Navigating Commercial Real Estate for a Climbing Gym: A Practical Guide
- gheverly
- May 5
- 4 min read
Opening a climbing gym is a major undertaking—both logistically and financially. One of the most critical decisions you’ll make early on is choosing the right commercial real estate. From ceiling height to zoning laws to lease negotiations, the process is filled with unique complexities. This guide will walk you through what you need to know to successfully secure space for your gym—including how to evaluate properties, avoid common pitfalls, and determine whether to buy or lease.
Before You Begin: Know What Your Gym Needs
Before you tour properties or talk to brokers, get specific on the vision. Don't worry too much, this is all likely to change as you move down the road of building out your business plan and financial model, but having some directional ideas is a must:
Gym Type: Bouldering, top-rope, lead climbing, or a hybrid facility?
Square Footage:
Bouldering-only: typically 10,000–15,000+ sq ft
Full-service gym: typically 20,000–30,000+ sq ft
Amenities that will drive additional space requirements: Yoga/fitness rooms, locker rooms, café, retail, etc.
Target Market: College students, families, professionals? Experienced climbers? Generally have a good sense for who you expect your customers to be.
Key Physical & Structural Considerations
Climbing gyms have pretty unique space requirements as compared to many other service or retail businesses.
Ceiling Height: Make sure you look at clear height not "ceiling height". Clear height means ground to the bottom of any trusses, HAVAC, ductwork, sprinkler systems, etc which may be present.
Bouldering: 16–20 ft is typical
Rope Climbing: 40–50 ft is typical
Column-Free Space: Columns can severely limit wall design. So make sure to note column spacing. Columns can also be structural elements of the building which the walls can be attached to so they also have their benefits.
Structural Load-Bearing Elements: Climbing walls need to be signed off on by structural engineers, this will include how the walls are "attached" to the building. This could mean to the floor, walls, columns, trusses, ceiling, etc. If possible get a set of engineering drawings for the space.
Ventilation & HVAC: Crucial for comfort and chalk dust control.
Flooring Condition: Must accommodate padding and foot traffic.
Ingress/Egress: Meets safety codes and fire regulations.
Location is everything, but make sure you get a building that actually works. I've seen many projects become a nightmare because there was a lack of due diligence on the space before lease signing
Zoning, Permits & Parking
Always check local codes and consult with a commercial real estate attorney or city planner before signing anything.
Zoning: Make sure the property is zoned for the appropriate use. Common zoning uses are “indoor recreation,” “fitness,” or “assembly.” You can get into a bit of a mess if you have to apply for a zoning change or variance. Not a deal breaker but definitely changes the equation a bit.
Permits: Conditional Use Permits (CUPs) or special hearings may be required.
Parking Requirements: Municipalities often require a set number of spots based on building size and use. Separately, you should be considering what parking you want or need based on the commuter element of your business plan. Will most people be driving? If so, you can significantly reduce the entry barrier by having ample parking.
Make sure you work with an experienced locally certified architect
What to Look for in a Commercial Real Estate Broker
Experience with Specialty Gyms or Recreation: Brokers who understand climbing gyms or similar businesses will be more helpful than generalists.
Local Market Knowledge: They should know city regulations, rental rates, and neighborhoods.
Negotiation Skills: A good broker can save you tens of thousands in TI allowances or lease concessions. Make sure they have a demonstrated track record of getting deals done in favor of their client.
Strong Network: Connections with landlords, architects, contractors, and lenders are all a plus.
Transparency: They should clearly explain their compensation and avoid dual agency conflicts unless fully disclosed.
Always interview more than 1 broker. Identify who they have worked with before and check references when possible.
Buying vs. Leasing: Pros & Cons
LEASING
Pros:
Lower upfront costs, which translates to lower startup costs
Easier to relocate if needed
Landlord may offer tenant improvement (TI) allowance
Often quicker to get started
Cons:
No equity or long-term investment
Subject to rent increases and lease restrictions
Limited control over property changes
Lease may not be renewed
BUYING
Pros:
Build equity over time
Total control over buildout and expansion
Fixed mortgage provides cost stability
Possible tax advantages (depreciation, interest deduction)
Cons:
High upfront capital requirement means increased start up costs
Responsible for all repairs, maintenance, and property taxes
May limit initial cash flow or borrowing flexibility
It is worth noting that one of the #1 reasons climbing gyms fail is because of bad leases. This doesn't mean you have to buy, it just is something to be aware of. So if you can't buy make sure you have a very good lease and leverage talented legal counsel during the leasing process
Common Mistakes When Looking for Real Estate for a Climbing Gym
Underestimating Costs: Costs can vary wildly but make sure you thinking through costs for real estate broker fees, legal counsel, architects and engineers, potential inspection items like soil and structural, and build in at least a 10% buffer
Skipping Structural Inspections: Always have an engineer evaluate the building.
Choosing the Wrong Location: Poor access, weak demographics, or market positioning mistaks can doom a gym.
Ignoring Lease Terms: Don’t assume the landlord will be flexible later. Secure favorable terms upfront.
Overcommitting Financially: Ensure your debt service won’t cripple cash flow—especially in the first 1–2 years.
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