New England Real Estate Journal

Wellness Activation: The OPEX Strategy Reshaping Multifamily in 2026 - by Jennifer DiCecco

December 5, 2025 - Owners Developers & Managers
Jennifer DiCecco

Most owners and operators overlook this — because many decision-makers don’t truly understand how a gym actually drives value inside a multifamily asset.

Most didn’t grow up in a wellness-driven generation. Many don’t have a consistent exercise routine. And because they don’t personally use the amenity, they often don’t grasp the connection between fitness, mental health, consistency, community, and long-term resident retention.

To them, the gym is simply a nice-to-have amenity box to check — something added because the market says it should be there… not something they see as a strategic lever for NOI, renewal lift, or asset performance.

But here’s what today’s residents know — and what owners often miss:

Residents across all generations understand the relationship between exercise, longevity, mental clarity, and community. They view wellness as essential, not optional.

And that’s why most owners don’t realize this: Your gym is one of your most expensive assets — and one of your least understood.
Between construction, equipment, flooring, technology, and ongoing maintenance, owners invest hundreds of thousands into the fitness center.

And yet:

  • Most gyms produce zero NOI
  • Most don’t drive renewals
  • Most sit underused or completely empty

Meaning your highest-cost amenity often functions as:

  • A dead amenity
  • A depreciating asset
  • A non-performing space
  • An expense with no return
  • A missed opportunity for retention, reputation, and renewal value

Here’s the shift: An unused gym is an expense, but an activated gym is an income-producing asset.

When you activate your wellness space with trainers, programming, and real human engagement:

  • Residents show up
  • Renewal intent climbs
  • Lease-up accelerates
  • Turnover drops
  • Equipment lasts longer
  • Rent premiums become justified
  • NOI improves without adding CapEx

The best part? It qualifies as a fully deductible OPEX expense (immediate tax advantage) This is the part most owners really miss:
Wellness activation isn’t CapEx.

It’s OPEX — fully deductible the same year. Think of services like: Janitorial, security, landscaping… and now, wellness activation.
In a January tax environment, that matters more than ever. The owners already built the gym. Elite Wellness Amenity Group turns it into NOI, retention, and long-term value.

Jennifer DiCecco is a senior vice president of strategic partnerships at Elite Wellness Amenity Group.