INDUSTRY OVERVIEW
Leisure Growth Company (elements®) is taking advantage of the large and growing worldwide market opportunity in fitness by launching a series of horizontally and vertically integrated subsidiaries and divisions. The Company should continue to benefit from the following favorable trends currently impacting the U.S. health club industry: (i) empirically measured longer work weeks among Americans, sustaining interest in “express” workout centers; (ii) rising health care costs; (iii) aging baby boomer generation; (iv) continued trend toward obesity among the U.S. population; and (v) increased awareness from consumers toward the need and benefits of a healthier and more active lifestyle.
(REVIEW LEISURE + WELLNESS INDUSTRY STATISTICS HERE)
REAL ESTATE AND SITE SELECTION
Leisure Growth Company boasts impressive national as well as regional real estate and site selection teams. The company partners with an experienced, accredited site selection service to perform initial market research, as well as substantial data collection for new markets considered. An active, on site real estate team also helps the executive team evaluate opportunities within the markets. Opportunities may include landlord build-out, conversion of existing (non-branded) fitness and weight loss centers, hotels, resorts, new retail development projects, or new development opportunities.
A national partnership with Federated, a respected national real estate developer and brokerage affords elements a full‐service internal real estate, development, and construction team. Locally, teams up with a well-respected commercial real estate grow in each new development market or region to fully integrate our services with local site selection.
Since real estate (rental) costs are one of the major operational cost categories for retail units, considerable resources are invested to ensure a meticulous site selection process, which includes lease negotiation as a fee-for-service for all retailers. Using this system, brand operators benefit from a combined team negotiating and scouting on their behalf, and can feel more secure in the foundation of their business, the location.
Specific points, such as corner units, increased visibility and signage, large glass storefronts and maximum ceiling heights are all negotiated and considered while making final site determinations. In total, the company has a proprietary 18 point site review and scoring process, which has resulted in prominent storefronts and high visibility, translated to increased walk-in traffic and revenue.
Under the Master Developer program launched in Q4 2016, the national site team will assist the new Regional teams on protocols in local site selection, and perform the critical review and deal negotiation services. Regional Developers will have an ongoing access to new inventory and offerings within their region, to assist in optimization of sites. The Regional Development team will work on an ongoing basis to pre-identify opportunities in target markets, and will increasingly source new franchisees by matching prospects with (pre-determined) desirable locations and landlords, significantly shortening the launch process.
Leveraging the regional relationships, contacts and experience of Federated and CBRE, along with the curb appeal and operations track record of elements has proved to be a very successful development strategy. In our experience, landlords are often willing to contribute towards the capital requirements of development to open a new retail facility. Our system helps to ensure landlords an on time, on budget delivery, which increases comfort levels for all parties. Our LG brands, most importantly, are able to attract a very desirable demographic to a resort or shopping center, with in-place marketing programs to enhance traffic for all neighboring businesses.