Fitness Center Feasibility Study in the Washington-Arlington-Alexandria, DC-VA-MD-WV Metro Area

The $286,100 median in Washington

SBA's records list 267 authorized fitness center loans in Washington, DC between FY2017 and FY2026, $114.3 million gross. Loans center near $286,100, and the middle half sit between $85,750 and $500,000. The Washington-Arlington-Alexandria median, 1.10x of the national one, lands above it for fitness center.

Washington, DC against the nation at 1.30x

Counting Washington by program, 7(a) has 260 loans and 504 has 7, so 7(a) leads. Washington-Arlington-Alexandria's 7 504 loans and 260 7(a) loans divide the work: property and machinery on one side, operating needs and deals on the other. In Washington-Arlington-Alexandria, 45.3% of the 267 loans carry a franchise brand. Of all areas, Washington, DC is 10 of 608 on fitness center loans; of all classes in Washington, fitness center is 3 of 39. A location quotient of 1.30x leaves fitness center taking a bigger share of Washington lending than nationwide, hinting at demand and rivalry alike. Fairfax County, VA tops the county list at 54 loans; Montgomery County, MD follows with 36, then Loudoun County, VA with 32. Washington is not a one-state market: DC, MD, VA, WV all fall inside it.

Who holds the 267 Washington loans

Washington-Arlington-Alexandria approvals were highest in FY2023 (35 loans, $13.7 million) and lowest in FY2022 (11 loans, $8.0 million). On the 7(a) side, SBA's biggest holders by loan count are Manufacturers and Traders Trust Company (69 loans, $15.3 million); The Huntington National Bank (27 loans, $6.2 million); Wells Fargo Bank National Association (17 loans, $9.2 million). SBA's file ties 69 Washington loans to Manufacturers and Traders Trust Company as current holder; it says nothing of how Manufacturers and Traders Trust Company underwrites. The Washington, DC cancellation floor is 20.6%, while its ceiling is withheld, not zero. In Washington-Arlington-Alexandria, 103 disbursed loans show a charge-off floor of 9.7%; the five-year rate is withheld.

The Washington-Arlington-Alexandria study: demand, cost, coverage, appraisal at $500,000

The market comes first: in Washington, fitness center sales depend on rival gyms and boutique studios, the memberships a trade area may sustain and how long members stay, and no count of 267 loans settles those. On cost, the Washington-Arlington-Alexandria study costs out locker and shower areas, a long lease and opening marketing against Washington, DC lease terms and Washington, DC contractors. Coverage in Washington, DC is tested at $286,100, $85,750 and $500,000 alike, because the record spans that range. Washington appraisers will value membership goodwill, the lease term and leasehold improvements one at a time, so the Washington-Arlington-Alexandria study should do the same. 267 Washington loans frame the study in Washington, but approval of any Washington project turns on that project (267 loans in all) and its lender.

How to read Washington-Arlington-Alexandria's $114.3 million

Placement of 267 Washington-Arlington-Alexandria loans runs on the project county. Fairfax County, VA counts toward Washington only through the July 2023 match, and an unmatched county drops its loans everywhere. Rates in Washington name their own cohort years, so cancellation (median $286,100) and charge-off differ in span.