Video Update, the fourth largest company in the video rental industry, is planning a move into Colorado that eventually will include the Springs' market.
The publicly traded video giant &emdash; which owns, operates, and franchisesvideo rental superstores &emdash; has plans to build stores in the Denverarea, and, within the next year, expand into Colorado Springs. The companyis pursuing aggressive expansion in the Colorado area, which includes thePikes Peak Region, according to Bruce Carlson, vice-president of real estateservices for Video Update.
"We have already completed primary site evaluation in the Springs," saidCarlson. "We plan on opening multiple stores in the Springs area, as soonas we are finished with the initial phase, which is the Denver metro area."
Currently, the business operates 240 Video Update stores located throughoutthe United States and Canada. Each store carries approximately 10,000 to25,000 videos.
The company located the majority of its stores in centers that include anchorssuch as Target and Wal-Mart. The company's exclusive commercial real estateagent in Colorado is CB Commercial. Peter Pavlakis, of CB Commercial, reaffirmsthe company's excitement about expanding into Colorado.
The company's stores typically range from 5,000 square feet to 7,000 squarefeet, with an average size store totaling approximately $350,000 in constructioncosts. Building costs can vary though, particularly if an existing buildingis purchased and converted into a Video Update outlet, according to Carlson.
However, Pavlakis noted the company does prefer free-standing locations on1-acre outlots or endcaps with pull-up parking in a trade area that has apopulation in excess of 25,000. Video Update also requires high traffic countson roads immediately adjacent to the superstore location.
The stores typically have 10 to 14 employees per store.
As of May 1, Video Update had total assets of $79.5 million and stockholder'sequity of $61.5 million.