London Gyms Bulk Up - Levy
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
London Gyms Bulk Up
Health and Fitness Today
It was forecast in 2015 that the number of Londoners in the capital using private health Today, driven by rapid growth at the low-cost end of the market: the popularity of
and fitness clubs would grow by 20% to reach 6.5 million by the year 2020. studio concepts with flexible memberships; the surge in social media marketing; and
ambitious expansion plans from existing operators, reports show:
The gym market is booming and reports have found that the private health and fitness
club market could surpass £3 billion in 2018. • A 21% growth year on year in London gyms
These figures derive from the dramatic change in the composition of the London • Central London could support an additional 30 gyms, based on the current
Gym Market, which has been evolving since 2015. Modern gyms have transformed to worker to gym ratio, producing a further 26% in potential growth.
encompass an array of facilities: body composition checks; personal training; smaller
class sizes; and boutiques filled with luxury athleisure wear now filter throughout major Areas such as Farringdon, Clerkenwell, Shoreditch, Aldgate, Queensway and
fitness hubs gracing the high streets of London today. Victoria have been identified as having the greatest potential to support new gym
openings. Research found that Farringdon in particular, has potential to support at
Following New York’s triumphs with Soul Cycle and LA’s with Barry’s Bootcamp, studio least 10 gyms or 20 studios based on a ratio of 56,000 workers per gym in 2016.
concepts in particular have pioneered a newly formed fitness mentality in London, and
with the help of social media, this in turn is spurring more people to get fit with more
style.
Market Influences The Rise of Studio Concept
The Central London Gym market currently comprises A decade ago, the fitness industry was dominated by larger mid-
4 main concepts: market operators and a handful of speciality studios.
Now studios represent 21% of overall clubs in
• Studio (Psycle, Barry’s Bootcamp, 1Rebel) London. Studio concepts offer and provide
• Luxury (Third Space, Equinox, The Virgin Active Collection) expert-led sessions that stretch customers
• Mid-Market (Fitness First, Bannatyne) far more than self-led training, but at a
• Budget or “Low-Cost” (Pure Gym, Anytime Fitness, The Gym) much lower price than one- to-one
coaching.
While each operator has it’s niche, the ever-
growing market has resulted in market leaders The increase in demand for this type
enhancing their concept, providing facilities found of experience has translated into
in other operations in order to adapt to new higher rents paid for spaces.
practices filtering into the market and retain their
clientele. Brands such as 1Rebel, Psycle,
Core Collective and Barry’s Bootcamp
The opening of BXR in Marylebone, combining have exploited their positioning next
pay-to-train and luxury gym concepts in a 12,000 to London’s busiest transport hubs,
sq ft glass fronted unit illustrates how gyms and reaping the benefit of a constant flow of
boutiques can work simultaneously under one roof. people but at twice the average rent of
Catalysts such as Classpass also enable gym- other operators.
goers to train with flexibility, enabling them to Research has found:
trial boutique studio sessions despite
having memberships in mid-market • Studio operators have an average size requirement
gyms. of approximately 4,500 sq ft
• Studio operators pay an average rent of
£27.70 psf vs. £13.40 psf paid by mid-
market operators
• 35% of studio space is underground
• Studio operators need at least 200 sq ft
of retail space to promote athleisure wear
and clean eating.
London Take-Up:
Quick Facts
Considering all uses, research has found that: The Future
• Luxury concepts account for approximately 10% of
gyms in the capital, but represent 22% of total floorspace
due to extra facilities (swimming pools).
2017 has several new gym openings in the
• Luxury gyms pay on average £21.56 psf, driven by the
pipeline. As demand outstrips supply, we
expensive nature of preferred locations (Marylebone, Notting Hill, have seen landlords explore the option of
Kensington) but have been known to pay more and these rents are obtaining planning permission to convert
rising. unused retail/office basement space to D2
Leisure Use, which in effect may prove the
• Membership fees exceed £135 a month in luxury best use and value for vacant commercial
concepts as a result of extra facilities. space.
• Studio concepts contribute to 6% of total gym While landowners constantly attempt to
space, despite making up 21% of overall
rectify the issue of supply, there is clear
clubs in London.
evidence that the drive for new and stylish
• 46% of gyms opened in 2016 were budget concepts in the gym market, particularly
concepts (aided by Pure Gym’s acquisition by millennials, will continue to drive rents
of LA Fitness). up, proving the D2 Leisure market as a
competitor for the most valuable uses in the
• 54% of mid-market gym space is at Central London market.
basement level.
For further information on the changing nature of the Central London Gym Market, please contact:
Matt Paulson - Ellis MRICS
T 020 7747 0151
M 07867 781 811
E matt.paulson-ellis@levyllp.co.uk
Levy Real Estate LLP
Joelle Allotey Nuffield House T: +44 20 7930 1070
T 020 7747 0152 41 - 46 Piccadilly E: info@levyllp.co.uk
M 07970 238 413 London, W1J 0DS www.levyllp.co.uk
E joelle.allotey@levyllp.co.uk
You can also read
