Last updated Oct 20, 2026
In short
Gym buildout costs about $10 to $30/sq ft in second-generation gym space, $40 to $90/sq ft in second-generation retail or office, and $90 to $150 or more per sq ft in a raw shell. The Southeast is the lowest-cost region in the U.S. for retail fit-outs. Budgets blow up on HVAC, electrical, plumbing and permit delays far more often than on finishes.
- $117/sq ft [1]: Southeast in-line retail fit-out average, 2025.
- $157/sq ft [2]: U.S. retail fit-out average, 2026.
- $15 to $35/sq ft [3]: commercial HVAC upgrade budget for a gym.
- 4.54% [4]: year-over-year construction cost growth in Nashville, Q2 2025.
Second-generation space vs. a raw shell
- Second-generation gym space: existing rubber floors, mirrors, restrooms and HVAC sized for workouts, so the work is mostly cosmetic. Vagaro estimates a former fitness space can save $30,000 or more.
- Second-generation retail or office: restrooms and HVAC exist but are rarely sized for a gym. Expect demo, flooring, electrical and HVAC upgrades. ABC Fitness puts basic interior buildout at around $40/sq ft. Installed 3/8-inch rubber flooring adds $2.50 to $4.00/sq ft.
- Raw or cold dark shell: you build everything. The Workout Mag estimates a cold dark shell adds $40 to $80/sq ft in upfront buildout, even though base rent is lower.
For benchmarking, Cushman & Wakefield's 2025 guide puts the Southeast fit-out average at $117/sq ft against $155 nationally, and its 2026 guide puts the national figure at $157.
Where budgets blow up
- HVAC. Gyms produce far more heat and humidity than retail. The Workout Mag budgets $15 to $35/sq ft for commercial HVAC upgrades.
- Electrical. Treadmills, saunas and cold plunges need dedicated circuits. Commercial traditional sauna heaters typically need 208V three-phase power.
- Plumbing. Adding restrooms or showers can mean cutting slab.
- Code-driven items. The 2021 IBC classifies gymnasiums without spectator seating as Group A-3 assembly use, while small tenant spaces under 50 occupants can be classified as Group B under §303.1.1. The classification drives sprinklers, fire alarms, exits and restroom counts.
- Permit timing. Every re-review cycle adds weeks of rent with no revenue. Metro Nashville allows 30 days for plan review and accepts third-party review for tenant finish-out. Local timelines are in the city guides for Nashville, Charlotte, Chattanooga and Asheville.
Are Southeast construction costs rising?
Yes, moderately. Rider Levett Bucknall's Q2 2025 East report lists year-over-year construction cost growth of 4.54% in Nashville.
How to keep buildout under budget
- Get an MEP (mechanical, electrical, plumbing) walk-through before you sign the lease.
- Negotiate a TI allowance and make the landlord responsible for delivering working HVAC.
- Design the floor plan around revenue per sq ft: training floor first, then amenities.
- Hold 10% to 15% contingency.
- Budget for stamped drawings. Buncombe County's commercial checklist requires plans sealed by a registered architect or licensed engineer, and most jurisdictions have similar rules.
- Price wet amenities separately. Our sauna and cold plunge guide covers their electrical and plumbing needs.
See also: how much it costs to open a gym, small gym startup costs and commercial gym equipment cost.
Frequently asked questions
What is the average buildout cost for a gym? It depends on space type. The Southeast retail fit-out average is $117/sq ft. Second-generation gym space can cost a fraction of that.
Does the landlord pay for gym buildout? Often in part, through a tenant improvement allowance. You negotiate it in the lease.
Is HVAC required for a gym? Yes. HVAC sized for workouts is one of the most common unbudgeted upgrades.
Sources
- Fit Out Cost Guide 2025: Americas Retail. Cushman & Wakefield, 2025. Accessed Oct 20, 2026.
- 2026 U.S. Retail Fit Out Cost Guide. Cushman & Wakefield, 2026. Accessed Oct 20, 2026.
- How Much Is It to Start a Gym? 2026 Cost Benchmarks. The Workout Mag, 2026. Accessed Oct 20, 2026.
- RLB Construction Cost Report: East Q2 2025. Rider Levett Bucknall, 2025. Accessed Oct 20, 2026.
- Gym Startup Costs in 2026: What It Really Takes to Open Your Doors. Vagaro, 2026. Accessed Oct 20, 2026.
- The Cost of Owning a Gym in 2026: Full Breakdown. ABC Fitness, 2026. Accessed Oct 20, 2026.
- Saunas for Gyms, Spas & Wellness Centers: The Complete Commercial Buyer's Guide. Haven of Heat. Accessed Oct 20, 2026.
- 2021 International Building Code, Section 303.4: Assembly Group A-3. International Code Council. Accessed Oct 20, 2026.
- 2021 International Building Code, Chapter 3: Occupancy Classification and Use. International Code Council. Accessed Oct 20, 2026.
- Commercial Permit FAQ (6/2026). Metro Nashville Codes and Building Safety, June 2026. Accessed Oct 20, 2026.
- Commercial Checklist. Buncombe County Permits & Inspections. Accessed Oct 20, 2026.
