The Rise Of The Boutique Fitness Center

4/12/17

Consumers choosing specialization over big-box environment experience, highlighted by ability to share classes with like-minded individuals in more intimate setting


Danielle Vida, Deb Vojik, Randie Miller, Yon Kee and Yashira Moran assume a yoga position at Baltimore Hot Yoga and Wellness in the Parkville section of Baltimore County.

Kyle Jakobe, owner of Sweat Performance has decided to more than double the amount of space his health and fitness center is leasing from Hill Management Services, Inc. at Fairgrounds Business Center in Timonium. The reason was simple and proven by raw numbers. Like other operators that manage “boutique fitness centers” and compete against big-box environments, Jakobe noticed a definitive trend among users in search of a more personalized and custom-tailored experience.


Kyle Jakobe, owner of Sweat Performance.

“Because the creation and nurturing of a personal relationship means everything in this business, a smaller environment creates more intimacy and also significantly increases the chances for long-term results,” explained Ali Sopher, Manager of Sweat Performance. “If you miss a workout or two, the bells and whistles go off and we start looking for you to make sure everything is OK. Where has Becky been the last week, we might ask? If you are a member of a big-box fitness club, they only become concerned if you miss a payment.”

Over the past six months, Hill Management Services has leased new space or executed expansions with seven different independent fitness or exercise operators in the greater Baltimore metropolitan region. The concepts have ranged from dance studios to hot yoga to personalized weight training facilities. “We continue to see major growth and significant changes occurring in this sector, as consumers become more educated about the choices they have, as well as more aware of the differences that each concept provides,” explained Danielle Beyrodt, Vice President of the company. “Fitness center decisions were typically made primarily based on monthly membership costs and the location of the facility. Whichever fitness center was closer to an individual’s place of residence, was typically the winner.”

“Over the past several years, the proliferation of boutique facilities that specialize in a particular exercise concept, or focus specifically on body contouring, weight loss, overall wellness or personal training, has fragmented the industry and also led to the emergence and success of independent operators. We detect the movement towards smaller, personalized classes, at the expense of super-sized fitness concepts that focus on generating volume memberships. Each of our tenants believe in the value of establishing a personal relationship with each member that emphasizes accountability and results.”

Stanley Anderzejewski who has operated Greater Baltimore Yoga for more than twenty years, and started teaching yoga classes in 1985, indicated that yoga remains extremely popular after hitting its zenith around 1995. He currently teaches to “people searching to improve their overall well-being and to achieve mindfulness and skillfulness,” from his space at Timonium Corporate Park in Baltimore County. “There are many different ways to stay healthy, but yoga most often appeals to people between 40 and 70 years of age. Our classes consist of like-minded individuals who are looking to correct postural inefficiencies. What we offer is extremely specialized.”

“We are all about establishing personal relationships, creating a culture and making everyone feel extremely important. You are not even allowed to just walk into our facility and start working out just because the mood strikes you. You need a professional trainer overseeing your activity at all times,” added Ali Sopher of Sweat Performance. “We also visit local companies and execute customized fitness and exercise programs that are specifically tailored for that organization. The company subsidizes the cost. We have made a significant impact with the reduction of employee sick time and tardiness. Everyone is singularly focused on results.”

Deborah Vojik recently expanded her Baltimore Hot Yoga facility within Harford Road Plaza from 3600 to 5000 square feet of space to accommodate additional yoga programming offerings to keep her classes fresh and to address the needs of her customers, which are typically females between the ages of 32 and 65. “People want more offerings than hot yoga and traditional yoga classes,” Vojik explained, “which is why we have expanded into programs such restorative yoga, hot Pilates, yoga nidra, high intensity interval training and gentle yoga that focuses on physical postures, breathing and meditation.

“My consumers gravitate to our intimate boutique setting, but it is also extremely important to offer a one-stop shop so they be exposed to every yoga element and class without visiting different locations. I recently became certified to offer yoga therapy, so I see that avenue as another growth market. You need to keep one step ahead of the current trends, and adapt accordingly. In a few months, there will be the next alliteration,” Vojik added.

Elevation Corporate Health operates a string of corporate fitness facilities within commercial office buildings to provide the ultimate in convenience to time depraved and stressed-out office workers, including a 7800 foot facility in the underground Main Street section of the Executive Plaza complex in Hunt Valley. “Sure, a different fitness facility might be only ten minutes away, but that involves getting into your car, driving, parking and putting your coat on. However, we are a thirty second elevator ride away,” stated Tom Kapp, a Partner with the company.

“We see the bulk of our workout sessions occurring around the lunchtime period, but before and after work are also brisk times. While convenience is key, our members would not keep coming back if not for the achievement of solid results. We perform preliminary physical assessments on each individual before instituting a program. We believe in the ‘Cheers’ model where everyone here knows your name, with membership ranging between 500 and 800 people. This translates to better accountability,” Kapp added.

South Baltimore Strength and Conditioning is a fitness studio operated within the Russell Street Warehouse in Baltimore City and is co-owned by Sean McCullagh. The 6000 square foot space, which includes treatment rooms, was remodeled to accommodate the new configuration, which was completed last summer.“Consumers are perceptive and realize when something isn't working, and we see that tide turning in the fitness market with a flight from the big box gyms with large group classes,” McCullagh explained.

“Random, irregular workouts and part-time trainers is not the recipe for long-term success and sustainable results. We were convinced about the wisdom of switching to a smaller boutique- style model with the understanding they we were delivering a quality product with professional coaches. Now each of our clients receives a fully-individualized training program, nutrition plan, lifestyle coaching, and one-on-one counseling every six weeks to make sure they remain on track. Our environment remains fun and social, because everyone still works out together with a coach that monitors safety and effectiveness.”

Founded in 1976, Hill Management Services, Inc. is a privately-owned, full-service real estate development company. Located in Timonium, Maryland, Hill Management owns more than four-million square feet of office, industrial and retail space as well as several hotel and self-storage facilities. Hill Management Services seeks to provide long-term investments, exceptional customer service, and develop long-lasting tenant-landlord relationships. For more information visit www.hillmgt.com