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— Retail Properties Quarterly — September 2015
“We are seeing much more fragmen-
tation in the fitness industry, with
smaller clubs located alongside big-
ger clubs.”
While big facilities like Colorado
Athletic Club have established a
presence downtown and in the
Denver Tech Center, studio gyms
are working well in smaller neigh-
borhoods like Washington Park
and the Highlands. It simply comes
down to the issue of space – small
clubs don’t require as much and
can enter into those areas more
easily. However, the argument that
can be made for large clubs not
wanting to get into each neighbor-
hood is that people are more apt to
travel to a bigger club.
Whether people travel to a big
club or walk to a nearby neighbor-
hood studio, the one thing that all
facilities are benefiting from is that
Colorado is a premier setting for fit-
ness. The state has a reputation of
being a destination market for mil-
lennials and having an atmosphere
of fitness-oriented people who
require sophisticated training. There
is more focus on health and well-
ness than ever before, and people
in the state seem determined to get
in shape and stay in shape for both
the ski season and summer.
“Colorado is seen as a test mar-
ket for new concepts, whether it is
for food or fitness,” said Matthew
DeBartolomeis, vice president of
retail services with CBRE. “What we
are experiencing is a nationwide
trend.”
From New York to California, the
studio fitness concept is popping up
across the country, not just in Colo-
rado. People are interested in and
gravitate toward unique or more
specialized fitness. Core Power Yoga,
Yoga Pod and Orange Theory Fitness
are a few of the studio facilities that
are gaining popularity. Weisiger and
DeBartolomeis said one concept
that could soon enter the mar-
ket and have a big impact on the
industry is cycle fitness. Flywheel,
SoulCycle and CycleBar are brands
that have been introduced to other
markets.
The small class settings that
these specialty studios provide only
require 3,000 sf to 5,000 sf of space,
making shopping center retail space
the ideal fit for these concepts.
Although, trying to find these spac-
es now is less than ideal.
“Every fitness store wants to be
in retail shopping centers alongside
other retail, but those spaces are
fewer in number,” said Weisiger.
“There was a time period when
some of the larger clubs were mov-
ing into second generation spaces,
but even those spaces are much
tougher to find because the space
is not well suited or well located for
where they want to be.”
The options many fitness centers
are left with are building a new
place or a build-to-suit property,
both of which drive up costs. Fit-
ness centers have a greater need for
restrooms than typical retail and,
in some cases, necessitate shower
facilities as well. The hours of opera-
tion for fitness varies and the park-
ing can be more intensive at certain
points of the day, depending on
when classes are offered. “Because
of these requirements, fitness cen-
ters are selective and, although
some stores will continue to look to
expand, it will be in locations that
fit with rent structures and demo-
graphics,” said DeBartolomeis.
Many fitness centers are thriv-
ing in Colorado because personal
preferences differ. Some like the
large club feel that includes tennis
and swimming, while others prefer
a smaller setting or more special-
ized program. The questions now
are how many more concepts can
Colorado support, and where will
they go?
s
Fitness
Clubs and facilities within the
industry can be broken down
into four different categories,
according to CBRE's Matthew
DeBartolomeis – lifestyle clubs,
general clubs, value-priced clubs
and specialty fitness. Following
are examples of each and the
size ranges.
Lifestyle Clubs
Colorado Athletic Club and Life
Time Fitness –
35,000 sf to over 100,000 sf
General Clubs
24 Hour Fitness, Tru Fit and
Gold’s Gym –
20,000 sf to 40,000 sf
Value-Priced Clubs
You Fit and Planet Fitness –
15,000 sf to 25,000 sf
Specialty Fitness
Core Power Yoga, Yoga Pod,
Orange Theory Fitness and
Anytime Fitness –
2,500 sf to 6,500 sf
Fitness Facility Types
‘Colorado is seen as a
test market for new concepts,
whether it is for food or fitness.
What we are experiencing
is a nationwide trend.’
– Matthew DeBartolomeis, CBRE
