Gym · studio · spa · salon · tenant / leasehold study

Gym & fitness build-out cost segregation

Sport flooring, locker rooms, mirrors, dedicated power and specialty HVAC — a fitness build-out is full of use-specific systems that have nothing to do with the landlord's shell.

Start your study → Typically reclassifies 70–90% of build-out cost

Gym and fitness cost segregation analyzes the studio build-out you funded as the tenant. Gyms, studios, spas, and salons combine specialty flooring, locker rooms and wet areas, dedicated equipment power, mirrors, and specialty HVAC — most of it 5- and 15-year property. Rubber and sport flooring, locker-room plumbing, showers and steam, equipment circuits, mirror walls, and saunas or spa equipment carry accelerated lives. Interior partitions, ceilings, and HVAC distribution are 15-year QIP. As a tenant funding the build-out, 70–90% typically reclassifies.

Sport flooring, locker rooms, mirror walls, and the supplemental HVAC that keeps a packed studio breathable — a fitness build-out is full of use-specific systems with short lives, plus the reception and retail build-out up front.

The basis analyzed is your build-out cost — not a property purchase price (you don't own the building). Ranges below are illustrative engineering estimates as a share of that build-out cost.

Boutique gym rubber sport flooring and mirrored wall — short-life personal property in a cost segregation study

What reclassifies in a gym & fitness build-out

Component MACRS life Basis share
Rubber / sport / specialty flooring
Performance flooring tied to use, not the base slab
 5 / 15-year 8–16%
Locker rooms, showers & specialty plumbing
 5 / 15-year 6–12%
Mirror walls, barre & rig mounting
 5 / 7-year 2–5%
Dedicated electrical for equipment & charging
 5-year 4–9%
Supplemental / specialty HVAC for studio loads
Tenant-added cooling for high-occupancy heat load
 5 / 15-year 3–7%
Sound, AV & low-voltage systems
 5-year 2–6%
Sauna, steam & spa equipment
 5-year 1–5%
Reception & retail build-out
 5 / 7-year 2–6%
Interior partitions, ceilings & HVAC distribution
 15-year QIP 10–18%

This is the segment-specific view. For the full 5- / 7- / 15-year QIP framework and primary sources, see the tenant-improvement cost segregation overview →

Worked example

Scenario
Boutique gym / fitness studio build-out
Build-out basis
$1,200,000
Illustrative reclassification
80% = $960,000 into accelerated MACRS
Estimated year-1 deduction
$960,000 (100% §168(k) bonus on eligible property)
Estimated federal tax savings
$355,000 at 37% marginal
Study fee
$2,995

How the $1,200,000 build-out splits by MACRS class

Recovery class Reclassified amount % of build-out
5-year personal property$480,00040%
7-year property$72,0006%
15-year QIP & land improvements$408,00034%
39-year (remaining structural)$240,00020%

Illustrative and modeled — year-1 figures depend on build-out scope, §168(k) eligibility, §469 status, entity structure, and your CPA's tax position when the deduction lands. Not a filing figure. Every leasehold order is reviewed by our team before delivery.

Frequently asked

Is my flooring really not just part of the building?
Performance and sport flooring installed for your use — rubber, turf, sprung studio floors — is evaluated on its function and removability, not assumed into the 39-year shell. We classify it with stated rationale and documentation.
I'm opening multiple studios. Portfolio pricing?
Yes. Multi-location operators get portfolio pricing, and a repeatable build-out spec lets each location's study reuse the same component framework.
What's the basis you analyze — my equipment, my build-out, or both?
Your build-out cost, which includes the fixed equipment and specialty systems you installed. Freestanding equipment you bought is also depreciable personal property — share your fixed-asset register and we classify the full picture.

Keep going

Everything you need to scope a gym cost segregation engagement:

Other tenant build-out studies

You paid for the build-out. Get the depreciation you're owed.

Start your study and upload your build-out documents, or send your depreciation schedule and construction budget and we'll talk it through. Every leasehold order is reviewed by our team before delivery.