Facility economics are the quiet story of 2026
June 18, 2026 · 6 min read
Utilization, not square footage, is what separates a durable complex from a subsidized one. A look at the unit economics behind the build cycle.
The build cycle in multi-sport complexes has outpaced the growth in participation for three consecutive years. That gap is not automatically a problem, but it does change the question a capital partner should be asking.
The relevant metric is utilization across the full week, not peak weekend capacity. Facilities that program weekday mornings — schools, senior leagues, corporate leagues — carry materially different margins than those depending on tournament weekends alone.
Municipal partnership structures are the second variable. Where a public entity carries land or capital cost, the operator's return profile can look attractive on a levered basis while remaining fragile to any renegotiation.
Our view: underwrite the programming team as carefully as the asset. The operators compounding value today are the ones treating the complex as a media and membership business that happens to own real estate.