Case study Xtreme Fitness 

Entering Warsaw meant entering a competitive market with higher rental rates. The supply of large premises located on a ground floor which could be adapted into a fitness club was limited. In addition, they have to meet special technical requirements, e.g. load-bearing capacity of the ceiling, soundproofing, routing utility systems and handling the intensive traffic of users. It was crucial to keep the project within a certain budget and finalise the decision quickly, as the project was of high importance to the management and influenced the pace of the chain’s expansion.

Together with the management, we defined the profile of the ideal location and translated it into a lease strategy, including technical requirements, reach, exposure and target financial conditions. We prepared an analysis of districts and micro-locations with the greatest potential for fitness services, taking into account existing access, parking and competition, followed by a short list of addresses for further talks. At the same time, we conducted non-standard searches, also looking out for premises not available through standard channels. We verified each space in terms of adaptability in order to reduce the risk of costly surprises after contract signing. We then translated the strategy into the terms of the agreement, agreed rates, incentives, lease periods and parameters to support the adaptation budget. This took 3 months from the presentation of the market analysis to the signing of the contract.

Xtreme Fitness Gym leased its first flagship location in Warsaw, consistent with the brand image and expansion plan. The quick closure of the process allowed us to immediately proceed to the stage of design and the club opening, avoiding downtime and excessive involvement of the team on the client’s side. The negotiated rental rates and the incentive package improved the profitability of the investment in the long term and kept the project within the assumed budget, despite the harsh realities of the Warsaw market. Technical verification conducted before the contract was signed helped us reduce adaptation risks and increase the predictability of costs and schedules.