Future of Development Offers a
Silver
Lining to COVID Cloud
2020 Issue 3 | GearedUp
40
Every storm runs out of rain , and every cloud has a silver lining . The clichés reminding us that better times are coming seem , in some small way , to be comforting amid a pandemic no one saw coming . They offer encouragement that , indeed , this too shall pass . For Planet Fitness ® franchisees , finding a bright spot may involve looking around instead of up . Less than six months into the pandemic there is already evidence that the future of commercial real estate is not so sunny , opening the possibility for development deals down the line for the PF ® brand .
The impact of COVID-19 has already forced national fitness competitors into bankruptcy and left retailers across the country reeling from the economic fallout . In the wake are opportunities for franchisees and developers down the line .
“ We agree that the closure of larger format retailers will provide additional opportunities for the PF brand and the opportunity to acquire real estate at attractive cap rates . The value proposition that we believe will be available will allow us to open more clubs and acquire more real estate at discounted prices ,” explained Edward Eickhoff , chief operating officer for PFMG Development LLC .
Thinking that far ahead is complicated by the ongoing shifts in development by Jessica Loeding
schedules . While some franchise organizations have worked to complete clubs under construction when the coronavirus shutdowns occurred , others ordered a full halt on development as plans are restructured . “ As an organization , we decided to push back construction starts , lower our store count for this year and