How to Lease a Place for a Gym
Leasing commercial real estate presents different challenges from leasing residential real estate. Not only must the space be zoned for commercial use, but it must have the characteristics required for your business. For example, a gym must have separate locker rooms for men and women and several large rooms available for exercise classes and machines. Find a space that has many of the elements you need already in place so you don't have out-of-pocket expenditures redesigning the place.
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Instructions
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Determine what type of gym you're opening. For example, some gyms include basketball courts, pools and saunas. Some gyms focus less on equipment such as machines and free weights and more on bands and aerobic classes. Other gyms offer myriad options such as free weights, machines and classes. Knowing what type of gym you're opening allows you to lease the correct space for your business.
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Determine where you want your gym located. The success of many membership-based businesses depend upon their location, because they need people to be able to easily access their facilities. Therefore, find a location that already receives a lot of people coming and going on a daily basis. Heavily-trafficked malls and locations just off the highway and near places where people gather such as movie theaters and restaurants are all ideas.
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Contact a commercial real estate broker or agent. Commissions are structured so the tenant does not pay commission to the broker. The commission is paid by the owner of the space. Therefore, you might as well hire a broker or agent to help find you the space since it essentially costs you nothing. Make sure the broker is licensed within the state, and find a broker who has leased commercial spaces for business such as gyms in the past, so he has experience executing those type of contracts. Inform the broker of the general location you'd like for your gym.
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Contact your business insurance company. It is imperative for businesses such as gyms to carry insurance. With the risk of someone injuring themselves on equipment, you must make sure you're protected. However, before you start looking at places with your agent, ask your insurance company if there are any requirements for the space in order for the company to insure you. For example, the insurance company might insist that the space have wheelchair ramps or that a pool area be gated. Make a list of any requests, and pass this along to your commercial real estate agent as well.
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View various locations. As you view different locations, keep in mind what you need to do cosmetically to each location in order to open the gym. For example, you may need to install rubber matting where the weights are placed or wood floors where aerobic classes take place. Keep a list of what each location needs.
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Narrow down your selection. Once you've narrowed down the potential spaces, have your commercial real estate agent discuss with the owner's agent the changes you need made to the space. While you'll be responsible for paying for those changes, the owner must agree to the work that must be done. Some owners may remove their space from consideration depending upon the amount of work you need to do; this could make your choice a little easier.
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Contact various contractors for estimates. For example, if you need a steam room installed, contact a steam room installation company, and get estimates. If carpet needs to be laid, get an estimate from a carpet installation company. Keep a tally of the estimates for each location and based on cost, amount of work needed and location, select your gym space.
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Finish negotiations, and sign the lease. Through your agent, finish negotiating any final deal points such as the official start date of the lease and any other considerations you and the owner wish to have in the deal. Once the lease is signed, begin work on the space with an eye toward opening your new gym in the near future.
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References
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