Indoor swim instruction tenants have proven to be viable and recession-proof, especially as landlords look to fill shuttered big-box space in their neighborhood shopping centers. Swim instruction tenants guarantee foot traffic and are a retail segment unaffected by online ordering trends that can reduce daily customer counts. Also, as opposed to other educational school tenants, swimming cannot be taught over video chat. Other retail brands can benefit from a swim school co-tenancy, such as convenience stores, restaurants, dessert/snack venues and grocers, as parents and children alike want to visit these establishments throughout the day.
Millennials are the sought-after demographic for swim schools, as they are entrenched in the child-rearing stage of their lives. Look for family-oriented regional and neighborhood power centers and strip mall spaces in middle-income to affluent suburban areas to be targeted. Close proximity to elementary schools and destinations within 30 miles to an ocean or a lake will also be desired. The top three swim instruction brands in expansion mode include Big Blue Swim School, Goldfish Swim School and Aqua-Tots Swim Schools.
Big Blue Swim School expects to open between 125 and 150 new units per year over the next two years. Big Blue is currently shopping for sites in California and anticipates opening up to 65 units in markets near Los Angeles and San Francisco, starting in 2022. The swim school also signed a 37-unit deal last year for growth in the Southeast, specifically centered on Atlanta, Lexington and Louisville, Ky., Nashville, Charlotte and South Florida. Look for the Northeast to also be targeted, especially within the suburbs of Washington, D.C. Big Blue seeks end cap, freestanding or inline units in Class A retail space, in the 8,500- to 15,000-s.f.range with 100 parking spaces, in densely-populated affluent communities within both suburban and urban locations. Sites should be within the daily commute of parents such as near elementary schools or grocery,fitness and department stores, including Kohl’s, Trader Joe’s and Planet Fitness. Level 5 Capital Partners,the investment company responsible for the CorePower Yoga growth, acquired a majority ownership in BigBlue Swim School four years ago and is helping the brand expand through franchising.
Goldfish Swim School is looking to open approximately 45 new units per year over the next three years. The brand recently signed multiunit deals for development into Texas, especially Houston, as well as Florida, Virginia, Arizona and New York. Goldfish Swim School is also looking to expand into California, specifically regions near Los Angeles, San Francisco, San Diego and Sacramento. The brand currently has 137 sites in development, and anticipates further growth in the South, Midwest and West, including Louisiana, Colorado, Utah and Oklahoma. Goldfish Swim School ideally seeks space in the 6,500 to 7,500-s.f. range within suburban and metro residential neighborhood strip malls and power centers with other child-centric co-tenants, such as Pigtails & Crewcuts and Baskin-Robbins, as well as popular discount stores, including Dollar Tree and Five Below.
Although Aqua-Tots Swim Schools is currently focused on expansion outside of the U.S., the brand still expects to open approximately 20 to 25 new U.S. units per year over the next two years. Areas targeted for growth include Florida, Utah and Southern California. Aqua-Tots seeks inline or end cap retail space in the 5,500-s.f. to 7,500-s.f. range within neighborhood power centers outside of metro cities, with high traffic co-tenants such as Walmart, Dick’s Sporting Goods and Whole Foods Market.
