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Nov 02, 2024

Sky Zone plans Austin expansion - Austin Business Journal

Listen to this article 4 min A franchisee has already been tapped to open three locations in the metro and has sent letters of intent for properties in Cedar Valley, Leander and Round Rock. This

Listen to this article 4 min

A franchisee has already been tapped to open three locations in the metro and has sent letters of intent for properties in Cedar Valley, Leander and Round Rock. This article looks at the size of the investments and real estate needs. At the end of this report, check out a list of retail centers in the metro.

Sky Zone, an indoor trampoline park, is entering the Austin market with multiple locations.

Franchisee Kersan Partners Inc. has already been tapped to open three locations in the metro and has sent letters of intent for properties in Cedar Valley, Leander and Round Rock, said Mike Revak, president of Sky Zone Franchise Group. The first is slated to debut in the first quarter of 2026, according to a company announcement, although it didn't specify which city will be first.

Utah-based Sky Zone was founded in 2004 and operates wall-to-wall trampoline parks, offering freestyle jumping, ultimate dodgeball, foam play, slides, free climbing, zip lines, air court and more.

Revak said the Austin metro eventually could have seven to 10 Sky Zones. The business, which owns, operates and franchises more than 270 parks in the United States, opened a location in Frisco in January — its first in Texas.

Sky Zone is working with two other groups to potentially franchise more locations in the Austin metro, Revak said, although he declined to name them.

On average, a Sky Zone is between 25,000 square feet and 35,000 square feet, Revak said, although they can be as small as 16,000 square feet or as large as 50,000. The total investment to open one can range from $2.2 million to $4.7 million, depending on size, according to the franchise disclosure document.

The company works with CBRE for its leases, Revak said. Finding the right buildings to house a Sky Zone can take from three to nine months, he said.

Large retail spaces of 20,000 square feet or bigger in Austin can be difficult to come by due to a limited inventory for lease. The metro has about 20 such properties online. Typical users are centered around entertainment and activity like pickleball or gyms, or discount stores such as Burlington or Daiso.

“We have the luxury of going into old spaces, like taking up retail spaces occupied by old movie theaters (or) Buy Buy Babies,” Revak said. “Our upcoming location down in the other side of Texas was Stein Mart.”

Though the company prefers to open in an area with plenty of visibility to anchor a retail center, Revak said Sky Zones also can be "a bit off the beaten path" because they're destinations for people and drive their own traffic.

2024 Retail GLA