A Tale of Three Fitness Businesses
Resiliency in the face of Austin’s fast-moving and expensive real estate market
According to a 2023 survey by CBRE, a global commercial real estate services and investment firm, Austin ranked as the second hottest market for investment in commercial real estate in the United States. In the second quarter of 2024, rent for industrial space increased 11.5% year-to-year to $14.49 per square foot, down slightly from the record high rents set in the first quarter of 2024. Space for fitness business is specialized, and many different factors, including adequate parking, location, and a limited amount of suitable inventory, have made finding a place to land challenging. So, when local fitness businesses are forced to relocate or want to start a new endeavor, how do they find the right space? What does it take in Austin’s extremely competitive real estate market? Austin Fit put that question to three seasoned local fitness professionals.
Travis Holley, Travis County Strength
Forced to relocate due to the expansion of I-35, Holley was given a six-month timeline to relocate his thriving business, which had occupied the space for six years. Although the timeline was daunting, Holley felt he had plenty of time, only to be shocked at the limited inventory available to meet his needs. Fortunately, both the Texas Department of Transportation (TXDOT) and his landlord worked with him, recognized his tenant rights, and extended his timeline by three months.
“I was extremely discouraged with the limited options I found. The going rate seemed outrageous and out of reach. Things were much different six years ago, and it’s a daunting prospect to find space in 2024.”
Fortunately for Holley, one of his gym members was a commercial real estate broker and wanted to help. He knew what Holley was looking for and all the variables that would make a space work for a fitness business – location near the old location, affordable price, layout, and adequate parking. He showed Holley a warehouse space that had been vacant for some time and had previously housed a guitar shop. The location, price, and layout all worked. A major concern was that it was located next to a residential neighborhood. Holley introduced himself to the neighbors, reassured them, and addressed their concerns before taking the plunge. “Getting the neighbors on board was important to me. I stay in communication with them, and they have been amazing. They are active and excited, and some of them are becoming members.”
Holley was also fortunate that, having had an established business for eleven years, he had built up a bank account that allowed him to move and build out the new, larger space without taking out a loan. With the extensions given to him by TXDOT and pushing permits and contractors, Holley was able to move into his new space with only one week of downtime. With the help of sixty friends, staff, and members, Holley executed a “community moving day” and was up and running in early October.
“Something is working in my favor, and I am grateful for all of the help I received from everyone. Don’t get me wrong; it was extremely taxing – stretching me emotionally, physically, and financially. It was a tough go, but I had good people helping me. In the end, it turned out well, and I can continue to do what I love – help people build strength and confidence. The move gave me, my community, and the business the opportunity to grow.”
Holley’s best advice for facing this kind of challenge? “Don’t be afraid to ask for help and lean on good people. Once you commit, don’t second guess. You can’t change the game plan once the lease is signed. Just go forward with the attitude that it will work out, and things will be better than before.”
Photo Credit: Weston Carls
Photo Credit: Weston Carls
Photo Credit: Weston Carls
Stephanie Kincheloe, Love Cycling
When your lease is abruptly not renewed shortly after you have survived the Covid pandemic and you are in the process of clawing your way back to making your business work, how do you keep going? If you are Stephanie Kincheloe, you do what it takes to survive and land in a space appropriately located on Perseverance Drive.
“It was a tough hit. We had been in our space on Pressler since we opened in 2015, had no issues as a tenant – we paid our rent through covid even though we weren’t making money. In 2022, we had a dispute about what was causing the space to have a sewage smell, and even though I had the renewal contract on the table, I was told it would not be renewed. The owners of the building are not local – it is owned by a REIT (real estate investment trust) out of Boston, and they had no feelings for a local, small business. Instead of spending my time and money fighting a company with deep pockets, I started looking for a space to relocate.”
Kincheloe was devastated but began to find ways to stay viable while she looked for space. She conducted pop-ups and stayed in touch with her clients. LOVE was completely shut down for seven months. Nevertheless, Kincheloe persisted and kept her ear to the ground. Through word of mouth, she learned that a fitness studio in the Grove, a new development in central Austin, was going out of business and approached the owners before it went on the market. The space being located on Perseverance Drive seemed to be a sign of going ahead with the space.
“The space was bigger than we needed, but the market is crazy. The location was only six minutes from my old studio and the development was beautiful in an upscale area.”
There were several challenges that Kincheloe had not completely anticipated. Build-out costs came in at 30% higher and took longer than expected. Even though the Grove was a beautiful development, it was still under construction and that became a problem. People did not know where it was and got confused with the popular restaurant also named The Grove. The development was not advertising or helping the tenants advertise. With the lag time, LOVE’s social media suffered, throwing the algorithms off, which affected getting out the word to her clients that LOVE was once again open for business. Although LOVE’s clientele was loyal and most returned, some members had sought other spin classes and other fitness modalities during the downtime.
LOVE reopened in its new location in September 2022, and Kincheloe observed that during COVID, people became less socially interactive and took longer to return to things like spin classes. As people began to return to work, there was also a shift in consumer spending, and fitness became a luxury – an option. Psychologically, the isolation of COVID slowed down people’s desire to interact socially, which slowed the ramp-up of the reopening.
Despite the challenges, Kincheloe used her savings to relocate, build out, and keep LOVE cycling afloat. She was encouraged by the support of the community she had built, and most of her instructors returned to teach in the new location. The space is new, fresh, and beautiful. With a business fueled by passion, built with love, and located on Perseverance Drive, Kincheloe feels like a phoenix rising from the ashes. She remains enthusiastic about the future and optimistic that she can build an even bigger community for LOVE.
Photo Credit: Love Cycling
Photo Credit: Love Cycling
Photo Credit: Love Cycling
R.P. Stuart, Personal Trainer
R.P. Stuart cannot remember when fitness wasn’t part of his life. Growing up in Austin, Stuart was a standout athlete at Anderson High School, competing in football, baseball, and track. He played football at Louisiana Tech University, where he received his degree in Kinesiology and Exercise Science. Stuart has been in the fitness business for twelve years, starting out at Body Business, where he did everything from working the front desk, selling memberships, and cleaning the locker room until he worked his way to training and conducting classes full-time. For the past four years, Stuart was the Director of Programs at HIT Fitness. This year, Stuart decided it was time for him to strike out on his own and live his dream of starting his own business.
“Austin is known as ‘Fit City’, and I have always wanted to be part of the growth of the industry in my hometown. It is my dream to do my own thing, and it was a natural fit. I have been surrounded by great coaches all my life. It is the only thing I have ever wanted to do.”
As the idea came to life, Stuart put together financials and a solid business plan. Knowing that the main reason start-up fitness businesses fail is starting out in debt, he decided to stay lean and look for affordable space. In April 2024, he began to look for space near Burnet Road in an area that would be convenient for the community he had created as a personal trainer and fitness coach. He also needed a space where the build-out would be relatively simple, and parking would be available.
“I was surprised by how difficult it has been to find a space that ticks off all the boxes for me. We would find a space, and I would talk to the landlord, and nothing would happen. There were several different times when I was certain it was going to work only to be disappointed and find myself back to square one. I found that landlords are hesitant to lease to fitness businesses for several reasons – they are concerned about parking and people coming and going, they worry about music playing all day. As an independent entrepreneur, I didn’t have corporate backing, and as a start up, I had to make a case for myself to the landlords. Sometimes, there would be as many as fifty people interested in a space, and what it comes down to is who can pay. Fortunately, I have a partner who helped me build a case showing the financials, business plan, my client base, and recommendations from mentors and others who have worked with me over the years. Securing a lease has been the biggest obstacle to opening the business.”
After months of searching, Stuart has found a location that checks off all the boxes and is in the process of securing the lease and getting bids from contractors and electricians. He is optimistic and hopeful that once he gets the green light, the work can go quickly, and he can realize his dream in late November or December. Plans are for Stuart and three to four coaches, each with their own book of business, to utilize the space. He also plans to add Pilates and yoga instructors. His goal is to work closely with each professional to focus on total wellness, building a supportive and encouraging atmosphere as they create and grow a community together.
In the meantime, Stuart has created a gym in the garage of his Northwest Austin home where he can do one-on-one training with his loyal clientele. He also travels to some of their houses. While it is not ideal, his clients are willing to go the extra mile for his services.
“My approach is to know each person I serve individually, whether they are in a class or one-on-one training. I like to know what makes them tick and what motivates each individual, and I like to help them set goals. I want a studio to serve as a place where we can hold small classes for groups of nine to twelve and appointment-based training. It is my calling to serve in the fitness community, and with a little bit of luck and a lot of persistence, I’m going to make that dream come true.”
