2000 sq ft divided by 50 sq ft per person (exercise) would be less than 50 so I would classify it as "B"
An assembly space that's small or under 50 occupants
... can (shall?) be reclassified as a B.
303.1.1 Small buildings and tenant spaces. A building or
tenant space
used for assembly purposes with an occupant
load of less than 50 persons shall be classified as a Group
B occupancy.
This is why I shared that "cart before the horse" meme. The information isn't wrong, it's the approach. Start with the appropriate classification per Chapter 3, then work from there. It's all about risk. The intended purpose is Assembly (higher risk) but the low occupant load
allows the reclassification to a lower risk use.
SECTION 301
SCOPE
301.1 General. The provisions of this chapter shall control
the classification of all buildings and structures as to occupancy
and use. Different classifications of occupancy and use
represent varying levels of hazard and risk to building occupants
and adjacent properties.
SECTION 302
OCCUPANCY CLASSIFICATION
AND USE DESIGNATION
302.1 Occupancy classification. Occupancy classification is
the formal designation of the primary purpose of the building,
structure or portion thereof. Structures shall be classified into
one or more of the occupancy groups specified in this section
based on the nature of the hazards and risks to building occupants
generally associated with the intended purpose of the
building or structure. An area, room or space that is intended to
be occupied at different times for different purposes shall
comply with all applicable requirements associated with such
potential multipurpose. Structures containing multiple occupancy
groups shall comply with Section 508. Where a structure
is proposed for a purpose that is not specified in 'this section,
such structure shall be classified in the occupancy it most
nearly resembles based on the fire safety and relative hazard.
Occupied roofs shall be classified in the group that the occupancy
most nearly resembles, according to the fire safety and
relative hazard, and shall comply with Section 503.1.4.