In an industry where operational efficiency and member retention can determine success, there is one factor that stands out above all the rest when determining how successful a commercial gym is going to be: Location. The perfect location will drive constant foot traffic, even if the gym is lacking in certain areas. A poor choice will doom even the most well-equipped and best-managed place. 

According to data acquired by the U.S. Bureau of Labor Statistics, 20.4 percent of businesses tap out after the first year. By year five, 50 percent of businesses will have permanently closed their doors. But that doesn’t mean you have to stop dreaming of opening up your first gym, or second and third, it just means that you have to plan carefully. And the very first major decision you have to make is where your gym should be located.

Research the Demographics

If you aren’t looking at the data when determining where your gym should be located, then you are already on your way to failing. Demographics are the statistical data and characteristics of a specific population or group of people. When figuring out if a town or city can support a gym, look at the numbers. 

Household income brackets are a great place to start. Do the people have disposable income or are they struggling to survive? Are there plenty of places for employment around the area? Is the population interested in improving their health and fitness? People who have attained a higher education and are professionals are much more likely to join a gym. 

There are plenty of things to consider when looking at the ages of the people living close by, too. If it is an older population, plan for recovery equipment that will entice seniors to use the facility. A larger “recovery zone” could be just what you need to combat any competition.

5 Mile Radius

The average member travels between three to five miles to their gym. Convenience is key. If there is plenty of competition within a five-mile radius of where you would like your gym to be located, then it could be time to reconsider and view other options. Visit these gyms and witness how busy they are firsthand. When the potential competition is slow during peak times, then you have to wonder how they are keeping their own doors open.

Accessibility

You should want plenty of foot traffic, public transit, and major roads close to your gym location. As people go by, they should be able to view the gym signs as it will increase their excitement about possibly becoming a member. I once lived just two miles from a gym and didn’t even realize it. It was tucked away in the back of a building and only accessible after driving through a large parking lot. They had plenty of top-line equipment and the place looked nice inside. However, not many people even knew it existed.

Parking

If your potential gym location only has a handful of parking spots available, then it won’t work. People do not want to park on the street to attend their gym. They want to do their cardio inside the building, not out.

Safety, Security, and Neighborhood

A friend opened up a gym recently, and when I first came to check it out, I didn’t want to leave my car. It was not in the most desirable of neighborhoods. I’m a larger-sized guy, too, so if I’m wondering about the safety, then you know others are as well. 

Evaluate the crime rates, walk the neighborhood during all hours of the day, and consider neighbor compatibility. This might be your one chance to open a gym, and you don’t want it to fail before the doors open. Realtors may promote a location as an up-and-coming neighborhood. Don’t fall for the hype.

Determine If It Is a Commercial Location

Gyms are usually classified as a commercial business. You need to verify zoning approval and required permits for a location before even discussing a lease or ownership. Never sign a lease until you know for certain it is a commercial location. Residential zoning will not work for a 24/7 commercial gym as it will restrict business-time operations, noise, traffic, and parking.

Does the Location Have Opportunity for Growth?

Wouldn’t it be great? You open your gym, and the first month, you have 500 members sign up instantly. But suddenly, those 10 cardio pieces and three benches are not enough for the crowd that is coming in through your doors. It would be a good problem to have. Consider how you could be able to expand the space needed for the gym if such a thing occurs.

Location, Location, Location

For any property, location is key. An acre of land in a swamp is worth very little. An average acre of land in Rhode Island is worth $350,000. A great location with average execution will outperform the perfect gym in a mediocre spot. Choose wisely and don’t just go off “gut feelings”. You may have just this one opportunity to open your dream gym. Find the right place that will help it grow instead of hindering it.

Gym Insight

Ready to Open Your Gym or Make Needed Changes to Your Current One?

Gym Insight helps new and veteran gym owners manage memberships, handle 24/7 access, provide POS options, train employees, and keep track of revenue—all in one fully integrated platform, with no contracts and no third-party plug-ins.

Call 855-FOR-GYMS (855-367-4967)