Large corporate-guaranteed gym leases with long terms, and how to underwrite the big box, from a NNN buyer’s broker with 225+ transactions.
An LA Fitness NNN property is a large freestanding gym, often about 37,000 to 45,000 square feet on several acres, leased to Fitness International, LLC, the company behind LA Fitness, Club Studio and City Sports Club. Leases are typically corporate, and new leases commonly run 15 to 18 years with 10% rent increases every five years. Fitness International is a private company based in Irvine, California, rated B by S&P, below investment grade.
The company runs nearly 700 clubs in the U.S. and Canada. It bought 35 XSport Fitness clubs in 2024 and retired its Esporta Fitness brand in 2024 and 2025, rebranding most of those clubs to LA Fitness and closing or selling others. With a large building and a big price tag, the rent and the real estate matter a lot on a 1031 exchange. Solid Investments FL has represented a buyer on an LA Fitness in Carol Stream (Chicago), Illinois, on a corporate NN lease. Our buyer representation is always free to you.
| Tenant | Fitness International, LLC (corporate); confirm the tenant and guarantor on each lease |
|---|---|
| Ownership | Private company, based in Irvine, California |
| Credit rating | S&P B, below investment grade (raised from B- in January 2024) |
| Clubs | Nearly 700 in the U.S. and Canada |
| Brands | LA Fitness, Club Studio and City Sports Club; Esporta was retired in 2024–2025 |
| Building size | Often about 37,000–45,000 SF on about 3.75 acres |
| Typical lease term | 15–18 years on new leases |
| Lease type | NNN or NN; check landlord duties for roof and structure |
| Rent increases | Commonly 10% every 5 years (some leases cap increases at the lesser of CPI or 10%) |
| Typical cap rate (2026) | About 6.5%–7.25%, depending on the location, the rent and the remaining term |
| Typical price range | About $10M–$20M |
Club counts and credit from S&P coverage and company information as of 2026. Cap rates and pricing reflect current market conditions and vary by deal.
Most LA Fitness leases are signed or guaranteed by Fitness International, LLC, rated B by S&P. Read exactly which entity is the tenant and which is the guarantor.
On a 40,000-SF building, small differences in rent add up. Compare the rent per square foot to what similar big boxes lease for nearby. Rent at or below market makes the building easier to re-lease.
A large gym can be costly to re-lease. Check the zoning, parking, ceiling heights and nearby retail, and ask what other users could take the space if the club ever closed.
Some LA Fitness leases are NN, with the landlord responsible for the roof, structure or parking lot. Price in those costs and check the age and condition of each item.
New leases often include 10% increases every five years, but some cap them at the lesser of CPI or 10%. Read the exact wording and check the next increase date.
Ask whether the club was a former Esporta or XSport location. The company also faces a 2024 Department of Justice disability-access lawsuit and a 2025 FTC lawsuit over membership cancellations, which it disputes.
We’ve represented a buyer on an LA Fitness in Carol Stream (Chicago), Illinois, on a corporate NN lease:
Fitness
Solid Investments FL is a NNN buyer's brokerage based in Lakewood Ranch (Sarasota), FL, with 225+ NNN transactions, including an LA Fitness in Carol Stream (Chicago), Illinois. We help investors and 1031 exchange buyers find, underwrite and close LA Fitness and other NNN properties nationwide, and our buyer representation is free.
As of 2026, LA Fitness NNN properties generally trade around 6.5% to 7.25% cap rates. New long-term leases in strong locations trade at the lower end, while shorter terms and NN leases trade higher.
LA Fitness is operated by Fitness International, LLC, a private company based in Irvine, California. It also runs Club Studio and City Sports Club. It retired its Esporta Fitness brand in 2024 and 2025.
S&P rates Fitness International, LLC B, below investment grade. S&P raised the rating from B- in January 2024.
Many are NNN, but some are NN, with the landlord responsible for items like the roof, structure or parking lot. New leases commonly run 15 to 18 years with 10% rent increases every five years. Always read the landlord duties in the lease.
Fitness International runs nearly 700 clubs in the U.S. and Canada. It added 35 XSport Fitness clubs in 2024.
Confirm who signs and guarantees the lease, compare the rent per square foot to the local market, check any landlord duties for the roof and structure, and think about who else could use the large building if the club ever closed.
General information only, not investment, tax or legal advice. Credit ratings and market data change; verify current figures before investing.
We’ll help you vet the lease, the rent and the big-box real estate. Tell us your budget and timeline; our buyer representation is completely free.
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