Costs and funding

    How Much Does It Cost to Open a Gym? A Line-by-Line Breakdown with 2026 Southeast Pricing

    October 23, 2026

    Last updated Oct 20, 2026

    In short

    Opening a gym costs about $65,000 to $160,000 for 1,500 sq ft, $105,000 to $250,000 for 2,500 sq ft, and $205,000 to $515,000 for 5,000 sq ft in second-generation gym space, before working capital. A raw shell roughly doubles or triples those totals. The Southeast is the cheapest region in the U.S. to fit out retail space, but rent ranges widely: Chattanooga runs about a third below the national average and Nashville runs above it.

    • $117/sq ft [1]: Southeast in-line retail fit-out average, 2025. The national average was $155.
    • $157/sq ft [2]: U.S. retail fit-out average in the 2026 guide.
    • $17.73 to $31.07 [3]: 2026 retail asking rent per sq ft, Chattanooga to Nashville.
    • 50% to 60% [4]: share of a typical gym budget that goes to build-out and renovation.
    • $30,000+ [5]: typical savings from leasing a former fitness space.
    • 7.00% [6]: bank prime rate in October 2026, the base for most SBA 7(a) loans.
    • 81 million [7]: Americans with a fitness facility membership in 2025, a record.

    Cost by size and space type

    The type of space you lease moves your budget more than any other choice. These ranges come from a planning model built on the public 2025 to 2026 price points cited on this page. They are not quotes, so use them to size a budget and then replace them with real bids.

    • 1,500 sq ft: $65K to $160K in second-generation gym space, $110K to $250K in second-generation retail or office, and $185K to $340K in a raw or cold dark shell. Add $27K to $40K for a three-month operating reserve.
    • 2,500 sq ft: $105K to $250K in second-generation gym space, $180K to $400K in retail or office, and $305K to $550K in a shell. Add $39K to $60K of reserve.
    • 5,000 sq ft: $205K to $515K in second-generation gym space, $355K to $815K in retail or office, and $605K to $1.1M in a shell. Add $78K to $120K of reserve.

    These ranges use buildout at $10 to $30/sq ft for second-generation gym space, $40 to $90/sq ft for retail or office, and $90 to $150/sq ft for a shell. Equipment follows the size bands in our commercial gym equipment cost guide. Deposits and first month's rent use Southeast retail rents of $24 to $31/sq ft plus $2 to $4/sq ft in NNN charges.

    One-time costs

    Gymdesk estimates that build-out and renovation take 50% to 60% of a typical gym budget, with equipment at 20% to 30%. The main one-time lines are:

    • Buildout and renovation. The largest and most variable line. See gym buildout cost per square foot.
    • Equipment and flooring. About $30K to $70K at 1,500 sq ft and $100K to $250K at 5,000 sq ft, new commercial grade.
    • Lease deposit and first month. Usually one to two months of rent plus NNN charges.
    • Design, permits and legal. Architect drawings, permit fees, entity formation and lease review.
    • Tech setup. Booking, billing, access control, cameras and audio. Gymdesk lists its own software at $75 to $200 a month, depending on member count.
    • Signage, furniture and front desk.
    • Presale marketing. Ads, landing page, signage and launch events. See the gym presale playbook.

    Buildout cost per square foot

    Cushman & Wakefield's 2025 guide puts in-line retail fit-outs at $155/sq ft nationally and $117/sq ft in the Southeast, the lowest-cost region. Its 2026 guide puts the national average at $157/sq ft. Gym-specific items stack on top of a retail shell: The Workout Mag budgets $15 to $35/sq ft for commercial HVAC upgrades and $2.50 to $4.00/sq ft installed for 3/8-inch rubber flooring.

    Equipment

    Commercial list prices include about $1,180 for a Rogue RML-490 power rack, $960 for a Rogue 5 to 50 lb rubber hex dumbbell set, $5,399 for a Matrix T75 treadmill and from $7,599 for a Life Fitness Club Series+ treadmill. Package costs by size band are in the equipment cost guide.

    Monthly operating costs

    Gymdesk estimates $3,500 to $13,500 a month for a small gym and $13,500 to $32,000 for a mid-size gym. Rent and payroll drive most of it. Base rent alone on 2,000 sq ft runs about $2,955 a month in Chattanooga at $17.73/sq ft and $5,178 in Nashville at $31.07/sq ft. For payroll, BLS puts median pay for fitness trainers at $47,160 a year, or $22.67 an hour, as of May 2025. For utilities, average commercial electricity ran 13.43 cents per kWh in Tennessee and 10.73 cents in North Carolina in July 2026. The full breakdown is in monthly cost to run a gym.

    Hidden costs

    Licenses, permits and insurance

    Expect a building permit for any buildout, trade permits (electrical, plumbing, mechanical), a certificate of occupancy, sign permits, and business registration with your state and city or county. Insureon reports that gyms pay an average of $69 a month for general liability, $86 for a business owner's policy, $42 for professional liability and $102 for workers' compensation.

    Occupancy class matters too. The 2021 IBC lists gymnasiums without spectator seating as Group A-3 assembly use, which can add egress, restroom and sprinkler requirements. In Nashville, the June 2026 commercial permit FAQ sets a 30-day plan review window and accepts third-party review for tenant finish-out.

    Both of GGC's states regulate prepaid memberships. In North Carolina, G.S. 66-124 requires a bond or escrow account when memberships are sold before services are available. In Tennessee, health clubs must post a $25,000 surety bond per location, or file an audited statement showing $10 million in net worth. Details are in the presale guide.

    How to pay for it

    The Federal Reserve raised its target range to 3.75% to 4% on September 16, 2026, and the bank prime rate stood at 7.00% in mid-October 2026. SBA caps 7(a) variable rates at prime plus 3.0% to 6.5%, depending on loan size, so a loan above $350,000 tops out near 10.00%. A strong presale cuts what you borrow. See how to fund a gym.

    Cost by gym type

    • Personal training studio (800 to 2,000 sq ft): driven by the lease and a small equipment package.
    • Strength or group training gym (1,500 to 5,000 sq ft): driven by racks, free weights and flooring.
    • Boutique studio (1,500 to 3,500 sq ft): driven by specialty equipment, audio and lighting.
    • Recovery-focused or hybrid (1,500 to 3,000 sq ft): driven by sauna, cold plunge, electrical and plumbing.
    • Small commercial gym (5,000 to 10,000 sq ft): driven by the cardio fleet, HVAC and locker rooms.

    As a national comparison, Vagaro estimates $25K to $100K for personal training studios, $70K to $250K for boutique studios and $100K to $500K for small commercial gyms.

    Southeast costs vs. national averages

    The Southeast is cheaper to fit out but not always cheaper to rent. MMCG puts the U.S. average retail asking rent at $26.21/sq ft, while TenantBase cites $24.69. Against that:

    Fit-out is the Southeast's advantage: Cushman & Wakefield's $117/sq ft Southeast average is about 25% below the national $155.

    Demand is growing too. Charlotte added 20,731 residents from 2024 to 2025, the largest numeric gain of any U.S. city, and Nashville-Davidson added 9,244. Nationally, a record 81 million Americans held a fitness facility membership in 2025, up 5.2%.

    Will the gym pay back the investment?

    HFA's 2025 benchmarking report found a median EBITDA margin of 23.6% across 175 operators, a sample weighted toward larger chains. Startcosts estimates gyms earn $50 to $100 in annual revenue per sq ft, and Two-Brain Business puts median owner profit for big-group gyms at $52,200 a year in its 2025 data. Realistic numbers for independents are in gym profit margins.

    How to reduce the cost

    1. Lease second-generation gym space. Vagaro notes a former fitness space can save $30,000 or more on flooring, mirrors and buildout.
    2. Negotiate a tenant improvement allowance and free rent during buildout.
    3. Buy equipment factory-direct or mix new and used.
    4. Fund part of the opening with presale revenue. See how to fund a gym.
    5. Phase in amenities. Add a sauna and cold plunge once membership supports them.

    Related guides

    See also: gym marketing for new gyms, how much to spend on gym marketing and gym presales.

    Frequently asked questions

    How much does it cost to open a small gym? About $65,000 to $250,000 for 1,500 to 2,500 sq ft in second-generation gym space, plus three or more months of operating reserve.

    What is the cheapest way to open a gym? Lease a former gym, buy a lean equipment package, and presell memberships before opening.

    How much does gym buildout cost per square foot? Cushman & Wakefield puts Southeast retail fit-outs at $117/sq ft in 2025. Second-generation gym space can cost far less.

    How long until a gym is profitable? No primary survey tracks gym break-even timelines. Model it by dividing monthly costs by average revenue per member, as shown in our gym profit margins guide.

    Is it cheaper to open a gym in the Southeast? Fit-out is cheaper. Rent depends on the city: Chattanooga is well below the national average and Nashville is above it.

    Sources

    1. Fit Out Cost Guide 2025: Americas Retail. Cushman & Wakefield, 2025. Accessed Oct 20, 2026.
    2. 2026 U.S. Retail Fit Out Cost Guide. Cushman & Wakefield, 2026. Accessed Oct 20, 2026.
    3. Chattanooga, TN Retail Market Report Q1 2026. Matthews, 2026. Accessed Oct 20, 2026.
    4. How Much Does It Cost to Open a Gym? The 2026 Guide. Gymdesk, 2026. Accessed Oct 20, 2026.
    5. Gym Startup Costs in 2026: What It Really Takes to Open Your Doors. Vagaro, 2026. Accessed Oct 20, 2026.
    6. H.15 Selected Interest Rates. Board of Governors of the Federal Reserve System, October 2026. Accessed Oct 20, 2026.
    7. 81 Million Americans Were Members of a Fitness Facility in 2025. Health & Fitness Association, April 2026. Accessed Oct 20, 2026.
    8. How Much Does Retail Space Cost in 2026?. TenantBase, 2026. Accessed Oct 20, 2026.
    9. Gym Software Cost Guide 2026. Gymdesk, 2026. Accessed Oct 20, 2026.
    10. How Much Is It to Start a Gym? 2026 Cost Benchmarks. The Workout Mag, 2026. Accessed Oct 20, 2026.
    11. Power Racks. Rogue Fitness. Accessed Oct 20, 2026.
    12. Rogue Dumbbell Sets: Rubber Hex. Rogue Fitness. Accessed Oct 20, 2026.
    13. Commercial Fitness Equipment. 360 Fitness Superstore. Accessed Oct 20, 2026.
    14. Life Fitness Equipment. Life Fitness. Accessed Oct 20, 2026.
    15. Nashville Retail Market Report Q2 2026. Matthews, 2026. Accessed Oct 20, 2026.
    16. Fitness Trainers and Instructors: Occupational Outlook Handbook. U.S. Bureau of Labor Statistics. Accessed Oct 20, 2026.
    17. Electricity Rates by State. Choose Energy, using EIA data, 2026. Accessed Oct 20, 2026.
    18. Startup Costs for a Gym (2026). DojoBusiness, 2026. Accessed Oct 20, 2026.
    19. Gym Insurance Costs. Insureon. Accessed Oct 20, 2026.
    20. 2021 International Building Code, Section 303.4: Assembly Group A-3. International Code Council. Accessed Oct 20, 2026.
    21. Commercial Permit FAQ (6/2026). Metro Nashville Codes and Building Safety, June 2026. Accessed Oct 20, 2026.
    22. G.S. 66-124: Bond or Escrow Account Required. North Carolina General Assembly. Accessed Oct 20, 2026.
    23. Tenn. Code § 47-18-318: Surety Bond. Justia, Tennessee Code. Accessed Oct 20, 2026.
    24. Federal Reserve Issues FOMC Statement. Board of Governors of the Federal Reserve System, September 16, 2026. Accessed Oct 20, 2026.
    25. SBA Lender Resources. U.S. Small Business Administration. Accessed Oct 20, 2026.
    26. U.S. Retail Market Report 2026: Vacancy, Rents, Cap Rates and the Store Closure Ledger. MMCG Invest, 2026. Accessed Oct 20, 2026.
    27. Charlotte, NC Retail Market Report Q2 2026. Matthews, 2026. Accessed Oct 20, 2026.
    28. Asheville, NC Retail Space for Lease. PropertyShark, September 2026. Accessed Oct 20, 2026.
    29. Population Growth Holds Steady in Midsized Cities Amid Widespread Slowdown. U.S. Census Bureau, May 2026. Accessed Oct 20, 2026.
    30. 2025 Fitness Industry Benchmarking Report. Health & Fitness Association, 2025. Accessed Oct 20, 2026.
    31. How to Start a Gym in 2026. Startcosts, 2026. Accessed Oct 20, 2026.
    32. Two-Brain Business State of the Industry: 2025 Results. Two-Brain Business, November 2025. Accessed Oct 20, 2026.

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