Is Fitness Club Sector Over-Crowded?

Is Fitness Club Sector Over-Crowded?

Over the past few years, fitness club operators have been able to gain favor with retail landlords by leasing up spaces left over by failed or downsizing tenants, especially in the big-box category. But with a multitude of gym operators now signing leases in the same markets, are the landlords setting themselves up for a replay a few years down the line?

Some RECon attendees think the gyms' ever-dropping membership rates are an indication they are desperately trying to gain market share in an over-crowded market. Does anyone else care to weigh in on this issue?

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