The term EXERCISE ROOM can be broken down into two parts: GYM, which is a three letter word, and ROOM. A GYM is a place where people go to exercise, typically with equipment such as weights, treadmills, and ellipticals. A ROOM is a space within a building that is enclosed by walls and a ceiling. Therefore, an exercise ROOM is a space within a building that is equipped with exercise equipment and is used for physical activity.