LA Fitness NNN Investor Hub | Cap Rate Trends, Credit Rating Trends, Lease Terms & Due Diligence
Last Year Cap
6.5%
This Year Cap
7.4%
Cap Change
0.9%
Last Year Rating
B
This Year Rating
B
Rating Change
No change
LA Fitness – NNN Cap Rate Trend
Cap Rate Trends
| wdt_ID | wdt_created_by | wdt_created_at | wdt_last_edited_by | wdt_last_edited_at | Tenant | Year | Cap Rate |
|---|---|---|---|---|---|---|---|
| 5779 | admin2 | 2026 04:17 AM | admin2 | 2026 04:17 AM | 7 Brew | 2,020 | 6.5 |
| 5780 | admin2 | 2026 04:17 AM | admin2 | 2026 04:17 AM | 7 Brew | 2,021 | 6.3 |
| 5781 | admin2 | 2026 04:17 AM | admin2 | 2026 04:17 AM | 7 Brew | 2,022 | 6.0 |
| 5782 | admin2 | 2026 04:17 AM | admin2 | 2026 04:17 AM | 7 Brew | 2,023 | 6.3 |
| 5783 | admin2 | 2026 04:17 AM | admin2 | 2026 04:17 AM | 7 Brew | 2,024 | 6.6 |
| 5784 | admin2 | 2026 04:17 AM | admin2 | 2026 04:17 AM | 7 Brew | 2,025 | 6.6 |
| Tenant | Year | Cap Rate |
Credit (what net-lease buyers care about)
Credit Snapshot
LA Fitness
LA Fitness Net Lease: Secure, Essential Investment
LA Fitness – Credit Trend (S&P vs Moody’s)
Tenant_Rating_Trend
| wdt_ID | wdt_created_by | wdt_created_at | wdt_last_edited_by | wdt_last_edited_at | TenantKey | Tenant | Year | Moody | SP | Moody_Grade | SP_Grade | Moody_GradeRank | SP_GradeRank |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | admin2 | 2025 03:43 PM | admin2 | 2025 03:43 PM | 7eleveninc | 7-Eleven, Inc. | 2022 | Baa2 | A | Lower Medium Grade | Upper Medium Grade | 5 | 6 |
| 2 | admin2 | 2025 03:43 PM | admin2 | 2025 03:43 PM | 7eleveninc | 7-Eleven, Inc. | 2023 | Baa2 | A | Lower Medium Grade | Upper Medium Grade | 5 | 6 |
| 3 | admin2 | 2025 03:43 PM | admin2 | 2025 03:43 PM | 7eleveninc | 7-Eleven, Inc. | 2024 | Baa2 | A | Lower Medium Grade | Upper Medium Grade | 5 | 6 |
| 4 | admin2 | 2025 03:43 PM | admin2 | 2025 03:43 PM | 7eleveninc | 7-Eleven, Inc. | 2025 | Baa2 | A | Lower Medium Grade | Upper Medium Grade | 5 | 6 |
| 5 | admin2 | 2025 03:43 PM | admin2 | 2025 03:43 PM | 99centsonlystoresllc | 99 Cents Only Stores, LLC | 2022 | Caa2 | CCC+ | Substantial Risk | Substantial Risk | 2 | 2 |
LA Fitness Investment Market Statistics
AVERAGE SALE PRICE
BUILDING SIZE
AVERAGE NOI
LAND
$/SF RANGE
LEASE TERM SHOWN
LA Fitness Investor Snapshot (Quick Facts)
Origins & Growth (Past)
Why investors buy LA Fitness NNN Properties or LA Fitness ground Lease Properties?
Pros (what buyers like)
- Established fitness brand
Nationally recognized operator with a long operating history - Recurring membership revenue
Monthly memberships support consistent cash flow - Prime retail locations
Typically located in major shopping centers and retail corridors - Attractive lease structures
Long-term NNN or ground leases appeal to 1031 exchange buyers
Cons (what can bite you)
- Lease structure variability
Some assets are NN or modified NNN with landlord responsibilities - Large-format buildings
Specialized layouts can increase re-tenanting costs - Limited rent growth
Some leases include minimal or no rent escalations - Competitive fitness market
Membership performance may be affected by local competition and changing consumer preferences
Investor Decision Framework (Buy / Hold / Sell)
✓ Strong “Buy Box” for an LA Fitness Net Lease
• 10–15+ years term remaining (or shorter term with strong renewal options) • Absolute NNN or clean NNN lease structure • High-traffic retail location with strong demographics • Established, high-performing club with stable membership base • Market-supported rent with scheduled rent escalations
02
⚠ Yellow Flags (Price Accordingly)
• NN or modified NNN lease with landlord responsible for roof and structure • Flat rent with limited or no rent escalations • Large-format fitness facility with higher re-tenanting costs • Secondary location with weaker demographics or visibility • Declining membership performance or increased local competition
Find out more
LA Fitness Background & History
LA Fitness is one of the largest fitness club operators in the United States, offering a wide range of health and wellness services through its nationwide network of full-service fitness centers. Founded in 1984, the company has expanded through new club development and strategic acquisitions, establishing a strong presence in major metropolitan and suburban markets.
Today, LA Fitness clubs provide cardiovascular and strength training equipment, group fitness classes, personal training, swimming pools, basketball courts, and other wellness amenities. The company continues to invest in modern facilities, digital tools, and member services to meet evolving consumer preferences and promote long-term membership retention.
As health and wellness remain a priority for many consumers, LA Fitness benefits from recurring membership revenue and a broad geographic footprint, making it one of the most recognized fitness brands in the U.S.
Why LA Fitness Matters to NNN Investors
LA Fitness operates within the growing health and fitness sector, where recurring memberships and essential wellness services help support long-term occupancy. The company’s business model is built around large-format fitness clubs that attract consistent member traffic throughout the year.
Many LA Fitness locations occupy highly visible retail corridors, regional shopping centers, and densely populated suburban markets with ample parking and strong accessibility. These real estate characteristics, combined with long-term leases, make many LA Fitness properties attractive to net lease and 1031 exchange investors.
As demand for fitness, wellness, and preventive health continues to grow, LA Fitness remains an established tenant in the net lease market. The company continues to enhance member experiences through facility upgrades, technology integration, and operational improvements.
our team of experts are here for you
Our team helps investors evaluate NNN properties with practical, market-based guidance. In addition, we support buyers and sellers with lease review, pricing analysis, and due diligence strategy.
Whether you are comparing LA Fitness ground lease properties or fee simple LA Fitness assets, we can help you review the details that affect risk and long-term value. As a result, clients can make more confident decisions based on lease structure, location quality, and investment goals.