Bathhouse Site Selection Considerations

Don Genders, founder & CEO of Design for Leisure, gives a primer on what to consider when looking for a site for a new bathhouse.

Given the popularity of my recent blog post on the bathhouse investment opportunity, I wanted to share thoughts on site selection. Over the past 35 years, designing hydrothermal spaces, I’ve seen brilliant concepts struggle simply because the wrong building or plot was chosen.

A disused retail property, depending on location, can be a great site choice for a bathhouse

𝟣. 𝗚𝗿𝗲𝗲𝗻𝗳𝗶𝗲𝗹𝗱 𝗶𝘀𝗻’𝘁 𝗮𝗹𝘄𝗮𝘆𝘀 𝗴𝗿𝗲𝗲𝗻𝗲𝗿.

Cheaper brownfield land may look attractive until you start digging for pools and discover what’s hiding beneath. Contamination, unknown utilities, and unstable soil can turn a “deal” into a financial black hole.

On true greenfield sites, pay close attention to water tables (coastal and riverside plots can require expensive tanking) and existing trees or slopes—sloped terrain can actually reduce excavation costs if used wisely.

𝟤. 𝗙𝗼𝗿 𝗲𝘅𝗶𝘀𝘁𝗶𝗻𝗴 𝗯𝘂𝗶𝗹𝗱𝗶𝗻𝗴𝘀, 𝗻𝗲𝘄𝗲𝗿 𝗶𝘀𝗻’𝘁 𝗯𝗲𝘁𝘁𝗲𝗿.

Bathhouses need major MEP overhauls. Paying premium rents for a pristine new building, only to gut it, rarely makes sense. Older buildings, often in need of renovation anyway, tend to be more flexible, more affordable and better suited to heavy infrastructure upgrades.

𝟥. 𝗖𝗵𝗼𝗼𝘀𝗲 𝗿𝗲𝘀𝗶𝗱𝗲𝗻𝘁𝘀 𝗼𝘃𝗲𝗿 𝗿𝗲𝘁𝗮𝗶𝗹 𝗳𝗼𝗼𝘁𝗳𝗮𝗹𝗹.

Prime retail corridors look tempting, but they’re designed for shoppers, not repeat local members. Bathhouses thrive where people live, not where they window-shop.

…𝗕𝘂𝘁 𝘁𝗵𝗲𝗿𝗲’𝘀 𝗼𝗻𝗲 𝗶𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁 𝗲𝘅𝗰𝗲𝗽𝘁𝗶𝗼𝗻.

The steep decline in physical retail has created rare opportunities in formerly prime retail spaces—especially in smaller or secondary markets. When these empty retail shells sit within or adjacent to true residential neighborhoods (not tourist zones or traditional commercial strips), the economics can suddenly make sense.

In these cases, what used to be high-rent retail can become an affordable anchor for a bathhouse designed to serve and enhance its local community.

𝟦. 𝗘𝗺𝗲𝗿𝗴𝗶𝗻𝗴 𝗻𝗲𝗶𝗴𝗵𝗯𝗼𝗿𝗵𝗼𝗼𝗱𝘀 𝗮𝗿𝗲 𝗮 𝘀𝘄𝗲𝗲𝘁 𝘀𝗽𝗼𝘁.

Industrial or commercial buildings in areas undergoing gentrification, especially where offices are converting to residential, often hit the right balance of affordability, accessibility, and long-term growth.

𝟧. 𝗛𝗼𝗿𝗶𝘇𝗼𝗻𝘁𝗮𝗹 𝘃𝘀. 𝘃𝗲𝗿𝘁𝗶𝗰𝗮𝗹 𝗰𝗶𝘁𝗶𝗲𝘀 𝗯𝗲𝗵𝗮𝘃𝗲 𝗱𝗶𝗳𝗳𝗲𝗿𝗲𝗻𝘁𝗹𝘆.

In walkable, vertical metros, proximity to dense residential towers is everything.

In car-dependent cities, parking availability becomes a major factor; industrial zones can work well, especially if office workers vacate parking after 5 PM.

𝟨. 𝗢𝘂𝘁𝗱𝗼𝗼𝗿 𝗮𝗰𝗰𝗲𝘀𝘀 𝗶𝘀 𝗮 𝗺𝗮𝘀𝘀𝗶𝘃𝗲 𝗯𝗼𝗻𝘂𝘀.

In warm climates, it becomes a daytime draw. In cold climates, it becomes a thermal experience: hot-cold contrast environments drive repeat visits and give the bathhouse a signature edge.