PROGRAM AND SERVICE INNOVATIONS THAT WORK

5 Real Estate Strategies For Smart Expansion

Jon Eckman, new chief development officer of Chuze Fitness, shares his expertise.

BY Julie King

Today's commercial real estate landscape presents both opportunities and challenges. Many retail spaces are available—and often affordable—but how do you know if the area will support your business over the long term?

Disciplined site selection is critical when expanding your brand, according to Jon Eckman, new chief development officer at Chuze Fitness. Eckman was hired to help double the brand’s footprint over the next five to six years, and formerly performed similar duties with Harkins Theatres and ALDI retail stores both in the UK and the US.

Drawing on that experience, Eckman shares five real estate strategies that can position businesses for long-term success.

Eckman

1. Expand Existing Markets Before Entering New Ones

When growth opportunities exist, Eckman recommends strengthening markets where your brand already has a presence before venturing into new territory.

"For me, the first dollar goes into the markets we are already in," he says. "Density just wins.”

When you add a club in a market where you already operate, marketing investments work harder, operational efficiencies emerge, and you can better leverage brand awareness—with less risk.

"A brand-new market is a bigger bet with a longer runway," Eckman notes. "We saturate what we have first, then go into new markets when the timing is right."

“When strong national retailers have already done their homework and planted a flag nearby, that tells me the trade area holds up.” • Jon Eckman

2. Look at an Area’s Employment Base and the Presence of National Retailers

Population growth and household income are important metrics, but they only provide part of the picture. Eckman recommends also evaluating employment centers, retail co-tenancy, and the overall health of surrounding shopping centers.

"The employment base tells you a lot because members also come from where they work, not just [from] where they sleep," he says. “A strong daytime job corridor can add value.”

Established national retailers are a positive indicator, he adds.

“When strong national retailers have already done their homework and planted a flag nearby, that tells me the trade area holds up.”

Look for vibrant retail centers that generate consistent daily traffic. "A well-leased center brings traffic every day, and that’s your future membership."

3. Evaluate the Entire Local Ecosystem

A building alone isn’t enough. The surrounding environment often determines whether a location reaches its potential.

"A perfect box in the wrong spot is still the wrong spot," Eckman says. "The building has to fit our use, no question, but the ecosystem is what fills it."

Assess whether residential neighborhoods, employers, retailers, and traffic patterns all support membership growth. "I want the rooftops [individual residential homes or housing units], the employers, the retail draw, and the daily traffic all working together around that site," he adds.

As for looking at the competition, rather than simply tallying nearby gyms, operators should understand who competitors serve and whether there is an underserved customer segment.

“A market can look crowded on paper and still have a wide-open lane for our member,” he points out.

In some cases, locating near a competitor can actually be an advantage. “That intersection [i.e.,those who visit the area] is already trained to come there for fitness," Eckman says, “so when our offering and price appear, we can take share from a market that’s already showing up."

4. Don’t Trust Data Alone—Visit the Site in Person

Data analytics can narrow the field, but visiting a site is essential. "The data gets us to the short list, then we go put eyes on it," Eckman says. "You can only learn so much from a screen."

Promising locations may lose their appeal after an in-person visit—and overlooked sites can reveal unexpected strengths.

"I have walked sites that modeled beautifully and felt wrong the second I stood in the parking lot," he says. "And others that looked pretty average on paper came alive in person."

Likewise, operators shouldn't compromise on site fundamentals simply because a lease looks attractive. "Don’t chase a cheap deal instead of the right deal,” Eckman cautions. “A low rent on a bad site is not a win; it’s a slow problem you carry for years."

5. Negotiate for the Long Term

Operators should negotiate leases with a long view and flexibility in mind.

"You have to negotiate for the club you'll be running in 10 years, not just the one you're opening next year," he advises. "I want things that protect us for the long haul, like renewal options, co-tenancy protections, and appropriate exit clauses.”

Today's market offers significant opportunities as landlords increasingly value fitness tenants that drive daily traffic, but rising construction costs require careful financial oversight.

"You have to underwrite every deal honestly and move with discipline because the math is tighter than it used to be," Eckman says.

Whether opening a second location or a tenth, successful expansion ultimately comes down to patience and consistency. "If you believe in your brand, you wait for the right real estate," he says. "We do that at Chuze, and it's a big reason we open strong."

Health & Fitness Business is a publication of

Health & Fitness Business (HFB) is the leading health and fitness industry publication. Published monthly by the Health & Fitness Association (HFA) and distributed free to the industry, HFB offers analysis of the opportunities, challenges, issues, and news that impact the industry.

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