Fitness Center Feasibility Study in the Tucson, AZ Metro Area

Fitness centers in the Tucson area

In Tucson, AZ, gyms and studios take the fifth slot among classes, 5 of 39, while nationally the area stands 76 of 608. The record shows 28 approved loans and $15.3 million in gross dollars over the whole FY2017 to FY2026 span. The location quotient of 1.01x is essentially the national weight, so gyms and studios take their national share of Tucson's approvals. The median loan of $350,900 is 1.35x the class's median across the country, so the typical Tucson project is larger than the usual one elsewhere.

Range, brands and county

Loans from $194,250 to $705,200 form the middle half. Franchise brands attach to 35.7% of the loans. Pima County, AZ holds all 28. Nothing is printed on the program split, and no lender appears.

Only FY2018 prints, with 5 loans and $1.5 million. Every other year is held back for small counts, though that is no claim that they were empty. In a county where this many gyms already operate, a sponsor needs to prove that new demand exists for one more. Fewer than 30 loans make up the base, as here, and so cancelled approvals and charge-offs get no rate from Loan Analytics.

Testing a fitness project in this market

The ratios here say that Tucson is an ordinary market for fitness lending, with larger projects than elsewhere. A study should therefore concentrate on the site: the households within a short trip, the competing clubs, and the price a new facility can charge. It has to model the ramp in membership and the churn that follows an opening promotion, include equipment and brand costs, and set the build-out against a median loan of $350,900. Show debt service holding at a roster below capacity; the lender will check lease length against loan term. Because Tucson sits at parity with the national share but borrows more per project, the study should explain what justifies the larger build, such as more floor space, a pool, childcare or specialist studios, and prove that those features earn their cost. Tucson takes in a loan if its financed site's county appears among the areas on the July 2023 list.