Texas Real Estate Business magazine covers the multifamily, retail, office, healthcare, industrial and hospitality sectors in Texas.
Issue link: https://texasrealestatebusiness.epubxp.com/i/817755
www.REBusinessOnline.com Texas Real Estate Business • May 2017 • 51 coming in from all over Austin and saying they would love a JuiceLand in their neighbor- hood." In terms of site selection, JuiceLand targets locations where landlords are amenable to hav- ing murals painted on their properties as part of storefront signage, or on the side walls of end- cap locations, says Faludi. "The murals represent the support- ability of the company culture," says Faludi. "With so many guys getting into the juice bar business, that cul- ture is a big part of what differentiates JuiceLand." Artwork notwithstanding, Juice- Land has relatively simple leasing requirements. An average store size of 1,200 to 1,500 square feet enables them to operate comfortably in both strip center and freestanding loca- tions. As juice bars are often classified as "grab-and-go" retailers, parking re- quirements are minimal as well. These basic leasing requirements, combined with a clear understanding that their products require a high-end customer base, makes finding new lo- cations for juice bars a relatively pain- less process, says Jorge Diez, director of business development at Eloy Con- struction Interiors. "Juice bars are straightforward," says Diez, whose firm has overseen several such projects. "They're easy projects to plan for, but they're unique in the sense that we can suggest new designs or new build-outs for them. Custom designs help juice bars con- nect with the right kind of customer." Nonetheless, nailing down the ab- solutely best location possible is an evolving process, adds Diez. Many juice bars are currently looking for lo- cations near or next to fitness centers, banking on the overlap between each retailers' target customer. "In Texas, we've built five fitness centers — all with juice bars right next to them," he says. JuiceLand opened its first locations in Houston and Dallas in 2016 and is currently expanding in both these markets. Fitness at Your Leisure With Texas adding several hun- dred thousand new residents every year, many under the age of 35, com- petition among fitness centers in the state is heating up. Boutique and full- service gyms alike are opening more locations across the state, upping the premium on retail space in both strip and big-box retail centers. Dana Walters, senior vice president at MYCON General Contractors, has been involved in the construction of multiple LA Fitness locations in Texas. She notes that certain types of retailers, including fitness centers, are emerging as preferred anchors in Texas. "As online shopping continues to dominate, entertainment, food and health are increas- ingly popular an- chors," says Walters. "Fitness centers can be a unique blend of all three. They typically draw con- tinuous visitors that become customers of the tenants sur- rounding them." In Texas, the cur- rent market suggests that to be successful, gyms with small footprints should of- fer niche workout classes and routines while gyms with big footprints should offer the kitchen sink. Smaller-sized clubs that fail to establish a unique workout package are falling victim to the competition, according to Walters. So how is it that Minnesota-based Anytime Fitness and its 24-hour, 4,000- to 5,000-square-foot gyms have established such a firm foothold in Texas, where approximately 8 percent of its 3,000-plus worldwide locations are situated? Richard Parnell, vice president of franchise real estate for Anytime Fit- ness, credits its success in Texas not only to the state's business-friendly environment, but also to the compa- ny's ability to pinpoint an untapped segment of the customer base. "When we expanded into Texas, there were lots of big-box gyms and some low-price gyms," recalls Par- nell. "However, there were very few 24-hour gyms that catered to members' schedules, which is a market the compa- ny dominates. Fran- chisors and franchi- sees were quick to respond and beat other competitors to smaller markets." The International Health, Rac- quet and Sportsclub Association has ranked Anytime Fitness as the fastest- growing gym franchise of the last de- cade based on new gyms opened each year. The company's ability to meet the unfulfilled demand for 24-hour gyms with small store sizes that fit comfort- ably into strip centers enabled it to minimize rent and overhead costs, which are major items on gyms' books, according to Walters. The fitness chain's penetration of Texas — approximately 230 active gyms — encompasses at least 10 lo- cations in each of the four major met- ros, as well as three to four locations in second-tier cities such as El Paso, Amarillo, Lubbock and Tyler. Approximately 60 more locations are slated to open in Texas within the next two years, primarily in smaller markets. Further expansion in south Texas is possible as well, as the com- pany has only one location in Corpus Christi and none in Brownsville, Lar- edo or McAllen. n As online shopping continues to dominate, entertainment, food and health are increasingly popular anchors. — Dana Walters, senior vice president at MYCON General Contractors The average Anytime Fitness location spans 4,000 to 5,000 square feet, enhancing the company's flexibility with site selection. As one of the first 24-hour gyms to hit the Texas market, Anytime Fitness now operates 8 percent of its worldwide volume of stores in the Lone Star State. Jason Faludi Aquila Commercial Dana Walters MYCON General Contractors Richard Parnell Anytime Fitness