How To Select the Right Location for My Gym?

Choosing the right location is one of the most critical decisions you’ll make when opening a gym. While equipment, classes, and branding are important, the physical site often determines whether your business thrives or struggles. Industry research consistently shows that convenience and accessibility are the top factors members consider when choosing a fitness facility (IHRSA, 2023). We discuss some of the key considerations every fitness entrepreneur should consider before signing a lease or purchase agreement on a new site.

1. Understand Your Target Market

Start with a clear profile of your ideal member: age, income level, training preferences, and lifestyle.

• A 24/7 budget gym may thrive near high-density population with a younger demographic or shift workers where outside traditional hours are desired and convenience is a key factor.

• A boutique studio might be better suited to affluent suburbs with health-conscious demographics and social status or friend groups can train.

• Family-focused gyms often perform best near schools, residential areas, and community hubs.

Industry reports such as IBISWorld’s Gyms & Fitness Centres (2024) stress the importance of aligning location with demographics — facilities that mismatch their market often struggle with retention.

2. Analyse Population Density and Catchment Area

Most gyms draw members from a 5–10 minute travel radius. High-density areas with strong foot traffic and limited direct competition offer better odds of success. You also need to consider man made barriers ie highways, railways that may limit drive time market catchment.

• Urban gyms rely on visibility and convenience — being on a main street or near public transport and convenient access.

• Suburban gyms may depend more on car access, with ample parking and proximity to residential estates.

IHRSA data shows that proximity to home or work is the number one reason people choose a club (IHRSA, 2023).

3. Assess Local Competition

Competition is not always a bad sign — it can indicate a strong fitness culture. But you need to understand the market gaps. How will your brand differentiate.

• If the area is saturated with low-cost gyms, consider a boutique or service-rich model with larger range of facilities.

• If there are many studios but no large general fitness centre, a full-service facility may stand out.

• Look at pricing, facilities, class mix, community engagement, and brand reputation of competitors.

According to the Health & Fitness Association’s Global Report 2024, facilities that carve out a distinct value proposition — even in crowded markets — achieve stronger member loyalty.

4. Visibility and Accessibility

A prime location is not just about geography — it’s about being seen and accessed easily.

• High street, shopping centre, or business park locations benefit from natural visibility.

• Signage, lighting, and parking all influence how approachable a gym feels.

• Accessibility laws (such as ADA in the US or Equality Act in the UK) must be factored into site design.

Remember: a hidden location can save on rent but may cost you heavily in marketing to generate awareness.

5. Site Size and Layout

The physical space must support your business model:

• Full-service gyms typically require in excess of 1000 sqm (10,000+ sq ft) or triple this to accommodate cardio, strength, studios, and amenities.

• Boutique studios may thrive in 150 – 300sqm (1,500–3,000 sq ft) if layouts are efficient.

• 24/7 Express clubs range from 300sqm to 1000sqm

• Ceilings, natural light, ventilation, and noise control all impact member experience.

Future expansion should also be considered — choosing a site with no growth potential can limit long-term strategy.

6. Lease Terms and Landlord Considerations

Beyond the site itself, the lease can make or break your business.

• Aim for longer terms with renewal options to protect your investment. Remember commercial leases normally set the terms for the next 10 – 20 years, you need to ensure these terms are sustainable longer term for both the success of the business and saleability.

• Clarify responsibility for repairs, maintenance, and fit-out costs. These key items ensure there are no costly surprises later down the track ie Air conditioning systems.

• Negotiate incentives such as rent-free periods during build-out. This is important in the initial stages of presales and membership growth to minimize time of negative cashflow and there for additional capital.

• As part of any lease negotiations considerations of development approvals should also be considered to ensure the site is suitable.

According to IBISWorld, high rental costs are one of the leading causes of gym failure, especially for start-ups. Don’t stretch your operating model beyond sustainable rent-to-revenue ratios.

7. Community Integration

Gyms succeed when they are part of the local community. Proximity to schools, coffee shops, retail hubs, and sports clubs can enhance brand visibility and provide natural partnerships. Community involvement — sponsoring local teams or hosting wellness events — becomes easier when the gym is embedded in daily life patterns.

Conclusion

Location is more than just a pin on the map. It’s a strategic choice that shapes your member base, your cost structure, and your growth potential. The best sites combine demographic fit, visibility, accessibility, manageable lease terms, and community integration.

As IHRSA and HFA data consistently show, members prioritise convenience and connection. By carefully selecting a location that aligns with your target audience and long-term business plan, you set your gym up for sustainable success.

References

• International Health, Racquet & Sportsclub Association (IHRSA). (2023). U.S. Health & Fitness Consumer Report. Boston: IHRSA.

• Health & Fitness Association (HFA). (2024). Global Report: Fitness Industry Performance. HFA/Leisure Database.

• IBISWorld. (2024). Gyms & Fitness Centres Industry Reports (Australia, UK, US).