Equinox Tops Macy’s as NYC’s #1 Retail Tenant

Equinox surpassed Macy’s as Manhattan’s largest retail tenant, occupying 1.3 MSF across 31 locations.

Jordan B. & Han-Gwon Lung
February 04, 2025

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Good morning. Luxury gym chain Equinox has quietly outpaced traditional retailers like Macy’s and Whole Foods, becoming Manhattan’s largest retail tenant with an aggressive expansion strategy fueled by a $1.8 billion investment.

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🎙️ No Cap is back for Season 2! Co-hosts Alex Gornik and Jack Stone break down the biggest CRE headlines to kick off the year. Watch or listen now!

Market Snapshot

S&P 500

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5,994.57

Pct Chg:
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FTSE NAREIT

FNER

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Pct Chg:
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10Y Treasury

TNX

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SOFR

30-DAY AVERAGE

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Pct Chg:
0.0%

*Data as of 02/03/2024 market close.

Retail rising

How Equinox Became Manhattan’s Biggest Retail Tenant

Move over Macy’s—Equinox now holds the crown for the most retail space in Manhattan, thanks to an aggressive expansion push backed by a $1.8 billion investment.

Breaking it down: Equinox has 31 clubs across Manhattan, totaling 1.3 million square feet, surpassing Macy’s 1.25 million square feet. The luxury gym chain is negotiating its 33rd location, with each club averaging 40,000+ square feet.

Growth playbook: Since its first Upper West Side location in 1991, Equinox has grown strategically—initially focusing on flagship locations before shifting to filling in gaps between existing gyms. Its recent $1.8B investment from Sixth Street and Silver Lake has reignited expansion plans, including new-build projects designed alongside developers.

National expansion: While Equinox remains a dominant force in Manhattan, it’s also making moves in Los Angeles, Miami, and second-tier cities like Charlotte, Denver, Seattle, and Atlanta. It recently announced a new Boca Raton club, signaling further expansion.

Competition heats up: Equinox isn’t the only player in town. Life Time Fitness now operates seven Manhattan locations, including an 80,000-square-foot flagship at One Wall Street. Additionally, a new wave of gyms embracing a mid-century “sporting club” aesthetic is gaining traction.

➥ THE TAKEAWAY

If you can make it there: Equinox’s no-limits approach to expansion is redefining fitness real estate. With deep pockets and an ambitious growth plan, the luxury gym giant could double in size, solidifying its dominance in high-end fitness—and beyond.

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✍️ Editor’s Picks

Recovery timeline: CoStar sees signs of CRE rebound, with stabilization expected by late 2025, though risks like inflation and interest rates remain.
Record high: Distressed CRE assets in the US reached $107B in Q4, a decade-high, with office properties making up 50%. Multifamily distress is also rising, potentially reaching $108.7B.
Net income surge: Blackstone’s (BX) net income surged 1,117% in Q4, driven by strong performance in its diversified portfolio, but real estate investments posted negative returns.
Debt fund raise: Heitman surpassed its $600M target, raising $806M for its real estate debt fund to target market dislocation and provide creative financing solutions.
Facing foreclosure: RFR Realty’s Aby Rosen faces a second foreclosure at 285 Madison Avenue, with DAOL Asset Management scheduling an auction amid overleveraged debt on the property.
Climate change impact: A First Street Foundation report predicts $1.47T in property value losses by 2055 due to rising insurance costs and shifting demand from climate risks.

🏘️ MULTIFAMILY

Absorption soars: Q4 multifamily absorption hit a record 183.6K units, with national vacancy rates falling to 4.9% and rent growth remaining positive.
Offloading housing: Lendlease sold its US military housing portfolio to Guggenheim Partners affiliate Centinel Public Partnerships for $320M as part of its exit from US and UK developments.
New top 10: The top 10 US metros for multifamily deliveries in 2024 included Dallas, Austin, and Atlanta, with the Sun Belt dominating and 204.3K units completed across these cities.

🏭 Industrial

Ohio expansion: BJ's Wholesale Club (BJ) will build a new 500+ KSF distribution center in Ohio, marking its fourth facility in the state to enhance supply chain operations.
Aerospace gains: As high rents push logistics firms out of Orange County, aerospace and advanced manufacturing companies, including Hyundai’s flying taxi division, are stepping in to fill the void.

🏬 RETAIL

Luxury shift: As mainstream retailers exit San Francisco’s Union Square, high-end brands like Chanel and Bulgari are expanding, capitalizing on prime vacancies to cater to affluent shoppers.
Net lease slowdown: Net lease retail investment fell to $11.3B in 2024, as rising cap rates and borrowing costs create volatility; private investors dominate, while international activity drops.

🏢 OFFICE

Blackstone’s big bet: Blackstone (BX) is negotiating to buy 1345 Avenue of the Americas in Midtown Manhattan, signaling a return to NYC’s office market with a focus on premium spaces.
Bay Area expansion: Despite plans to shrink its footprint, Meta (META) increased its occupied Bay Area offices to 9 MSF by the end of 2024, up from 7 MSF a year earlier.
Glad in Glendale: Developer Izek Shomof purchased the 19-story Glendale office building at 101 North Brand Blvd for $58.8M, less than half its 2016 price.

🏨 HOSPITALITY

New Orleans hotel: Omni Hotels & Resorts will develop a $575M, 1K-room hotel across from the Ernest N. Morial Convention Center, opening in 2029.

📈 CHART OF THE DAY

According to CoStar, Washington, DC’s commercial property sales rose by $4B in 2024, rebounding from 2023 but still below the decade-long annual average.