How to Design a Small Commercial Gym (Under 200m²): Equipment Selection and Layout Guide for Australia (2026)
Building a small commercial gym in Australia (100-200m²)? Space is your biggest challenge.
Cram too much equipment and your gym feels claustrophobic. Too little and members complain about wait times and limited options.
This guide shows you how to design a small but profitable gym: space-efficient equipment choices, smart layouts, member capacity planning, and real Australian costs for 100m², 150m², and 200m² facilities.
By the end, you'll have a complete blueprint for your small commercial gym.
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Small Gym Advantages
✅ Lower Startup Costs
100-150m² gym: $60k-$120k total equipment cost Compare to 400m² gym: $200k-$400k
Lower rent: $2,000-$5,000/month (vs. $8,000-$15,000 for large gyms)
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✅ Easier to Manage
- Fewer staff required (1-2 staff vs. 4-6)
- Simpler cleaning and maintenance
- Lower utility costs
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✅ Boutique Positioning
Small gyms can position as "boutique" or "personalized":
- Higher price point ($80-$120/month vs. $50-$70 for budget gyms)
- More community feel
- Better member retention
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Member Capacity Planning
Industry standard: 1 gym member uses 2-3m² during peak hours.
100m² Gym
Usable floor space: ~75m² (after reception, bathrooms, storage)
Peak hour capacity: 25-35 members
Total membership capacity: 150-250 members (assuming 15-20% peak hour usage)
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150m² Gym
Usable floor space: ~115m²
Peak hour capacity: 35-50 members
Total membership capacity: 250-400 members
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200m² Gym
Usable floor space: ~155m²
Peak hour capacity: 50-70 members
Total membership capacity: 350-500 members
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Equipment Priorities (What to Buy First)
Tier 1: Essential (Can't Open Without)
1. Cardio machines (6-10 units) 2. Power racks or rig (1-2 units) 3. Olympic barbells (4-6) 4. Bumper plates (400-600kg total) 5. dumbbells (5-30kg, full set) 6. Adjustable benches (3-4) 7. Flooring (rubber + turf)
Cost: $40k-$60k
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Tier 2: Important (Add Within 3-6 Months)
1. Pin-loaded machines (4-6 units) 2. Cable station (1 dual-function) 3. Functional equipment (kettlebells, plyo boxes, sleds) 4. Additional cardio (2-4 machines)
Cost: +$25k-$40k
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Tier 3: Nice-to-Have (Add When Cash Flow Allows)
1. Specialty machines (leg press, hack squat) 2. More pin-loaded machines 3. Premium cardio (touchscreen models) 4. Recovery zone (massage guns, foam rollers)
Cost: +$15k-$30k
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Layout Templates
100m² Gym Layout
Zone breakdown:
- Cardio: 25m² (6-8 machines)
- Strength/free weights: 35m² (racks, benches, dumbbells)
- Functional: 15m² (turf, rig)
- Reception/lounge: 10m²
- Bathrooms/storage: 15m²
Equipment list:
- 6 treadmills (or 4 treadmills + 2 bikes)
- 1 power rack
- 4 Olympic barbells
- 400kg bumper plates
- Dumbbell set (5-30kg)
- 3 adjustable benches
- 2 pin-loaded machines (lat pulldown, cable station)
- Small functional zone (2 kettlebells sets, 4 plyo boxes, battle rope)
Total cost: $55k-$75k
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150m² Gym Layout
Zone breakdown:
- Cardio: 35m² (8-10 machines)
- Strength: 45m² (racks, benches, dumbbells, 2-3 machines)
- Functional: 25m² (turf, rig)
- Reception: 15m²
- Bathrooms/storage/office: 30m²
Equipment list:
- 8 cardio machines (5 treadmills, 2 bikes, 1 rower)
- 2 power racks or 2-bay rig
- 6 Olympic barbells
- 600kg bumper plates
- Dumbbell set (5-40kg)
- 4 adjustable benches
- 4 pin-loaded machines (lat pulldown, cable station, leg press, chest press)
- Functional zone (3 kettlebell sets, 6 plyo boxes, sleds, battle ropes)
Total cost: $75k-$110k
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200m² Gym Layout
Zone breakdown:
- Cardio: 50m² (12-15 machines)
- Strength: 60m² (racks, benches, dumbbells, 4-5 machines)
- Functional: 35m² (turf, rig)
- Group fitness studio: 25m² (optional)
- Reception/lounge: 15m²
- Bathrooms/storage/office: 15m²
Equipment list:
- 12 cardio machines (7 treadmills, 3 bikes, 2 rowers)
- 2-3 power racks or 3-bay rig
- 8 Olympic barbells
- 800kg bumper plates
- Dumbbell set (2.5-50kg)
- 6 adjustable benches
- 6 pin-loaded machines (full body coverage)
- Functional zone (full setup: kettlebells, plyo boxes, sleds, ropes, assault bikes)
Total cost: $100k-$150k
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Space-Efficient Equipment Choices
✅ Choose: Multi-Function Machines
Cable station with dual adjustable pulleys: Replaces 4-5 single-function machines:
- Lat pulldown
- Cable crossover
- Tricep pushdown
- Cable rows
- Ab crunches
Space saved: 6-8m²
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✅ Choose: Adjustable Benches (Not Fixed)
Adjustable bench = 5 functions:
- Flat bench press
- Incline press
- Decline press
- Seated shoulder press
- Step-ups
Fixed flat bench = 1 function.
Space saved: 4-6m²
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✅ Choose: Compact Cardio (Rowers, Bikes)
Treadmill: 2m x 1m = 2m² Rower: 2.4m x 0.6m = 1.4m² (and stores upright) Bike: 1.3m x 0.6m = 0.8m²
Mix in bikes and rowers to save 20-30% cardio floor space.
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✅ Choose: Wall-Mounted Rigs (Not Freestanding)
Freestanding rig: 3m x 1.5m (footprint + stabilizers) = 4.5m² Wall-mounted rig: 3m x 0 (no footprint) = 0m²
Space saved: 4-5m²
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❌ Avoid: Single-Function Machines
Don't buy:
- Pec fly machine (use cable station instead)
- Preacher curl bench (use adjustable bench + dumbbells)
- Calf raise machine (use Smith machine or power rack)
Why? Takes up 1.5-2m² each, used by <5% of members.
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❌ Avoid: Bulky Specialty Machines
Skip (unless you have space):
- Leg press (3m² footprint, can use squat rack instead)
- Hack squat machine (2.5m², same alternative)
- Smith machine (2m², power rack is more versatile)
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Traffic Flow Planning
Critical for small gyms: Poor traffic flow makes a 150m² gym feel like 100m².
Rule 1: 1.5m Clearance Between Equipment
Minimum walkway: 1.5m wide
Why?
- Members walking past equipment
- Members loading plates on barbells (arms extended)
- Safety (no collisions)
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Rule 2: Position Cardio Near Windows/Entrance
Why?
- Natural light improves experience
- Members see cardio first (most popular zone)
- Keeps cardio separate from weights (noise, traffic)
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Rule 3: Free Weights in Back/Corner
Why?
- Deadlifts, squats, Olympic lifts = loud
- Less foot traffic in lifting zone = safer
- Keeps heavy equipment away from entrance
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Rule 4: Functional Zone Away from Cardio
Why?
- Sleds, battle ropes, box jumps = dynamic movement
- Needs dedicated space (not shared walkways)
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Common Small Gym Mistakes
❌ Mistake 1: Buying Too Much Equipment Upfront
Trap: "I'll fill every square meter with equipment."
Reality:
- Cramped, claustrophobic gym
- Poor member experience
- Wasted money on unused equipment
Better: Start with 70-80% capacity. Add equipment based on member demand.
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❌ Mistake 2: Neglecting Non-Gym Spaces
Trap: "I'll use 95% of space for gym floor. Tiny reception/bathrooms."
Reality:
- No lounge area = members don't hang out = lower retention
- Small bathrooms = queues during peak hours
- No storage = equipment clutter on gym floor
Better: Allocate 20-25% to non-gym spaces (reception, bathrooms, storage, office).
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❌ Mistake 3: Ignoring Ceiling Height
Trap: "This 2.4m ceiling height is fine."
Reality:
- Can't do pull-ups (need 2.7m+ clearance)
- Can't do box jumps (tall members hit ceiling)
- Rig installation impossible
Better: Minimum 3m ceiling height for functional training. 2.7m minimum for traditional gyms.
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❌ Mistake 4: Poor Ventilation
Trap: "HVAC is expensive. I'll use fans."
Reality:
- Hot, stuffy gym in summer
- Odor buildup
- Members leave after 20 minutes
Better: Budget $5k-$15k for proper HVAC. Essential for member retention.
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Budget Breakdown (Small Gym)
150m² Gym Example
Equipment: $85,000
- Cardio: $35,000 (8 machines)
- Strength: $25,000 (racks, barbells, plates, benches)
- Pin-loaded machines: $15,000 (4 units)
- Functional: $7,000 (kettlebells, boxes, ropes, sleds)
- Accessories: $3,000 (mirrors, mats, storage)
Flooring: $10,000
- Rubber tiles (100m²): $6,000
- Turf (25m²): $3,000
- Installation: $1,000
Fit-out: $25,000
- Reception desk: $2,000
- Bathrooms: $8,000
- Lighting: $3,000
- HVAC: $10,000
- Signage: $2,000
Total startup: $120,000
Monthly costs:
- Rent: $3,500
- Utilities: $800
- Staff (2 part-time): $4,000
- Insurance: $500
- Marketing: $1,000
- Total: $9,800/month
Break-even: 140-160 members @ $70/month
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Revenue Strategies for Small Gyms
1. Premium Pricing
Position as boutique gym: $80-$120/month (vs. $50-$70 budget gyms).
Justify premium with:
- Personalized service (know all members by name)
- Less crowded (capped membership)
- Better equipment (commercial-grade)
- Community vibe
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2. Personal Training
Revenue potential: $80-$120 per session
For 150m² gym:
- 10-15 PT sessions/week = $800-$1,800/week = $3,200-$7,200/month extra revenue
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3. Group Classes
Revenue potential: $20-$35 per class per person
For 150m² gym with 25m² functional zone:
- 8-12 people per class
- 10 classes/week
- 10 classes x 10 people x $25 = $2,500/week = $10,000/month
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4. Corporate Packages
Partner with local businesses (offices within 1km):
- 10-20 employee memberships @ $60/month each
- Guaranteed recurring revenue
- Lower marketing cost (B2B sales)
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At Compound Fitness, we offer turnkey packages for small gyms:
100m² Starter Package: $55,000
- 6 cardio machines
- 1 power rack
- 4 barbells + 400kg plates
- Dumbbell set (5-30kg)
- 3 benches
- 2 pin-loaded machines
- Basic functional equipment
- Flooring included
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150m² Complete Package: $85,000
- 8 cardio machines
- 2 power racks
- 6 barbells + 600kg plates
- Dumbbell set (5-40kg)
- 4 benches
- 4 pin-loaded machines
- Full functional zone
- Flooring included
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200m² Premium Package: $130,000
- 12 cardio machines
- 3-bay rig
- 8 barbells + 800kg plates
- Dumbbell set (2.5-50kg)
- 6 benches
- 6 pin-loaded machines
- Premium functional zone
- Flooring + installation included
All packages include:
- 5-year commercial warranty
- Free layout design
- Installation support
- Australian service network
📞 Call: 0414 275 045
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The Bottom Line
Small gyms (100-200m²) can be highly profitable:
- Lower startup costs ($60k-$150k vs. $200k-$500k for large gyms)
- Premium positioning ($80-$120/month memberships)
- Better community and retention
- Easier to manage
Keys to success:
- Space-efficient equipment (multi-function machines, compact cardio)
- Smart layout (1.5m clearances, logical traffic flow)
- Quality over quantity (fewer machines, better equipment)
- Non-gym spaces matter (reception, bathrooms, lounge = 20-25% of space)
Don't overcrowd. Leave room to breathe. Small gyms feel premium when they're well-designed.
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Categories: Gym Setup, Small Gym Design, Commercial Gym Ownership
Tags: small gym design, commercial gym layout, gym equipment packages, 150m² gym, boutique gym, Australian gym owners
Internal Links:
- All Equipment: https://www.compoundfitness.com.au/collections/all
- Contact Us: https://www.compoundfitness.com.au/pages/contact
