sydney CBD, CBRE Leasing Executive Damian Frazzica successfully secured Ultimate Fitness Centre as its new tenant, following interest from more than 20 gym groups, which included boutique gyms, specialised classes, Spin and HITT operators.

Ultimate Fitness Centre is aiming to open its doors in September.

“In the past six months, we have seen a rise in enquiry from health and wellbeing operators as they increase their focus on expansion,” Mr Frazzica said.

“This is particularly evident in the Sydney CBD, with boutique operators and gym franchises eying opportunities as a growing number of people return to the office.”

Wellness and recovery studio Recoverie has been looking to expand in the Sydney metro area, including the CBD, after the success of its Cronulla and Coogee locations.

“Recoverie Coogee launched just before the pandemic and we saw large demand and attendance post lockdowns,” Recoverie co-founder Steve Hoiles said.

“We have since opened Recoverie Cronulla, with Recoverie Manly on its way, and it makes sense for us to look into expanding in the Sydney CBD as regular habits resume.”

Meanwhile, Michael Tuck, Colliers International head of retail leasing, said local operators were diversifying their offering and creating new brands that offer holistic health, in a club-style environment.

Since Covid there has been a substantial increase in gym memberships, experts say. Picture: Getty

“I’m seeing more demand from the smaller format, boutique-style gym offerings rather than the larger format major gym brands,” he said.

“The customer’s interest is driving more opportunity for boutique gym and wellness brands.”

Consideration for health and wellness has become a critical amenity offering for landlords and companies seeking to engage customers and employees, Mr Tuck said.

“Customers are willing to pay more for higher-end quality and services, and the higher-end of the industry is becoming lucrative for business owners,”” he said.

In Melbourne, demand from consumers for quality fitness and wellness offerings has increased substantially over the past six months, which has put pressure on operators to establish their CBD footprint, Colliers International retail leasing director Adam Lester said.

“Office landlords are delivering higher quality amenity to attract tenants, and gyms are benefiting from this approach,” he said.

“The fastest growing segment of the market is the high-end, boutique concepts which are offering additional wellness services like massages, lounges, cryotherapy etc.”

In Perth, WA, the Chris Wilson Fitness Studios are a luxury boutique training experience with locations in Nedlands and Highgate.

Personal Trainer Chris Wilson and owner of Chris Wilson Fitness Studio at his premises on Stirling Highway in Nedlands. Picture: Jackson Flindell The West Australian

Capped at 50-members – with a waitlist – its premium membership comes with a $600 a week price tag.

“The studio is priced to be competitive with the current market but also offer a point of difference to our surrounding suburbs,” owner Chris Wilson said.

“We are situated in an affluent area where people have disposable income to invest in their health and wellness.

“We wanted to cater for everyone by offering memberships from $59 but also having a membership which is $600 per week that includes a more well-rounded lifestyle package.

“If you add together the cost of this, plus your eating out in the community, a yoga membership plus coffee stops, our highest value membership is actually good value if you consolidate costs.”

Mr Wilson’s newest studio in Highgate includes the latest range of fitness equipment, including a 15 metre Astro Turf track, Concept2 Rowers, SkiErgs ski machines, cold towels, post workout and access to saunas and spa treatments.

Post-pandemic, Mr Wilson said there had been a strong resurgence in the popularity of gyms.

“People love connection and community. We saw a huge drop off in group classes during pandemic times but we were also limited to restrictions,” he said.

“Our personal training grew during the pandemic because people still needed accountability and connection.

“Now studios are reopened and standards and hygiene has improved – people love the energy and feeling from being in a group environment and being part of something.”