How REITs Are Capitalizing on Fitness and Wellness Boom

In recent years, we’ve witnessed a paradigm shift in the way people view health. Driven by a global emphasis on preventative care, active lifestyles, and holistic wellness, the fitness and wellness sectors have grown rapidly — and Real Estate Investment Trusts (REITs) are catching on in a big way.

As an Exercise Physiologist, I see firsthand how consumers are investing more in their physical and mental health. Whether it’s boutique fitness centers, rehabilitation studios, or wellness-focused coworking spaces, this evolution in consumer demand is having a significant ripple effect — especially in commercial real estate.

Let’s explore how REITs are riding this wave to diversify their portfolios and support the future of health-conscious spaces.

The Intersection of Fitness Trends and Real Estate

Americans are more focused on health than ever before. Group fitness classes, recovery lounges, wellness cafes, and hybrid health clubs offering everything from nutrition to mental health support are booming. And amidst this transformation, REITs are adapting by investing in infrastructure that supports these wellness ventures.

According to Nareit, REITs are increasingly working with fitness operators and wellness brands to integrate their offerings in mixed-use developments and urban centers. These partnerships not only yield commercial returns but also ensure spaces stay relevant in an evolving market where health and wellness are considered necessities, not luxuries.

Key Trends Driving REIT Investments in the Wellness Sector

• Hybrid Fitness Models: People are blending in-person and digital fitness, which requires adaptable real estate spaces with modern tech infrastructure.
• Wellness-Oriented Retail: Retail REITs are pairing fitness studios with wellness shops, spas, and healthy dining to create holistic consumer experiences.
• Urban Lifestyle Centers: Millennials and Gen Z prefer mixed-use developments where they can live, work, and stay healthy — all in one place.
• Medical Fitness Integration: As insurance providers and health systems recognize fitness as preventative care, locations that mix rehab, physical therapy, and personal training are exploding.

These trends have a clear message: health is now at the core of how we build, rent, and repurpose space.

REIT Categories Best Positioned for Wellness Investments

Certain types of REITs are more naturally poised to benefit from wellness and fitness trends. Here’s a closer look:

1. Retail REITs

Once challenged by the e-commerce boom, many retail REITs have shifted focus to experiential tenants — and fitness/wellness tenants lead that charge.

Fitness centers such as Planet Fitness, Orangetheory, and F45 have become anchor tenants in strip malls and shopping plazas. These businesses drive foot traffic, extend shopper dwell time, and increase visit frequency.

Retail REITs are also partnering with wellness-forward brands that offer:

• Cryotherapy lounges
• Infrared saunas
• Acupuncture and holistic therapy studios
• IV hydration and med-spas

2. Healthcare REITs

Healthcare-focused REITs have long invested in hospitals, urgent care centers, and senior living facilities. Today, they’re investing more in fitness-integrated health centers and post-acute rehab spaces that merge medical and movement-based therapy.

As chronic disease rates climb, exercise is no longer just a lifestyle choice, it's medical necessity. These REITs help fund facilities that offer:

• Functional fitness for older adults
• Personal training for post-surgical rehab
• Medical fitness labs outfitted with diagnostic technology

3. Residential and Mixed-Use REITs

The “live-well” lifestyle is heavily influencing apartment and condo development. Tenants now expect more than a basic gym. They want dynamic wellness amenities such as:

• Spin studios, yoga rooms, and meditation pods
• Community health events and fitness classes
• Onsite wellness concierge services
• Integrated bike-sharing and green walking trails

By prioritizing tenants' wellness needs, REITs are not just filling units — they’re building community and tenant loyalty.

Notable Partnerships and Examples

Real-world application of these trends is everywhere in commercial real estate. Let's look at a few examples of how REITs are embracing the wellness-forward landscape:

• Seritage Growth Properties: Strategically redeveloped former Sears stores into wellness hubs with tenants like Equinox, Life Time Fitness, and organic grocers.
• Simon Property Group: Partnered with major fitness brands to occupy retail outlets and introduced wellness pop-ups to revive brick-and-mortar relevance.
• Healthpeak Properties: Pivoted towards senior-focused, wellness-infused residential communities that include therapy gyms and wellness kitchens.

These strategic alignments ensure that REITs remain viable and attractive for long-term investors while supporting a healthier future for communities.

The Role of Technology in Wellness Real Estate

It’s no secret that the fusion of technology and health is creating smarter, more efficient wellness spaces. REITs are making sure their properties are equipped to handle this rapidly evolving technology-driven landscape.

Whether it’s upgrading HVAC systems to promote better air quality or creating plug-and-play spaces for fitness apps and biometric tracking — well-tech is setting a new industry standard.

Properties armed with IoT sensors and AI-powered lighting and air systems provide:

• Improved safety and hygiene
• Personalized experiences for tenants and gymgoers
• Optimized energy use for sustainable operations

Investment Outlook: Why This Trend Isn’t Slowing Down

According to wellness market researcher GWS (Global Wellness Summit), the global wellness economy is expected to reach over $7 trillion by 2025. This includes fitness, mental health, wellbeing travel, and nutrition services.

REIT investors are incredibly responsive to behavioral shifts — and this one shows no signs of reversal.

• Younger generations are spending more on their well-being than previous generations.
• Workplace wellness is becoming crucial in recruitment and retention efforts, driving demand for fitness-friendly office spaces.
• Seniors are living longer and seeking active aging communities, pushing residential and healthcare REITs to provide functional, therapeutic spaces.

Final Thoughts

Health and wellness are no longer sidelined amenities — they are central components of retail, residential, and healthcare real estate. As an Exercise Physiologist, I see more emphasis being placed on how our environment shapes health and performance. REITs that adapt and innovate in this space stand to benefit the most in the coming decades.

Whether it's creating entire wellness districts or integrating gyms inside suburban malls, REITs are helping shape where — and how — we achieve our wellness goals. With the demand for health-centric environments only increasing, this convergence of real estate and fitness is one of the smartest plays in the investment arena today.

Are you a fitness entrepreneur or wellness brand looking to expand your footprint? Leveraging REIT partnerships and understanding this real estate shift can give your business a major edge in the race toward mainstream adoption and profitability.

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