Fitness assets are expected to continue to draw strong investor demand in the net lease space as consumers continue to prioritize wellness in the wake of the COVID-19 pandemic, according to a new analysis from B+E Net Lease.

"Fitness clubs typically trade at higher cap rates than the rest of the STNL market, a rate that is higher than most current lending rates," the firm notes in a new report analyzing the sector. "With transactions slowing due to these rising interest rates, B+E expects fitness assets to continue attracting investors as they are one of the main asset classes still transacting with positive leverage."

Fitness brands were among the hardest-hit by the global pandemic, as lockdowns shuttered operations and consumers flocked to in-home, tech-driven options. But as Covid restrictions lifted, experiential retail concepts provided lift to the overall sector as foot traffic to fitness centers – and those retailers located in the immediate vicinity – ticked up.