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TOPIC: Your Opinion Of Lease Price

Re:Your Opinion Of Lease Price 17 Sep 2009 04:06 #32344

  • revrobor
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They dropped it to $5,500. and will give me the first three months free. There are CAM fees (common area maintenance - the house is in a strip mall on the main highway near downtown) that when computed on a yearly basis raises the monthly rent to $7,200.
Bob Allen
The Old Showman
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Re:Your Opinion Of Lease Price 17 Sep 2009 12:31 #32347

  • slapintheface
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That is high ...If you run it no manager of projection it will help ..That population number for that rent bothers me...... You know have to find an angel is that for cash? Should not cost you much to get into .....$30,000
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Re:Your Opinion Of Lease Price 17 Sep 2009 14:47 #32348

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I honestly believe my plan will succeed in that area. According to the property manager it is exactly what they want. That's the reason they are hesitant to lease it to any of the corporate big-boys who have checked it out. I am looking for $20,000. Do you think I should up it to $30,000.?
Bob Allen
The Old Showman
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Re:Your Opinion Of Lease Price 17 Sep 2009 16:10 #32350

  • trackfood
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I think that is VERY high, when you add those CAM fees into it. I truly wonder if they have anyone else interested. I would find it hard to believe that they wouldn't rather have a "corporate big boy" lease from them before an individual. That sounds like a story to increase your interest. I would try and get that rent down lower. How did the place look when you went there. Is it clean, what are the seat counts, how is equipment?
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Re:Your Opinion Of Lease Price 17 Sep 2009 19:19 #32353

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There is a total of 520 seats in the entire theatre, a little over 100 in each auditorium. The projectors are Century SA with Century soundheads and red readers. Full digital surround in one auditorium, analog surround in three. QSC 1400 amps. USL, DTS and Westar processors. Christie lamphouses (CH2000/CH1000). Christie Autowind platters. Equipment seems to be in good shape. Booth is a mess. Theatre not bad but property management had a janitorial service cleaning it the day I was there. Seats in excellent shape with cup holder armrests. I agree about the rent. But I also believe, with my plan, I can easily make it. Most well intentioned people who give me advise I believe do so from a position of running a theatre like every other theatre is run. From our programming to what we offer at our concession stand and with the video gaming center in one auditorium I believe we will be different and it will succeed.
Bob Allen
The Old Showman
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Re:Your Opinion Of Lease Price 17 Sep 2009 21:45 #32355

  • lionheart
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I would expect to do less with alternate content, not more. That is why successful art houses and repertory houses are usually only in big cities. If you have the option of doing first run in all houses, I think you should. You can book inspirational or classic films or whatever once in a while, but I would be surprised if these film-types would support dedicated screens. Also, if so many rooms are dedicated to other purposes, how will you ever be able to fit in the multiple big income films of the busy summer and holiday seasons? I like to get new firs-run films whenever I can, but it would be hard if you operate like that. Just my 2 cents.
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Re:Your Opinion Of Lease Price 17 Sep 2009 22:18 #32357

  • revrobor
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Thanks lionheart I appreciate that. Florence and the surrounding area is unusual in that more than one third of the population are retired, there is a heavy tourist population, it is very conservative and the theatre is a focal point in the community even as sloppy as the last owners ran it. And that area is GROWING even with the collapse of the timber and fishing industries. Running alternative content will require a lot of promotion on my part but there is a twice weekly local newspaper, a radio station (which is perfect for this former broadcaster), cable TV and a ton of churches. My son and a co-worker of his who do on-line broadcasting and gaming and who are planning the gaming center tell me that I will make more money with the gaming center than with the three other screens put together.
Bob Allen
The Old Showman
Last Edit: 17 Sep 2009 22:20 by revrobor.
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Re:Your Opinion Of Lease Price 17 Sep 2009 22:36 #32358

  • Ken Layton
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Rents still too high. With that low of population I don't think you can make it at that rental rate.

And if you lose one screen to video gaming that only leaves you operating as a 3 plex for movies and one less auditorium to move a popular movie into in the event of a major problem in another auditorium.
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Re:Your Opinion Of Lease Price 18 Sep 2009 08:11 #32363

  • trackfood
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I agree, that rent is HIGH. The seat counts aren't very big either. There really isn't a BIG auditorium. In one sentence you say the area is mostly retired, but in the next you are counting on making big money on gaming? Wouldn't that mostly be from the younger crowd? You will be working an uphill battle promoting the inspirational films you want to show. I still think if you stand a chance you will have to go mainstream films mostly. Like was already stated, independant/inspirational, etc. houses usually are in largely populated areas, where you have tons of people to draw from. I'm not trying to put your plan down, but its really the high rent that bothers me. If you weren't outlaying so much money a month, I would be more apt to try these different things. Did you check out what the grosses were the latest time it was open?
Last Edit: 18 Sep 2009 08:20 by trackfood.
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Re:Your Opinion Of Lease Price 18 Sep 2009 09:07 #32364

  • ReelET
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I agree that the rent sounds high. Is anyone else interested? How bad do they want (and need) to lease this space? Negotiate hard for a lower lease for your benefit. Get it down as low as you think they will go, and make sure they know you are not afraid to walk away if the price is not right for you. It is great to have those free months in the beginning to help you get started, but make sure you can still pay yourself something once the full rent kicks in.

Also, I would recommend researching the gaming industry to make sure the game room is attractive enough to draw the young gamers away from their already paid for big screen HDTV, comfy chairs, and free refreshments in the kitchen that they have at home. From my observations, many arcades that only have games are being closed. The more successful gaming businesses I know of offer go-carts, mini-golf, food, and other attractions in addition to games. It would take the right combination to convince people to leave their Wii, Xbox, or Playstation at home to go to a place where they have to pay to play. Getting the correct set-up could be expensive in the beginning and you would have to make a really good first impression.

I am not saying the idea is not good. I am just offering up my thoughts. I am sure you have considered many issues surrounding the situation and know more about it than I do. Basically, my advice is to figure out how to sell the EXPERIENCE of your movie and gaming business. You have got to draw people in based on something other than a few arcade games and some video consoles hooked to a TV.

As far as the dedicated theaters, I would make sure you knew what your customers want and play to their wishes. You may not need to dedicate screens full-time to different genres, but mix-and-match based on what you can select from.

Keep us posted and I wish you the best!
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Re:Your Opinion Of Lease Price 18 Sep 2009 11:11 #32365

  • rufusjack
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There are two relatively successful gaming centers in my general area. One is in a small population (less than 10,000) and does well b/c they buy/sell/trade movies and games. The second one focuses on gaming only and pulls from 100,000 people and is the only such business in town. I say successful as they are still open. A third doing mostly gaming in a town of 50,000 did not make it.

We do some gaming. We are currently expanding our theater to include a gaming room 100% of the time. I would rather have a 5th screen for movies but the ceiling height is only 10 feet and would only give a screen 14 ft wide at most (way too small for movies IMHO). I would be tickled to death if this room could generate 5% of revenues.

I really doubt if any corporate big chain guys are interested in this theater as it is small.

3 mos free rent means they expect you to sign long-term? I would rather no free rent I opene and have a 1 year opt out. You should be able to get free rent on the event that you stay. For example I have a lease that gives me 1 free month of rent upon the anniversay of my siging of the lease if I stay (my option to stay or go).
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Re:Your Opinion Of Lease Price 18 Sep 2009 11:54 #32366

  • Ken Layton
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A small town of about 5,000 population near me had one of these gaming places. They had a video projector in one end of the building along with computer gaming. Business lasted all of 4 months before folding.
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Re:Your Opinion Of Lease Price 21 Sep 2009 14:26 #32381

  • rufusjack
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Bob,

Can you give us a better idea of what gaming center that your son wants to do is?

Thanks
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Re:Your Opinion Of Lease Price 21 Sep 2009 16:45 #32382

  • rodeojack
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Bob, if you really want to do this...

First, I'd satisfy myself that there really are no "big boys" that might want the place. That could strengthen your negotiating position if you're the only one seriously talking to them.

Finally, I would want a 90-day no-penalty cancellation clause in the lease; one that you could trigger for any reason. If everything is what they say, and you think, you should not need it and they should not be uncomfortable giving it to you.

When the lease in my place finally hit $13,500 (for 4 screens), that's what I used to pull the plug and stop the bleeding.

If you feel you can live with whatever lease you negotiate and you have a "last resort" way out, you might feel it easier to try the programming & marketing ideas you feel would work there.

Good luck!

Jack
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Re:Your Opinion Of Lease Price 21 Sep 2009 18:22 #32383

  • revrobor
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rufusjack wrote:
Bob,

Can you give us a better idea of what gaming center that your son wants to do is?

Thanks

The auditorium would become a gaming center with several islands in the middle of the auditorium with computer controlled games and booths along the side walls with computer controlled games. Video projectors would split the screen (either one-half or thirds) for those who are involved in video game contests. Admission to the gaming center would be sold on an hourly basis. These are not the video games you may be used to seeing in theatre game rooms.
Bob Allen
The Old Showman
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