Market Analysis

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

• ·        KISD
• ·        BP America
• ·        Conoco/Phillips
• ·        Wood Group/Mustang Engineering
• ·        Katy Mills
• ·        Shell Oil
• ·        Academy distribution center
• ·        Igloo products
• ·        HEB
• ·        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:

• ·        Children ages 3 and up for swim lessons and athletic development.
• ·        Obese adults and children who need extra guidance to accomplish their goals.
• ·        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

• ·        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.
• ·        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.
• ·        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.