Health and Wellness Boom Reshaping CRE
Hybrid work and shifting consumer preferences after the pandemic are sparking a revolution in wellness, reshaping commercial real estate as both tenants and investors increasingly seek spaces that promote health and the community. According to Altus Group, Class-A buildings featuring fitness centers and outdoor spaces are attracting tenants willing to pay a premium for healthier environments.
The post-pandemic shift toward hybrid work, combined with changing consumer priorities, has sparked a revolution in the wellness sector, leading to its integration across real estate markets. What started as a trend in multifamily and office properties has now spread to senior living and hospitality. Wellness offerings have evolved from simple fitness centers and break rooms to more sophisticated amenities that promote health, longevity, and community engagement.
In multifamily and senior living spaces, wellness features are becoming standard. Active adult communities, catering to baby boomers who prioritize health and connectivity, now offer gyms, pools, pickleball courts, and walking trails. Multifamily developments, likewise, are incorporating natural light, outdoor spaces, and health-conscious programming to appeal to wellness-driven renters.
“Traditional amenities like fitness centers and saunas are still expected, but we’re seeing a rise in social and health-focused features like VR exercise classes, hydrotherapy massage rooms, golf simulators, and multi-use courts,” said Michele Crochetiere, senior director at Altus Group. “Some high-end properties are even bundling these offerings into membership packages to boost ancillary income.”
The hospitality sector has embraced wellness too, particularly in luxury retreats in destinations like Mexico, Spain, and Thailand. These resorts now offer wellness programs that include yoga, meditation, and even cutting-edge treatments like detox programs and neurocognitive assessments.
Mixed-use developments are also integrating wellness into their designs. Open-air spaces, boutique fitness studios, and healthy food halls are becoming must-haves in these projects, appealing to young professionals balancing work and life. By prioritizing wellness, developers are meeting the growing demand for healthier environments and attracting investors eyeing high-performing assets.
The wellness market has seen explosive growth, with McKinsey estimating the U.S. wellness sector at $480 billion, growing at 5-10% annually. Globally, it reached $6.32 trillion in 2023, with North Americans spending over $5,000 per year on wellness. As consumer demand shifts, commercial real estate’s focus on health-centered spaces will increasingly shape the future of office and mixed-use properties.
Source: GlobeSt/ALM