Fitness Center Feasibility Study in the Birmingham, AL Metro Area

Fitness centers rank 4 of 39 among Birmingham's asset classes, and the Birmingham, AL Metro Area itself is 65 of 608 for the class nationally. The record holds 35 loans and $19.9 million across FY2017 to FY2026. At 1.24x, the location quotient puts fitness above its national weight in local lending, which an all-class view of Birmingham would hide. A median loan of $331,000 is 1.28x the national median for fitness centers, so a Birmingham gym tends to carry a larger loan than gyms elsewhere.

Sizes, programs and brands

Middle-half loans span $220,050 to $559,500, a fairly tight band that makes an oversized request stand out. By program the cell splits into SBA 7(a) accounts for 26 and SBA 504 for 9. Franchise share is 25.7%, so franchise units are the smaller group beside independents. The study should settle early whether the proposal is a franchise unit, because the fee and equipment package alters both the build-out budget and the cash left to repay.

The one year that prints

FY2024 is the only year shown: 7 loans and $6.4 million approved. Remaining years for fitness center here are withheld, which leaves them undefined and never zero. One year cannot show whether Birmingham gym lending is rising or falling. This cell lists no lender and no county, so a reader should not infer which institutions or places carry the loans.

Questions for a fitness study

Birmingham fitness centers come with no cancellation or charge-off rate, since Loan Analytics prints one only on a cohort of 30 loans or more. A lender has no loss floor to lean on. A study must therefore test the membership base within reasonable reach of the site, the competing gyms and studios, the mix of memberships against the cost of space and equipment, and the months before the club reaches stable income. It should compare build-out cost with a loan near the $331,000 median, show that dues cover the debt through a slow season, and support the appraisal of a specialised space. These are earlier loans for context, and the record promises nothing for the next gym application. The study should also explain what is particular to this site, this format and this sponsor, and show it in numbers set beside the $331,000 median.