Gym Leases in Australia: Finding and Negotiating Your Space
Gym Leases in Australia: Finding and Negotiating Your Space
The short answer: Look for 150 to 400 sqm with at least 3 metre ceilings if you plan to run racks or rigs, a ground floor or an engineered slab that can take heavy equipment, parking your members will use, and a permitted use that explicitly covers fitness or recreation, not just general commercial. The lease terms that matter most are the fit-out contribution, any rent-free period, the make-good clause, and whether there is a demolition clause that could end your lease early. Get your design and equipment quote ready before you sign, because that is what starts your finance and fit-out moving the same week.
How much space you need
The right floor size depends entirely on your member model. There is no single correct number, but these ranges cover most independent gyms VERVE has helped fit out.
| Member model | Typical floor size | Notes |
|---|---|---|
| Single-coach strength studio | 100 to 150 sqm | Tight but workable for a focused strength offering |
| Open-gym strength and conditioning | 200 to 300 sqm | Room for racks, conditioning and a small functional zone |
| Hybrid with group training and recovery | 300 to 400 sqm | Adds a dedicated recovery zone alongside open gym |
| Full facility with Pilates, recovery and open gym | 400+ sqm | Widest member base, highest equipment and fit-out spend |
If you are not sure which model fits your market, our business plan guide walks through pricing and break-even by model, which will tell you how much space you can actually afford to fill.
What gym space costs
Industrial and warehouse space, the most common choice for a strength or conditioning gym because of the ceiling height, commonly runs $120 to $350 per sqm per year plus outgoings. Metro retail space is usually higher again, and rarely has the ceiling clearance a rig needs without costly structural work. These are typical ranges, not a quote: rent varies enormously by suburb, building age and how motivated the landlord is, so pull comparable listings for your actual area before you make an offer.
On top of base rent, budget for outgoings (council rates, building insurance, common area costs passed through by the landlord) and bond, commonly 3 to 6 months of rent paid up front.
Rent reviews are worth understanding before you sign, not after the first increase lands. Most commercial leases increase rent annually, either by a fixed percentage or tied to CPI, and some include a market review at the start of an option period that can move rent by more than either of those. Ask what the increase mechanism is and run the worst case through your numbers, not just the opening rent.
The lease terms that matter
The headline rent figure is only part of the deal. These are the clauses that decide whether the lease is actually workable for a gym.
- Fit-out contribution. Cash or a rent credit the landlord puts towards your build, common on a bare shell that needs real work to become tenantable.
- Rent-free period. Weeks or months of no rent while you complete the fit-out, so you are not paying for a space you cannot yet trade from.
- Permitted use. The lease must explicitly allow fitness or recreation use. A generic commercial or retail use clause is not the same thing and can block your council application.
- Make-good. What you are required to restore when you leave. For a gym with bolted plant, structural anchors and new services, this can be a genuine cost.
- Options to renew. The right, not the obligation, to extend your lease at the end of the term, commonly structured as several fixed terms in a row.
- Demolition clauses. A landlord's right to end the lease early for redevelopment. Worth negotiating out, or at minimum extending the notice period.
- Rent reviews. How and when rent increases, fixed percentage, CPI-linked, or a market review at each option. Get the mechanism in writing and cap it if you can, because an uncapped market review can move your biggest fixed cost significantly at the worst time.
Red flags
- Permitted use that does not clearly cover fitness, recreation or gym operation.
- A demolition clause with a short notice period and no compensation.
- No fit-out contribution or rent-free period offered on a bare shell that needs significant work.
- Outgoings that are not itemised or capped, leaving you exposed to unpredictable annual increases.
- A personal guarantee that extends well beyond a reasonable lease term.
- A lease term too short to reasonably earn back your fit-out and equipment spend.
Run any lease you are considering through the free Lease Reviewer tool, free with a sign-up, to get a clear read on risk and negotiation points before you commit.
Council use class and DA basics
Most Australian councils classify a gym as a recreation facility (indoor), or the equivalent term under your state's planning scheme, and that classification usually requires development consent, even in a space that has previously operated as a commercial premises. Do not assume an existing commercial lease means the fitness use is automatically approved. If you are planning 24-hour access, expect the council to ask about acoustic treatment and after-hours safety measures as part of the approval.
Council and certification costs typically run $2,000 to $10,000, and the time this takes varies widely by council, so confirm the use class before you sign, not after.
Get the use class confirmation in writing from the council, not a verbal answer from the leasing agent. An agent telling you a space "should be fine for a gym" is not the same as council confirming the use is permitted as of right, or that it only needs a straightforward assessment rather than a full merit-based application. The difference between those two paths can be measured in months, and it changes the risk you are taking on by signing before approval is confirmed.
The lease-not-landing trap
The most common thing that delays a new gym opening is the lease not landing when expected, followed by finance approval and freight to regional sites. The founders who avoid this get their design and equipment quote ready in parallel with lease negotiations, not after. An itemised quote is what unlocks equipment finance, so having it ready means finance and fit-out can start the day the lease is signed instead of weeks later.
Send VERVE your floor plan or a draft lease plan while negotiations are still open, and we will start the free 2D and 3D design in parallel. See our fit-out and equipment guide for how that process works.
It is also worth asking the landlord for early access to the space, sometimes called a licence to fit out, which lets your trades and installers start work before the lease formally commences. Not every landlord will agree to it, but it is a reasonable thing to ask for, and when it is granted it can take weeks off your total timeline for very little cost to either side.
Before you sign, confirm
- Permitted use explicitly covers fitness or recreation.
- Ceiling height is at least 3 metres in your training zones.
- The slab can take the point loads of racks, rigs and heavy plate storage.
- Council use class and any DA requirements have been confirmed in writing.
- Fit-out contribution or rent-free period, if any, is in the lease, not a verbal promise.
- Make-good obligations are clearly defined and realistic.
- There is no demolition clause, or the notice period is workable.
- Your equipment and fit-out quote is ready to go the day you sign.
Get your free 3D gym design: send us your floor plan and most founders have renders back within a week, then a video walkthrough and as many layout changes as it takes. Request your free design here, or plan your numbers with the free founder tools.
Frequently asked questions
How much square metreage do I need for a gym?
It depends on your model. A single-coach strength studio can work in 100 to 150 sqm, an open-gym strength and conditioning offering typically needs 200 to 300 sqm, and a hybrid gym with group training and a recovery zone usually needs 300 to 400 sqm or more.
What is a fair rent for gym space in Australia?
Industrial and warehouse space commonly runs $120 to $350 per square metre per year plus outgoings, and metro retail is usually higher again. Rent varies enormously by suburb and building quality, so check comparable listings locally rather than relying on a single number.
What is a make-good clause and why does it matter for a gym?
A make-good clause requires you to restore the premises to its original condition when the lease ends, which can be a real cost when you have bolted racks to a slab and run new power and data. Ask exactly what make-good means in your lease before you sign, not when you exit.
Should I avoid a demolition clause in my lease?
A demolition clause lets the landlord end your lease early if they plan to redevelop the building. For a gym with heavy fixed plant and a fit-out you cannot easily relocate, a demolition clause with a short notice period is a real risk worth negotiating out or shortening the notice window for.
How long should my gym lease term be?
Long enough to earn back your fit-out and equipment spend with room to spare, commonly 5 years with options to renew (for example, 5 plus 5 plus 5). A short term relative to the size of your investment leaves you exposed if the landlord chooses not to renew.
Do landlords contribute to gym fit-out costs?
Sometimes, particularly for a bare shell that needs significant work to become tenantable. It is common to negotiate a fit-out contribution or a rent-free period covering the build period. Whether you get one depends on the building, the market, and how much you ask for.
What council approval do I need to open a gym?
Most councils classify a gym as a recreation facility (indoor) or the state equivalent, which usually needs development consent, even in a previously commercial space. Confirm the use class with the council before you sign the lease.
Ready to see your gym before you build it? Request your free 3D design and have renders back within the week, or run your numbers first with the free founder tools.