Strong growth potential of athleisure brands is expected to drive up demand for prime retail tenancies, according to a report by CBRE.

CBRE’s Fitness Becomes Fashion report shows that demand for athleisure clothing in Australia has been booming thanks to the rise of remote work, active lifestyles, social media and a generational shift.

As a result, many brands have been looking to expand their online success into physical retail stores.

Last year, Australia’s fitness and athletic clothing stores market was valued at $4.2 billion, the report highlights. 

Increasing demand for activewear as streetwear has driven strong industry revenue growth, with the market reporting a CAGR of 3 per cent between 2019 and 2024. The rate is expected to be approximately 3.4 per cent between 2025 and 2030.

“Consumers are opting for more versatile and functional clothing which supports their exercise activities and daily routines without compromising style,” said CBRE senior research analyst Charlotte Fordyce, the report’s author.

“Gen Z and Millennials have been keen drivers of activewear market growth. This age group tends to be heavily influenced by fashion trends and has a high use of social media, such as Instagram and TikTok, which feature celebrities and influencers aligned with activewear brands. 

“Additionally, this age group are more health-conscious, prioritising fitness and wellness, so that is also influencing consumer behaviour,” Fordyce elaborated.

CBRE’s head of retail property management and leasing – Pacific, Sheree Griff, noted that the increasing popularity of athleisure will result in a growing number of physical stores.

Athleisure brands are increasingly seeking locations alongside other luxury boutiques, reflecting another growing trend: The emergence of athleisure precincts.

“Retail athleisure precincts, such as Armadale in Melbourne, featuring brands including Lululemon, Nimble, Style Runner and 2XU, are particularly attractive to tenants as they benefit from increased foot traffic of their target demographic.

“In addition, we are increasingly seeing prominent brands with an existing physical presence occupy larger floor spaces. We expect athleisure brands to continue to expand their floorspace to refresh fit-outs and incorporate more experiential retail,” Griff added.