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Building in a Strip Center 19 Oct 2004 17:44 #9141

  • izod
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So I've found a strip center in a good part of Metro Atlanta that has about 39,000 square feet of vacant grocery store space. I don't know how much they want for it, but I'm hoping its less than 15 a square foot. At what point does being an independent hinder your ability to build a theater? Could I handle 39,000 square feet? I'm thinking 14-16 theaters, and/or an IMAX (that would be big here). I see my construction costs skyrocketing - but I also see possibilities. Any recommendations? Can anyone recommend the following things:
-Your booker
-Your architect (if you used one)
-Your cinema supplier

And does anyone have a contact as Boston Light and Sound? Thanks!

-Sam

[This message has been edited by izod (edited October 19, 2004).]
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Re: Building in a Strip Center 19 Oct 2004 23:10 #9142

  • RoxyVaudeville
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This is not a question that I can answer with any authority as I have not been involved with that kind of project in recent years.

The rent figure of $15.00 would seem very high to me for a theatre. I had a twin theatre in a fairly large indoor mall up until 1999 where I paid $4.00 per square foot. The retail stores in the mall paid $15.00 at that time, and the large anchor department stores paid only $2.00.

I also negotiated with another indoor mall for a new build 8 plex that was $4.00 as well.

I will be quite interested in what others are paying now in similar situations. Either in indoor malls ot strip centers that have been built since 2000.
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Re: Building in a Strip Center 20 Oct 2004 07:50 #9143

  • izod
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I've also been contacted by the strip center next to the closed grocery store - they have 13,800 of space (I need to find out the height of the roof) for $12psf and $2.75 psf pass-through. How many auditoriums do you think I could reasonably fit? The smaller space would be much easier to pitch to investors for financing, though it wouldn't have the same income as the larger unit. Any ideas?
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Re: Building in a Strip Center 20 Oct 2004 11:51 #9144

  • Ken Layton
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Roof height and the positions of any support post need to be considered.

If you choose to have sloped floor auditoriums you'll need to excavate. If you choose to have stadium seating you'll need to shell out big bucks to extend the wall height and raise the roof. Of course with stadium seating then you open up a real can of worms with handicap access!
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Re: Building in a Strip Center 20 Oct 2004 14:29 #9145

  • rodeojack
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$15 can put you under... just look at the current national grosses. The money's not there, unless you meet, or top the average, and even then... maybe not.

Also, the "asked-for" rent will not reflect triple-net charges. Over here, I've seen it add a bit over $4 to the cost.

Roxy had some good thoughts... I've seen square footage well below $12 ($1 per month plus NNN), and even that can prove challenging in a competitive market. You really notice things like that when you look at the 10 people in your 200 seat auditorium!


In any case, this is just one piece of a larger business plan. If you can massage something elsewhere in the mix, maybe you can get it to work. The numbers you're looking at still seem high, though.

[This message has been edited by rodeojack (edited October 20, 2004).]
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Re: Building in a Strip Center 20 Oct 2004 14:59 #9146

  • izod
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To clarify, they're looking at $12 psf, plus $2.75 NNN. It's a total of 13,900 square feet. How many auditoriums can I expect? What type of seating capacity? It's all flat floors with no basement, so I'm hoping that the roof is high enough. Once I get the floor plans in, I'm going to send them over to Harold. Thank's, all!
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Re: Building in a Strip Center 20 Oct 2004 16:34 #9147

  • Mike Spaeth
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Another thing to look at ... how close are the closest theatres and how many screens do they contain?
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Re: Building in a Strip Center 20 Oct 2004 16:48 #9148

  • izod
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5.5+/- miles east of a ratty independent 10-screen (in a different city). 5.7+/- miles south of an AMC 12 and a UA 8, which are at the mall, and share new releases. Both are getting old, as well.

[This message has been edited by izod (edited October 20, 2004).]

[This message has been edited by izod (edited October 20, 2004).]
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Re: Building in a Strip Center 20 Oct 2004 21:32 #9149

  • scotchie
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One word of caution .. I have been looking at buying a number of retail businesses (besides theaters) and have seen some profitable stores absolutely destroyed by the CAM (Common Area Maintnence) part of the lease. Basically these provisions allowed the mall owner to pass thru maintenance AND property taxes above the fixed lease paymen. (not exactly an ideal situation to hold down costs) I actually saw one that allowed the landlord to jigger the percentage of proprerty tax allocation to favor certain tenants (ie, the new ones he is trying to attract) at the expense of the others.

Be careful out there.
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Re: Building in a Strip Center 20 Oct 2004 22:39 #9150

  • izod
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And another one bites the dust. The main unit is 9000 square feet (64' x 135'), but its roof height at the front is 17'6" to the joist in the front, and 13' to the joist in the back. The two smaller spaces next to it start at 15' to the joist in the front, and go down to 13' to the joist in the back. That doesnt seem high enough to me. Opinions? I think I may contact the landlords of the grocery store and see if they'll subdivide it. The roofline in there is great. Would the smaller unit discussed about make it?

-Sam

[This message has been edited by izod (edited October 20, 2004).]
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Re: Building in a Strip Center 21 Oct 2004 01:34 #9151

  • outaframe
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Hello SAM, yes the ceiling heights are down below the ideal, but IF you are able to use the 17 1/2' and 15' ends as the screen wall, you aren't planning on any auditoriums much larger than 200 seats, AND you make the theaters wide enough to NOT have exits UNDER the screen, you could squeak by with those ceiling heights... The auditorium designs you choose is the determining factor...
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Re: Building in a Strip Center 21 Oct 2004 08:38 #9152

  • BECKWITH1
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We currently lease 13,000 sq ft for our 4 screen w/ 800 seats @7.38 sqf + CAM around 1.92. There is no way we would be able to afford rent @12 +2.75. Also in a metro area.
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