FEC Real Estate

📈 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?

🚨 The next great FEC site might be a dead Kmart.

Or a vacant fitness box.

Recent deals:

🏎️ K1 Speed → 62,000 SF former Kmart

🎯 Urban Air → 43,000 SF former fitness box

That's not a coincidence.

🏬 Landlords need new anchors.

👨‍👩‍👧‍👦 FECs bring traffic.

💰 Operators get big boxes without building from scratch.

The winners aren't just finding sites.

They're finding vacancies.

❓Are big-box conversions part of your growth strategy?

🎢 Most FEC operators don’t lose on concept.
They lose on location.

A strong trampoline park or entertainment concept in the wrong box, market, or co-tenancy mix will underperform every time.

📍 Site selection isn’t a checkbox.
It’s the highest-leverage decision before you sign a lease.

Here’s what separates performing sites from ones that drain your P&L:

📊 Demographics first. Simple.

🏬 Co-tenancy drives traffic. The best FEC sites sit near grocery anchors, casual dining, and family-oriented retail. Destination concepts still need habit formation.

🚗 Visibility and access matter more than most admit. If parents can’t see you or can’t easily turn in, you’re losing daily walk-ins.

🏗️ Parking, clear height, flooring, excavation, and facade access aren’t surprises. They’re underwriting variables for your LOI, not your build-out.

📜 Zoning and landlord flexibility separate good deals from expensive mistakes.

🏢 Top brands like Main Event, Urban Air, and Altitude Sports have turned this into repeatable site filters.

🚀 The fastest-growing operators are simply following that discipline.

💬 What site factor has surprised your team most in a lease negotiation?

🎢 U.S. FECs generated $8.2B in revenue and 450M visits in 2023.
That’s not entertainment trivia—it’s a real estate signal.

📈 Weekend-driven demand. Rising repeat visitation. Double-digit market growth.

🏗️ The difference between a winning FEC and a struggling one usually isn’t concept.
It’s site selection.

📍 Where you open determines everything: velocity to breakeven, lease leverage, and expansion path.

⚖️ Most operators are building strong concepts.
Fewer are placing them in the right corridors.

🚀 The market is expanding fast. The real question is:
are your next sites positioned to capture it—or just compete in it?

US amusement parks are projected to generate $34.3B in revenue by 2026 — fueled by a 10.3% CAGR over the last five years.