FACILITIES - SUPPLIES - PEOPLE

Heckelman on Tennis and Real Estate Value

Author

Rod Heckelman
July 26, 2026

Tennis Faces Its Greatest Opponent: Real Estate Value

By Rod Heckelman


Tennis facilities, often developed by competitive tennis players, have always embraced a competitive market environment. Competition is the driving force behind most businesses, and tennis facilities are no exception. And just like playing the game itself, taking on new challenges is welcome. But this new opponent may be too much to handle. It’s not just too strong or too experienced; it’s an opponent with an agenda that’s focused on growth and expansion for tremendous economic gains. What makes it even more difficult is that it is not a head-to-head competition, but a competitor that is in another lane, a lane outside of our tennis world, focusing completely on supply and demand. These opponents are real estate developers.

Over the last 20 years or so, approximately 22% of tennis facilities have been bought or closed, not by competition within the market, but by investors looking to profit from the escalating growth and demand for housing and commercial property. They target property that is underproducing income for their current occupants, which makes tennis facilities a prime target.

And there is an additional issue: many of those current occupants are struggling with diminishing demand and the inability to continue to increase their profits by increasing fees.  

The turf a single tennis court occupies is approximately 7,500 square feet, more or less. The revenue a single court returns can vary as a result of the cost of living at various locations, but the revenue a developer can get through housing, or some commercial operations, can be nearly fivefold, especially in areas of rapid growth.

These real estate occupants will also produce more revenue for the city, state, and the utility providers. As said, tennis people love competition, but this is not a fair fight.

Juan Garcia: Southern California is home to one of the most competitive racquet sports markets in the world.
How do clubs continue to grow when land is scarce, construction costs are high, and every square foot has to justify itself?

I’m honored to be moderating one of the featured conversations at the RacquetX City Series on August 18 at Fairbanks Ranch Country Club in Rancho Santa Fe.

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The actual number of clubs and facilities that have closed is not easy to accurately count, as some of them morphed into multipurpose facilities adding alternative sports and activities. But as an example, in the Northern California area there were over 17 indoor facilities in the early 80s; now there are fewer than ten. The story is different for membership-owned clubs; they have been able to hold on in recent years, but some of those closed long ago when larger, multi-purpose facilities became their competition. Now those same multi-purpose facilities are succumbing to the demand for their real estate, and often they are located smack dab in the middle of communities where they occupy prime real estate.

One more piece of the equation should also be considered. With city real estate and suburban dwellings expanding due to demand for housing, the cost of starting up a new tennis facility has become much more expensive. Not just the land and the cost of building, but also the property tax, the utility cost, and the operating cost. Add to that the gradual loss of members and, in many cases, the inability to raise their fees, and it's not a pleasant situation for any tennis facility.

In the past, the multi-purpose facilities had the best shot at success by offering a variety of sports and exercise venues. But new free sports, like Pickleball, or new trends, like home exercise programs, have made diversity less valued.

The overall impact on the tennis industry will be fewer facilities, which will certainly impact the tennis instructors, especially those just getting started. It will also mean less equipment sold…rackets, shoes, clothing, tennis nets, ball machines…the list goes on. Lastly, just like a restaurant or popular social hangouts, fewer facilities will mean fewer people to find to interact with, and fewer locations to participate in leagues, tournaments, or just social tennis events.

Okay, there is the doom and gloom; what about the new possibilities? We can start by recognizing the success of new facilities that provide multiple racket venues. This provides both a variety of options for the new members and also cross-pollinates the social venues. There is also, within the current structure of the tennis world, a great example of tennis clubs working in unity; it is called Adult Leagues. There is also new software and technology that is helping players find others to share their racket sport of choice and find new social interaction.

Scott McCulloch: Over the past few weeks, I've been reflecting on a recent trip through England and Austria.
Standing at Wimbledon, the most iconic venue in our sport, was one of those moments that genuinely moved me. Watching the best players in the world compete on Centre Court, walking the grounds, and spending time with great people and soaking it all in reminded me why I feel so fortunate to be part of this industry.

A few days later, I found myself at Bio- und Wellnessresort Stanglwirt in Austria that is one of the most breathtaking properties I have ever visited. In a completely different way, it had the same impact. The people, the culture, the hospitality, and the setting have a way of slowing you down and giving you perspective. It's one of those rare places that reminds you to be present and appreciate the moment you're in.

The lesson learned from these three new options is that the entire racket industry has to stop competing and start operating as a united industry. That means more than just facilities that offer all these venues; it means uniting all facilities through these sports to share events and social venues.

And not just tennis, Pickleball, or Padel, but also Squash, Racket Ball, Badminton, Platform Tennis, and yes, even Table Tennis. We’ve said it before; isn’t it about time we host an event including everyone, call it The Racket Olympics? If we are going to compete with the cost of real estate in a world that is becoming increasingly populated, we need to compete with all our resources. Maybe more importantly, the large organizations that oversee all these racket sports need to get together and help each other grow, instead of always comparing and measuring who is the most popular or is growing the fastest. Not just for the survival of the business of racket sports, but also for those still enjoying all those sports and those who are making a living from those sports.

We need to increase the popularity of all racket sports to push cities and towns to insist that these racket sports be included in their communities. After all, the definition of community is: A community is a group of people connected by shared geography, interests, values, or identities. It provides a sense of belonging, mutual support, and collaboration, allowing individuals to pool resources and tackle challenges together.

So, it’s more than just an area of residence and housing; it is one of the foundations of a lifestyle that racket sports can provide.

The Directors Club, Jarrett Chirico: Palmetto Bluff is one of the most
breath-takingly beautiful properties in the world. A truly extraordinary place where timeless Southern charm, natural beauty, and world-class hospitality come together in a way that is almost impossible to describe.

Most people do not leave tennis because they have stopped enjoying it.

More often, tennis has simply become too difficult to keep in their life.

Read the full story and be inspired.

Rod Heckelman

Rod Heckelman's career started in 1966 when he began his 5-year role as a teacher at John Gardiner’s Tennis Ranch in Carmel Valley, California. Later he opened as the resident pro for Gardiner’s Tennis Ranch on Camelback in Scottsdale, Arizona.

In 1976, he took over as head professional/tennis director at the Mt. Tam Racquet Club in Larkspur, California, and added the title and responsibilities of general manager in 1982. After 48 years, he retired to work exclusively in helping others in the industry. 

In 2010, he was awarded “Manager of the Year” for the USPTA NorCal Division and the “Manager of the Year” at the USPTA World Conference. Rod has written several books, including “Down Your Alley” in 1993, “Playing Into the Sunset” in 2013, and most recently, “250 Ways to Play Tennis.”

He also produced the “Facility Manager’s Manual” and the “Business Handbook for Tennis Pros,” which is distributed by the TIA.