Retailers Eschew Big Box Spaces

Alex Koustas

New demand from fitness centers are filling retail vacancies in Los Angeles and surrounding markets—but they aren’t taking the big box spots left over from recent store closures. These boutique fitness centers, like cycling classes and yoga studios, are typically leasing 3,000 to 6,000 square feet of space. At the same time, big gyms—that typically do lease larger footprints—are going away. The good news: small fitness operators can afford high rents and are expanding to new locations.

“You are never going to get cool, cache fitness concepts taking over 50,000 square feet,” Alex Koustas, a broker at The Agency, tells GlobeSt.com. “Physical fitness is changing, and it is becoming more niche and more cache. It is more community oriented. The days of going to the big gym have transitioned, and you aren’t seeing those as often any more.”