Or, risk missing out on the perfect site because you didn't have your shit together…
Most gym owners think the real estate search starts when they begin looking at listings.
Wrong.
The search actually starts weeks before that.
Because the fastest way to lose the perfect space…
Is to find it before you’re ready to move on it.
And that happens constantly.
A gym owner calls me up.
They’re excited.
They’re motivated.
They want to move fast.
“Stu, let’s start looking at spaces.”
Cool.
But then I ask a few basic questions and the whole thing falls apart.
No financing.
No contractor.
No lawyer.
No idea what the buildout will cost.
Which means if we actually did find the perfect location tomorrow…
You couldn’t move on it.
And the landlord would lease it to someone else.
So before you start touring spaces, you need four things in place.
Not optional.
Required.
1. CRE Advisement
Hire a commercial real estate advisor.
Preferably one who actually understands gyms.
That’s us.
The Gym Real Estate Company.
Our job is simple:
• Find the sites
• Vet the opportunities
• Negotiate the lease
• Protect you from getting bent over in the deal
And here’s the part gym owners always misunderstand:
You don’t pay us.
In almost every lease deal, the landlord pays the brokerage commission.
So you get professional representation on a multi-year, six- or seven-figure commitment…
And it costs you nothing.
Trying to DIY commercial real estate is like representing yourself in court.
You can do it.
It’s just a really bad idea.
2. Financing
Next question.
Where is the money coming from?
Because if the answer is:
“Uh… I’m figuring that out.”
You’re not ready to start searching.
If you’re a startup gym, your options are usually:
• Raise money
• SBA loan
• Self fund the project
That means you should already have things like your Personal Financial Statement (PFS) ready.
You should already be talking to lenders.
Because the moment we find the right space, the bank is going to want documentation immediately.
If you’re an existing gym, the expectation is different.
You should already be profitable.
And ideally you’ve been pre-approved for financing that covers:
• Equipment
• Construction
• Operating capital
• Any other startup costs tied to the new location
If you don’t know how the project is getting funded…
You’re not ready to shop for buildings.
3. A Commercial GC & Architect
Here’s another thing that slows deals down.
Gym owner finds a space and says:
“Yeah we probably won’t need much buildout.”
The second someone says “probably,” I know they have no idea what they’re talking about.
Assume you’ll need an upfit.
Hope for the best.
Plan for the worst.
Which means you should already have a commercial general contractor you can call.
Ideally, you also have an architect at this phase. However, an experienced GC can provide a ROM (Rough Order of Magnitude) before an architect gets involved. Just know that the amount is likely to increase after architectural drawings are finalized.
When you walk a space, they help answer the questions that actually matter:
• How much will the buildout cost?
• What structural work is required?
• Do we need new plumbing or electrical?
• Is the HVAC system sufficient?
• How long will construction take?
Without those answers…
You’re guessing.
And guessing on construction costs is how gym projects blow up financially.
Also, one more thing.
Do not bring a residential contractor into this process.
Commercial construction is a completely different game.
4. A Lawyer Who Reviews Commercial Leases
The last piece is a lawyer.
Not your buddy who handles divorces.
Not your cousin who did a traffic ticket once.
A lawyer who understands commercial leases. This is who we always recommend.
Because commercial leases are long.
They’re complicated.
And they’re written heavily in favor of the landlord.
Your attorney’s job is to:
• Review the lease
• Identify risk
• Recommend revisions
• Protect you from signing something that screws your business later
This is not the place to save money.
One bad clause can cost you far more than the legal fees ever will.
The Real Reason This Matters
Here’s the scenario I see all the time.
We find a location that checks every box.
Great visibility.
Right square footage.
Budget works.
Demographics are perfect.
And the gym owner says:
“Holy shit this is the one.”
But then the problems start.
They still need:
• Financing approval
• Construction estimates
• Legal review
And while they’re scrambling to organize all that…
Another tenant submits an offer.
And the landlord moves forward with them.
Space gone.
Opportunity gone.
Not because the space wasn’t right.
Because the gym owner wasn’t ready.
Preparation Is What Wins the Deal
Commercial real estate isn’t just about finding a space.
It’s about being ready to move when the right one appears.
So before you start your lease search…
Make sure you have these four things assembled:
- CRE advisement
- Financing
- GC / architect
- Lease attorney
Once those pieces are in place…
Now we can actually start looking.
And when we find the right location?
You’ll be ready to take it.