Gymshark Playing Its First Away Game in U.S. With New SoHo Office

Gymshark founder and CEO Ben Francis is making good on expansion promises made earlier this year and is setting up an office stateside, Commercial Observer has learned.

The U.K.-based fitness apparel brand is opening up a 9,400-square-foot SoHo office at Zar Property NY’s 38 Greene Street after signing a seven-year lease for the entire fourth floor, according to a source with knowledge of the deal. Asking rent was $98 per square foot.

David Zar and Julian Zar, who represented ownership in-house, declined to comment on the transaction. Matthew Seigel, Skye Taylor and Jessica Adler of Lantern Real Estate, who negotiated on behalf of Gymshark, did not immediately respond to a request for comment.

Gymshark has suffered from rising sales numbers, but faltering profits, in recent years but is expanding stateside nonetheless.

In fiscal year 2022, Gymshark’s revenue rose 21 percent, from $501.1 million in 2021 to $605.3 million, while its gross profit margin dropped by 65 percent, according to Forbes. 

It was pretty much the same story in 2023 in which revenue jumped another 15 percent from about $619.5 million to $709 million, which was a pretax profit of $16.5 million, a decline from $35.3 million the fiscal year prior, according to Athletech News.

Gymshark will join San Francisco-based cryptocurrency trading platform dYdX, which signed a 21,400-square-foot lease across the fifth, sixth and seventh floors in April in the five-story Greene Street building. Other tenants include a Fjällräven store on the ground floor, a software firm called OpenWeb, as well as And.co, now known as Fiverr Workspace.

Mark Hallum can be reached at mhallum@commercialobserver.com.