SBA 504 Fitness Center Feasibility Study in Arizona

Maricopa County and larger gyms

Gyms and fitness centers in Arizona drew $32.4 million through 26 504 approvals between FY2017 and FY2026. A median of $925,500 puts them at 1.18x of the fitness benchmark in other states, and half of the loans lie between $579,000 and $1.5 million. Maricopa County carries 15 of them, with Yuma at 4 and Pima at 3. Arizona is 12 among states by count, gyms hold 8 of 39 within the state, and franchises account for 15.4%.

Three development corporations

Three corporations are named. The largest holder is Arizona Capital Source (12 loans, $14.6 million); The Mortgage Capital Development Corporation comes second (7, $10.4 million); and CDC Small Business Finance Corp. follows (6, $6.8 million). The first has the most loans, and the second the biggest average loan. In FY2022 the count peaked at 7 loans, worth $8.0 million, and FY2025 and FY2026 show 1 loan each.

Missing outcomes

No cancellation or charge-off percentage exists for Arizona clubs, the early groups having under 30 loans, so operators cannot be compared with national loss experience from this file. What can be said is that the book is concentrated in one county, that three corporations share it and that the average loan is large; each of these facts affects how a lender will read a new request.

Membership math for an Arizona club

The study should treat the building as the large cost and the membership base as the revenue. For the building, it should present the site, parking, zoning, construction bids and the mechanical systems that handle heat and humidity in an Arizona summer. For members, it should count households and daytime workers in the trade area, competing clubs, studios and low-cost chains, and the pricing each charges. Seasonal movement in membership should be modelled. The model should show joining fees, dues, attrition, personal training and add-on revenue, together with payroll and utilities. Because the median is $925,500, a project well above it likely includes a large format building, and the study should show the membership needed to carry it. The appraisal will test what another operator could pay for a special-use building.