Market Analysis
Katy, Texas
“You’ll Love Katy”- the ideal place to live, work, and play.
This is depicted by the welcome sign as you enter the city of Katy. This
community prides itself on the welcoming attitude felt when entering the city.
Katy keeps the old town heritage while at the same time welcomes new ideas,
businesses, and families to share and contribute to the new and exciting things
that are available in the City. The area of Katy is part of the major
metropolitan area of Houston. This City provides a community spirit, safe
neighborhoods, and excellent schools. With a population increase of over 300%
in the last 30 years, Katy is growing at a rate that is encouraging and
demanding development.
Major employers
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KISD
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BP America
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Conoco/Phillips
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Wood Group/Mustang Engineering
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Katy Mills
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Shell Oil
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Academy distribution center
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Igloo products
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HEB
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Exxon/Mobil Chemicals
The property outlined for the development of Casey’s Gym
happens to be just 10 minutes south of Bridgeland, which is one of the newest
and highly rated housing developments of the west metropolitan area of Houston.
It is also just 5 minutes north of I-10, which is the most efficient highway in
the nation for the amount of people that utilize it everyday.
Area
The area for Casey’s Gym consists of a middle class variety
of individuals and families that could utilize the gym and all it has to offer.
The median household income is $56,591 with an unemployment rate of 4.1%, well below
the national average. The population within the immediate area of a mile is
7,027, with 1,929 family households. The main population consists of mostly
white and black populations with a very small mix of Hispanic, Asian, and
multiracial populations. With a median house value of $130,300, this area represents
good value since the median house value only a little over a mile away is
$179,500. The median age for the area is 28 years old with a good even split of 50% male and 50% female.
The property
It is expected to have low maintenance costs for the
first decade of operation since this building was built this year and is brand
new. This retail outlet will be easily compatible to allow a gym to fully
operate. Since the building is new, its floor plan has enough open spaces for
general work out equipment and machines; some offices for management; and a
potential to create several group exercise rooms.
Target Market
Casey’s Gym will target market will include:
·
Both black and white populations ages 24-50.
·
Families as well as single adults
·
Employed individuals with household incomes of
$40,000-$60,000
·
Active and outgoing people with a need and
desire for a healthy lifestyle
Secondary Target Market:
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Children ages 3 and up for swim lessons and
athletic development.
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Obese adults and children who need extra guidance to accomplish their goals.
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Those whose unhealthy lifestyle has brought them
to need an abrupt change for a healthy lifestyle.
Comparable Properties
Cinco Ranch Village, 23144 Cinco Ranch Blvd Katy, Tx 77450
This comparable property comes in at a
cost of $4,285,136 with 20,000 SF. Which yields a price per SF of $214.26. This
retail property is with in 10 miles of the possible site for Casey’s Gym. The
square foot count is around the same but the price is around $700,000 more. This
premium even though encompasses .78 more acreage, would not provide the best
location or the best building. The Cinco Ranch community is well established
and would not have the opportunities to attain customers as the Fry road
property. This strip center styled retail outlet would also need a lot of work
with renovations in order to make it compatible for a gym and aquatic center.
SWOT analysis
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Strengths: The property is 5 minutes north of
I-10 and 10 minutes south or Bridgeland. The area is in an area that offers
potential for continuous growth of the community. The building is also custom
to own which will allow renovations to begin immediately once purchased. The
building is also brand new which should allow just minimal building maintenance
costs.
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Weakness: The price per square foot is higher
than the average for Katy, Tx. This higher price is due to the fact that the
building is new and the property was recently developed. Developing the aquatic
center would involve high start up costs.
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Opportunity: Casey’s gym will be the only Gym
with in the immediate area that will have an aquatic department that will
promote wellness and recovery through water aerobics classes, swim
lessons, and appeal to the average fitness swimmer.
- ·
Threats: The competitive environment for
athletic clubs is tough with several gyms in Katy and even within 5 miles of
the prospective location. Casey’s gym will create competitive advantage through
its programs and offerings that will create value for its gym members.
Demographics for this area
Population: 7,027
Households: 1,929
Family households: 1,622
Non-Family households: 307
White Population: 3,604
Black Population: 2,004
Asian Population: 4
Hispanic Population: 158
American Indian Population: 2
Multirace Population: 330
Other Population: 797
Median household income: $56,591
Median house or condo value: $130,300
Median contract rent: $902
Unemployment: 4.1%
Residents below the poverty level: 5.5%
Median resident age: 28
Males: 50%
Females: 50%
Lifestyles
Health is an ever
increasing concern to the general population, not just the community of Katy.
We only get one body and our bodies have to be taken care off in order to
remain and be healthy. Over the past several decades, personal health has been
a growing issue. People have become aware of the affects that a lazy lifestyle and
poor nutrition can cause. As science studies this, reports consistently show a
need for individuals to exercise. Once people become avid gym goers they need
variation to avoid burning out or getting bored with the same routine. Casey’s
Gym will be there to help individuals reach their goals of a healthy lifestyle
and keep those hard earned results.
