You finally find it: the perfect location for your gym.
It’s got everything—ample parking, great visibility, and it’s smack in the middle of your ideal neighborhood.
You’re already picturing your logo on the windows, the equipment layout, the buzz of members coming and going.
Then you see the rent… and your stomach drops.
If that sounds familiar, you’re not alone.
It happens to a lot of gym owners. The space looks like a dream—until the numbers hit you. These days, rental space pricing for a gym is one of the most stressful and unpredictable parts of opening your business. If you’re not careful, it can eat up your profits before you’ve even opened the doors.
Here’s the good news: it doesn’t have to be that way. With a little strategy, some number crunching, and guidance from folks who’ve been there, you can find a great space and keep your business healthy from day one.
Let’s dive into how.
Why Location Still Reigns Supreme
Your location affects everything—who joins your gym, how much you can charge, how visible you are to your target market, and how long members stick around.
Rick Mayo, founder of Alloy Personal Training, which is placing franchise locations nationwide, puts a lot of weight on choosing a spot that fits the surrounding demographics. Think: traffic, accessibility, income levels, and the competition nearby.
Sure, you might find a cheaper spot off the beaten path—but if your ideal members can’t find you or don’t live close by, you could lose more in revenue than you save on rent.
The old saying about restaurants is true. Location, location, location can be the most important factor!
Understanding Rental Space Pricing for a Gym
Let’s break down the numbers.
- In big cities, rental space pricing for a gym typically runs $20–$40 per square foot annually. That’s $5,000 to $10,000 a month for a 3,000-square-foot gym.
- In suburban or smaller markets, you might pay more like $10–$18 per square foot—still a chunk, but more manageable.
- If you’re renting hourly (say for a class-based studio), expect anywhere from $95–$175 an hour, depending on your city. Atlanta, for example, averages $170/hour, according to Peerspace.
Stu Brauer of Gym World advises gym owners to keep rent below 25% of your monthly revenue. If you’re bringing in $40,000/month, you shouldn’t be spending more than $10,000 on rent.
He also reminds owners to look at every room, zone, or trainer hour as a piece of real estate that needs to earn its keep. If part of your space isn’t generating revenue, that’s a problem.
What the Experts Recommend
Here’s what fitness business coach, author and podcaster Vince Gabriele says about planning for profitability.
Don’t get swept away by fancy windows and square footage you can’t afford. Vince, author of Fitness Business Secrets, urges gym owners to run the numbers first.
He recommends building a detailed pro forma—basically a projection of your financials—to make sure your space fits into your revenue plans. Factor in both best-case and worst-case scenarios so you’re not caught off guard.
Fit biz coach, author and podcaster Pat Rigsby says start small and smart.
Pat encourages new owners to resist the urge to “go big” right out of the gate. A smaller space that’s busy and profitable beats a big, half-empty one that drains your bank account.
Consider subleasing or using shared spaces when starting out and considering the right rental space pricing for a gym. You can always grow into a bigger spot later, once your systems and cash flow are stable.
How to Find the Right Space
Here’s a straightforward checklist to help you pick the right space for your goals and your budget when considering rental space pricing for a gym:
1. Do Your Research
Use tools like ESRI, Buxton, or just plain census data to understand your neighborhood:
- Who lives nearby: Young families? Busy professionals? Retirees?
- What’s the average household income?
- How many other gyms are already serving the area?
Be sure you’re solid with your business plan so rental space pricing for a gym is just part of the bigger picture. Who are your clients? How much are you charging? What’s important in the image you want to project?
2. Use a Commercial Broker
An experienced broker can uncover hidden opportunities and negotiate better lease terms. They know the local market and rental space pricing for a gym, so you don’t overpay.
3. Check Visibility and Access
Can people see you from the street?
Is there plenty of parking?
Alloy locations often go for strip centers or freestanding buildings for this reason. They’re easy to find and easy to access. And they might share a location with other businesses that serve your same target clientele.
4. Negotiate the Lease Terms
Don’t just look at the base rent. Ask about:
- Free rent for the first few months
- Tenant improvement allowances
- Renewal options and exit clauses
- Who handles HVAC, repairs, or taxes?
Doug Spurling, fitness business coach, reminds gym owners: This isn’t just about saving money today. It’s about setting up your gym to succeed long term.
Surprise Costs to Watch Out For
Even a great rent number can hide extra expenses. Continue looking into the details and be sure to budget for:
- CAM (common area maintenance) fees
- Property taxes and insurance
- Utilities and HVAC
- Permits and buildout costs
Gym owner and coach Mark Fisher says you should expect 20–30% more than the base rent to cover real-world expenses as part of rental space pricing for a gym. It adds up fast.
Creative Ways to Make Rent More Affordable
If rent feels too steep, think outside the box:
- Would it be smarter for you to sublease unused space from another gym or studio?
- Can you partner with a chiropractor or physical therapist to share space?
- What about asking your landlord for a revenue-based lease tied to your performance?
Read ‘Semi-Private Training is The Future’
Also, consider small group personal training, aka “semi-private” training, to get more folks in the gym at one time to bring in higher revenue for the same spot.
Before You Sign Anything
Even after you think you’ve found the right deal, don’t rush into anything without taking these last steps regarding rental space pricing for a gym.
- Run the numbers. What’s your break-even point? Can you afford slow months?
- Ask for exclusivity. You don’t want a competitor opening next door.
- Consult a lawyer. Always have your lease reviewed before signing.
Wrapping It Up
Finding your perfect gym location isn’t just about scoring the cheapest rent. It’s about value and the right fit, choosing a space that works with your business model, helps you grow, and doesn’t bleed your budget dry.
With smart planning and insights from people who already have considered rental space pricing for a gym, you can secure a space that sets you up for success
As fitness business coach Todd Durkin says: “Energy is everything. Make sure your space gives you and your team the energy to win every day.”
That starts before you even open your doors!Need help managing your gym once it’s up and running? Get our free Naamly Online University newsletter for weekly business advice, tips, and systems you can use right away.