FEC Real Estate

🚨 A $70M family entertainment complex proposed in Henderson, NV is more than a project.

📍 It's a signal.

🏗️ Capital is moving where population growth is strongest.

📈 Sunbelt suburbs are becoming prime targets for FEC expansion thanks to:
• Rapid household growth
• Lower occupancy costs
• Available development sites
• Growing demand for entertainment

🎯 The question isn't whether the Sunbelt is viable.

It's whether the best sites are already gone.

Which Sunbelt market is on your radar?

📈 20,000–40,000 sq ft FECs break even in just 2.8 years.

Why does that matter?

This size range delivers the highest ROI in the industry and accounts for 39.2% of the FEC market.

But success isn't about square footage alone.

🔍 Clear height, parking, utilities, floor conditions, restroom placement, and build-out feasibility often determine whether a site performs—or drains your pro forma.

🎯 The best operators don't get lucky. They get disciplined about site selection before signing an LOI.

❓What's the most underestimated site factor in your market?🏢

Families aren't going back to malls. They want memories.

The FEC industry is not just recovered, it is outperforming pre-COVID on every major metric.

- U.S. FEC revenue projected at $3.7 billion in 2026, indoor centers growing at 9-10% annually through 2030
- FEC attendance up 15-20% from 2022 to 2024, with guests spending more per visit than ever before
- Consumers spent 15% more on experiences in 2024 versus 2019, while traditional retail barely moved

The shift is real and it is accelerating.

Is your expansion strategy aligned with where this growth is headed?

The FEC industry hit $6.1 billion in revenue, and the next phase of growth is already underway.

- AR and VR gaming is expanding who walks through the door and how long they stay
- Hybrid food-and-entertainment formats are outpacing single-concept venues
- Families are choosing paid experiences over passive retail at a consistent and growing rate

Research and Markets projects the broader market reaching $76.68 billion by 2030. The operators positioned to capture that growth are making smarter real estate decisions today.

What concept format do you think drives the strongest revenue per square foot right now?

The best FEC sites are hiding in anchor vacancies.

Landlords need fast backfill for large spaces, and experiential concepts are at the top of their list right now, according to Schuckman Realty and J.P. Morgan research from early 2026.

- Anchor vacancies offer 20,000 to 40,000 sq ft at favorable terms
- Co-tenancy with grocery, fitness, and food drives the family traffic FECs need
- Limited new supply means landlords are motivated to deal

The operators who know where to look are winning the best sites before they ever hit the market. Are you tracking anchor vacancies in your target markets?