With relentless uncertainty impacting the commercial real estate market, any sign of stability within a sector is important to identify and understand. Investors must be creative in their portfolio diversification, which is why all real estate professionals should take a closer look at the fitness industry. The fitness industry, for obvious reasons, was a post-pandemic success, as visits to gyms across the country surged once people were allowed to leave home and restart their in-person workout routines. Despite soaring inflation and reduced discretionary spending, people continued to go to the gym and pay membership costs to do so. While the fitness industry experienced consistent growth for years following the pandemic, the growth has now stabilized. Placer.ai released a whitepaper that explores the different ways in which location analytics reveal how the fitness space has changed – and what strategies gyms can adopt to stay successful. 

One of the best ways for fitness centers to continue growing and/or maintain stability is to lean into consumer preferences. For example, Placer.ai reports that gym visits increased by 15.8%-18.6% during the time slots of 2:00 PM-5:00 PM during the pandemic years of 2019-2021 due to remote work. Though this trend partially reversed as the pandemic receded, afternoon visits remained elevated in Q1 2024 compared to pre-COVID levels – likely a reflection of hybrid work patterns that leave people free to take an exercise break during their workdays. At the same time, the share of morning visits to fitness chains (between 8:00 AM and 11:00 AM) dropped from 20.5% in Q1 2019 to 17.2% in Q1 2024, while evening visits (between 8:00 PM and 11:00 PM) increased from 11.3% to 13.2%.

Gyms that recognize this changing behavior can adapt to new workout preferences – whether by incentivizing morning visits, scheduling popular classes mid-afternoon, or offering extended evening hours.