Budget gym boom in London leads to surge in rent charges
by Matthew Campelli | 09 Jan 2017
There is still scope to launch 30 more gyms in Central London, according to the report / srekap/Shutterstock.com
Budget gym operators with premises in Central London are paying 19 per cent more rent than mid-market rivals, according to a Colliers International report.
Dan Taylor, the firm’s head of retail lease advisory, attributed the disparity (£2.50 per sq m) to the increase in demand from the budget sector – such as Gym Group and Pure Gym – which are opening sites with more regularity.
Indeed, the number of low-cost gyms opening in London surged by 46 per cent in 2016 alone.
Colliers head of UK leisure agency Ross Kirton explained: “Once the preserve of regional towns and cities, budget gym operators have cast aside concerns of rent affordability in London and are catering to the large number of customers who are keen to swap expensive monthly memberships in favour of no-frill concepts.”
The Central London Gym Review report also discovered a number of areas within Central London that are primed for gym investment.
Farringdon, Clerkenwell, Shoreditch, Aldgate and Victoria have been identified by Colliers as the areas of most potential.
The former, said the report, has the potential to support at least 10 additional full gyms or 20 studios “based on the current ratio of 56,000 workers per gym in 2016”.
Central London itself could support 30 new gyms (26 per cent growth) following the 21 per cent growth experienced last year.
“It is pleasing to note that there is scope for many more gyms in the capital given the number of exciting new concepts keen to take representation,” Kirton added.
“London has been dominated by the mid-market sector for a number of years, but landlords and consumers are now finally able to benefit from unique offers giving genuine choice.”
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Budget gym operators with premises in Central London are paying 19 per cent more rent than mid-market rivals, according to a Colliers International report. Dan Taylor, the firm’s head of retail lease advisory, attributed the disparity (£2.50 per sq m) to the increase in demand from the budget sector – such as Gym Group and Pure Gym – which are opening sites with more regularity. Indeed, the number of low-cost
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