VALUATION OF…
Gyms
Health and fitness facilities, valued on trading income where operational, or as specialised improvements where owner-occupied.
Content status: Methodology and evidence log — Sources, Caselaw and Market Information are added incrementally.
Methodology
Gyms are typically valued on an income basis where let to a fitness operator on a commercial lease, using the Income Capitalisation Method applied to a market rental; where the property is owner-occupied and trades as a going concern, the Profits Method may be applied instead.
Under the Big Five framework, the Income Generating Unit is generally the whole premises let as a single unit, though ancillary income (studio hire, retail/supplement sales) should be identified separately. Contract rental is compared to market rental for comparable fitness or leisure premises in the same node, and the capitalisation rate reflects tenant covenant and fit-out specialisation, since gym fit-outs have limited alternative-use appeal.
A Direct Comparison cross-check on a rate per square metre against sales of comparable leisure or fitness premises should be used to test the primary valuation.
Caselaw
Case law, regulatory rulings and expert-determination disputes relevant to valuing this asset class. Each entry cites its source and summarises the practice implication for valuers — this is not investment, financial, or legal advice.
The Evidence Log is for VDH Members
The Evidence Log for Gyms — sourced sales, disposals and rentals with Valuer’s Lens commentary — is included in VDH Membership: from R125/month for SACPVP candidates and students, R399/month standard. All prices include VAT.
The methodology and case law on this page remain free to read.