Equinox Targets 40K Sq Ft in Fulton's $300M Project Amid $1.8B Boost

Key Takeaway

• Equinox is negotiating a lease for 40,000 square feet in Fulton Market's new 409,000-square-foot office development, signaling luxury gym expansion.
• The project at 919 West Fulton Street has secured a $200 million construction loan, indicating strong developer confidence despite high office vacancies.
• This move aligns with Equinox's growth strategy and the neighborhood's demand for upscale amenities, supported by $1.8 billion in new funding for the company.

Equinox's Strategic Expansion into Fulton Market

Equinox, a fitness club brand predominantly owned by Related Companies' Stephen Ross, is reportedly in advanced discussions to secure a significant lease in Chicago's Fulton Market. The brand is eyeing approximately 40,000 square feet at 919 West Fulton Street, a new office development spearheaded by investor Shanna Khan and Fulton Street Companies. This move into one of Chicago's most dynamic neighborhoods marks a pivotal moment for Equinox, reflecting a broader trend of luxury fitness brands integrating into rapidly evolving urban landscapes. Fulton Market's transformation from a historic meatpacking district to a vibrant commercial and residential hub underscores the area's appeal to high-end retailers and service providers.

The Promise Amidst Office Development Risks

Despite the inherent risks associated with new office developments in the current climate—highlighted by record-high vacancies due to the shift towards remote work—the 919 West Fulton project is demonstrating potential for success. The development has already secured a $200 million construction loan for its $300 million project, signaling strong financial backing and confidence from lenders. Furthermore, the pre-leasing of approximately 150,000 square feet by Harrison Real Estate Capital, coupled with plans from Gibsons Restaurant Group to open a new eatery on the premises, showcases the project's appeal to reputable tenants. This context provides a promising backdrop for Equinox's potential entry into the market, suggesting a strategic bet on the neighborhood's continued growth and the demand for luxury amenities.

Fulton Market's Upscale Transformation

Fulton Market's ongoing upscale transformation is characterized by the construction of over 2,000 apartments and a burgeoning demand for high-end amenities, including premium fitness facilities. The proposed Equinox gym would join a growing list of upscale amenities and establishments in the area, such as the Soho House hotel and the West Loop Athletic Club, further cementing Fulton Market's status as a destination for luxury lifestyle offerings. This shift not only reflects changing consumer preferences but also highlights the neighborhood's rapid development as a mixed-use community catering to affluent professionals and residents.

A Reflection of Broader Market Trends

Equinox's potential expansion into Fulton Market aligns with the company's recent announcement of $1.8 billion in new funding, aimed at refinancing existing loans and fueling growth initiatives. This move is indicative of broader market trends, where luxury fitness brands are increasingly seeking to establish a presence in key urban markets worldwide. By choosing Fulton Market, Equinox is tapping into a vibrant, growing community that values premium lifestyle experiences, signaling confidence in the neighborhood's future and the company's ability to attract a discerning clientele.