Gyms Like Life Time Bring New Energy to Vacant Retail Spaces
Krissy Vann | Host, All Things Fitness and Wellness
As traditional retail continues to evolve, empty spaces in malls across North America are becoming a common sight. With the rise of e-commerce and changing consumer habits, large-format stores like Bed, Bath & Beyond have vacated prime real estate, leaving property managers searching for solutions to fill these sizable gaps. Enter the fitness industry, which has increasingly become a valuable tenant for malls and shopping centers. Health clubs and fitness facilities bring steady foot traffic, offer significant leasing advantages, and utilize large square footage, making them ideal replacements for vacated retail space.
Life Time’s latest expansion at Annapolis Town Center exemplifies this trend while tapping into the exploding popularity of pickleball. After the closure of Bed, Bath & Beyond in April 2023, Life Time took over the 46,000-square-foot space, expanding its already successful athletic country club to nearly 90,000 square feet. This strategic move not only filled a retail vacancy but also addressed the growing demand for social fitness experiences, particularly pickleball.
“From the moment we announced we were bringing pickleball to Annapolis Town Center this spring, the excitement has been building and we're thrilled to bring even more opportunities for people to be healthy, happy, and social,” said Parham Javaheri, Life Time Chief Property Development Officer and President of Club Operations.
By transforming the space into a multi-functional fitness hub with 11 new indoor pickleball courts, Life Time has injected fresh energy into the Annapolis Town Center. The bustling shopping area benefits from increased foot traffic driven by health-conscious members attending classes, tournaments, and social events.
Real estate in malls across North America has faced significant challenges over the past decade. Many high-profile retail closures left landlords grappling with empty spaces that traditional retail alone could not refill. The solution, as gyms like Life Time have demonstrated, lies in reimagining these vacant stores as fitness destinations. Fitness centers are ideal for absorbing large, open spaces and, unlike many traditional retail outlets, they generate consistent daily traffic. Members visit multiple times a week for workouts, classes, or social events, driving not only foot traffic but also potential spending at neighboring shops and restaurants.
Beyond its ability to fill large square footage, Life Time’s expansion highlights the broader trend of health clubs becoming social hubs. Pickleball courts, training areas, and lounges offer not just fitness but a sense of community, further driving engagement. The transformation of large, empty retail spaces into vibrant fitness centers demonstrates how commercial real estate can adapt to modern consumer needs. Gyms, with their ability to draw regular crowds, provide a sustainable model for mall owners seeking to rejuvenate foot traffic.
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Credit: Life Time