Fitness and Leisure Real Estate 2026: The Overlooked Asset Class with Record Demand and Operator Risk

Many investors still regard fitness and leisure real estate as an exotic niche between retail and operational property. The latest industry data, however, suggest that the asset class enjoys a structural demand tailwind that distinguishes it from cyclical consumer formats. Those who understand the operator model and its attendant risk find a source of long-term, indexed cash flows.

Record Figures: The Fitness Economy as a Growth Market

The industry's most reliable data source is the annual key figures of the German fitness economy, compiled by the employers' association DSSV together with Deloitte and the DHfPG. For 2024 they show a new all-time high: membership rose 3.6 percent to 11.71 million, surpassing the pre-crisis level of 2019 for the first time (DSSV). Industry revenue grew 7.0 percent to 5.82 billion euros net.

The number of commercially operated facilities remained almost constant at 9,127 (plus 0.2 percent) – an important finding, because it shows that growth arises not through floor-space expansion but through higher utilisation and earnings per site (fitnessmanagement.de). In other words, existing sites are becoming more valuable. For property owners this is the more favourable variant of market growth, because it supports operators' ability to pay rent without creating new competing space.

The Market Structure: Chains Dominate, Single Sites Hold

The segmentation explains the risk profile. Chains form the strongest segment with 7.14 million members, followed by single facilities at 4.13 million and the special-interest segment at 0.44 million (BODYMEDIA). For the property side, the dominance of chains cuts both ways. Creditworthy, expanding operators such as Basic-Fit drive standardisation and rent-paying capacity; at the same time tenant risk concentrates on a few large names.

Basic-Fit, for example, generally operates its studios itself, finances the fit-out from its own resources and pursues a cluster strategy for strong local presence (Basic-Fit). Such operators are attractive as tenants because they sign long leases and invest in build-out – the classic logic of operational property, in which the durability of the asset's value hinges on the tenant's operating performance. Alongside them, developers such as the IMVEST group drive the conversion of commercial buildings into sport, lifestyle and health space, combining fitness with healthy working at sites such as Hamburg, Kiel, Osnabrück and Dortmund.

Why Fitness Works as Property – and Where the Risk Lies

The structural appeal of the asset class rests on three properties. First, fitness space is comparatively online-resistant: the service is consumed physically on site, which immunises it against the e-commerce pressure eroding classic retail. Second, tenants tie capital to the location through heavy investment in equipment and fit-out, which lengthens dwell time. Third, fitness works as a footfall-generating anchor in retail parks, mixed-use quarters and converted office or retail space – the growing conversion trend plays directly into the asset class's hands.

The risk is the mirror image. Fitness is an operating business with thin margins and high competitive intensity; if an operator runs into trouble, the specialised space can be re-let only with substantial capital outlay. Alternative-use potential is limited, and rent-paying capacity correlates with the consumer cycle. Investors price these characteristics through higher yields than for classic core retail and through careful scrutiny of operator creditworthiness. Growing professionalisation – documented by industry forums such as the Fitness Real Estate Summit – gradually lowers this risk but does not eliminate it (One Hospitality).

Reading It: A Niche with Substance, Not a Sure Thing

Germany's fitness economy has put its pandemic slump behind it and is growing structurally, carried by demography, health consciousness and the link between exercise and prevention. For property investors this creates an asset class with long-term, often indexed leases and a yield premium over core formats. The key lies in operator selection and location quality: sites with high footfall, good accessibility and integration into a mixed-use environment are more durable than isolated big boxes.

What this means for principals: fitness and leisure real estate deserve a place on the radar for alternative, operator-led cash flows – but only with a clear view of operator risk. The right strategy combines a creditworthy anchor operator, a high-footfall location and a valuation that honestly prices the limited alternative-use potential. Those who master this open up a market structurally superior to cyclical retail.