REITs Capitalize on Rising Demand for Fitness and Wellness Spaces

Over the past few years, the emphasis on personal health and wellness has grown significantly. Fueled by increased health consciousness, the rise of remote work, and a pivot in lifestyle priorities post-pandemic, people across the nation are seeking better access to fitness and wellness spaces. In tandem with this trend, Real Estate Investment Trusts (REITs) are rising to the occasion by investing in properties tailored to the fitness and wellness industry. As both a blog writer and Exercise Physiologist, I’ll break down why this rapidly evolving landscape is presenting a powerful opportunity for REITs and what it means for communities and investors alike.

Fitness and Wellness Demand Is at an All-Time High

The global wellness market is booming. According to the Global Wellness Institute, the industry surpassed $4.4 trillion in 2022 and is projected to hit nearly $7 trillion by 2025. Top sectors driving this growth include:

• Fitness and Mind-Body Activities: Gyms, yoga studios, Pilates centers
• Healthy Eating and Nutrition: Organic groceries, nutrition clinics
• Wellness Real Estate: Residential and commercial properties centered on wellness-focused living

As a result, the demand for physical locations that support these services has exploded. For the real estate sector, and especially for REITs, this presents a lucrative opportunity to lease or redevelop environments that support health-minded tenants.

REITs Step Into Fitness-Oriented Property Investment

Historically associated with shopping centers, industrial parks, and office spaces, REITs are now pivoting toward the wellness niche. Several major players in the industry have already started incorporating gyms, wellness centers, and even medical wellness clinics into their portfolios.

Why Are REITs Interested?

The fitness and wellness sector offers REITs a compelling value proposition:

• Sticky Tenants: Fitness centers often sign long-term leases due to high up-front equipment investments
• Consistent Foot Traffic: Gym-goers and wellness enthusiasts drive regular footfall, often monthly or even daily
• Growth Potential: As the population ages and health consciousness rises, demand for such spaces continues to grow
• Diversification: Investing in fitness and wellness adds stability to REIT portfolios by diversifying income streams

Examples of REITs Making Strategic Moves

Several REITs are leading the way in blending wellness into their real estate strategies:

• Acadia Realty Trust: Known for urban retail properties, Acadia has welcomed boutique fitness studios like Barry’s and SoulCycle to its centers, aiming to tap into high-income, health-conscious demographics.
• Kite Realty Group: Integrating premier fitness concepts like LA Fitness and OrangeTheory into its open-air shopping centers ensures steady consumer traffic and boosts neighboring retail visibility.
• Healthpeak Properties: While primarily focused on healthcare real estate, Healthpeak has begun investing in medical wellness and aging-in-place communities that incorporate fitness amenities.

A Holistic Shift: Wellness Beyond the Treadmill

While traditional gyms remain popular, the modern wellness ecosystem is far more diverse. Today's consumers seek a lifestyle that supports both physical and mental wellbeing — something REITs are beginning to integrate into their properties.

The New Face of Wellness Tenants

It’s not just about gym chains anymore. Types of tenants now commonly entering leasing arrangements with REITs include:

• Holistic Wellness Centers: These offer mental health support, meditation sessions, acupuncture, and nutritional counseling
• Physical Therapy Clinics: Partnerships with healthcare providers deliver rehabilitative services within retail environments
• Medical Fitness Facilities: Combining clinical care with fitness strategies, appealing to an older or care-focused demographic
• Healthy Eating Hubs: Juice bars, vegan cafes, and organic grocery chains are increasingly co-located with fitness amenities

REITs are quickly learning that a holistic approach to wellness creates destination spaces that entice consumers to spend more time — and money — at their properties. This also boosts psychological value among communities seeking convenience-oriented health access.

From Malls to Movement Hubs: Adaptive Reuse in Real Estate

The eviction downturn in traditional retail and the rise of e-commerce have left malls and big-box stores with vacant footprints. REITs are now creatively repurposing these spaces into active wellness hubs.

Popular Trends in Wellness Adaptation

As an Exercise Physiologist, I've seen firsthand the impact environment has on physical activity adherence. Adaptive reuse of old structures into wellness centers provides communities with inviting, accessible landscapes to support long-term health goals.

• Converting Box Stores Into Multi-Studio Fitness Complexes: Turn an empty Sears into a thriving hub featuring a CrossFit gym, barre studio, cryotherapy clinic, and smoothie bar under one roof
• Transforming Malls Into Wellness Villages: Including day spas, diagnostics labs, yoga spaces, medical wellness clinics, and mental health services
• Green Retrofitting: Prioritizing indoor air quality, natural lighting, and biofilia-inspired design supports stress reduction and improves exercise enjoyment

Creating Synergy: How REITs Can Further Support Health

With lifestyle becoming the new currency, properties that foster a synergistic experience between fitness, food, and mental wellness are quickly becoming the gold standard for REIT development.

Strategies for Investors and Property Managers

REITs aiming to truly capitalize on the wellness movement should consider the following:

• Curate Complementary Tenant Mixes: Group tenants strategically to build a story of wellness under one roof, from fitness studios to smoothie shops
• Focus on Walkability and Outdoor Amenities: Trails, seating areas, and public green space enhance user experience and add communal value
• Offer Flexible Leasing for Fitness Startups: Emerging fitness brands and boutique concepts often need adaptable leasing terms to get their footing
• Incorporate Technology Infrastructure: Spaces primed for wearables integration, virtual classes, and touchscreen kiosks will attract future-forward tenants

Challenges and Considerations Ahead

Though the fitness and wellness sector presents exciting opportunities, REITs must remain mindful of unique challenges, such as:

• High Tenant Turnover in Boutique Studios: Wellness fads can fade quickly, requiring vigilance in tenant selection
• Zoning and Build-Out Requirements: Converting traditional retail into wellness spaces often requires specialized design and city approval
• Changing Consumer Expectations: The demand for hybrid experiences — both in-person and digital — continues to evolve

The Future: A Sustainable and Profitable Path Forward

As consumers increasingly prioritize wellness, REITs have the opportunity to amplify their portfolios while serving an essential public health function. By aligning with the future of community health and well-being, REITs won’t just fill vacant square footage — they will cultivate vibrant, active, and engaged environments that support whole-person health.

In summary, REITs investing in fitness and wellness spaces are not just following a trend; they’re contributing to the infrastructure of a healthier America. From upgraded gyms to full-suite wellness environments, the potential for revenue, impact, and innovation is vast.

Final Thoughts from an Exercise Physiologist

As someone deeply involved in promoting human health, I find this convergence between real estate and wellness incredibly exciting. The built environment plays a powerful role in encouraging—or discouraging—healthy habits. When REITs design their developments with intention, inclusivity, and integrated wellness services, we take another leap toward building healthier lives at scale.

For investors, developers, and wellness professionals alike, this is more than just a trend—it’s a movement. And building better spaces today means building better communities tomorrow.