Theatre Rent Costs?

[Call_me_jorge]

Posted: 10/17/24 at 8:56pm

I’m curious if anyone can share any knowledge they may have on rent prices that theatre owners may asking producers/shows to pay? How much is rent, typically, as a percent of the overall operating costs for shows. Should a show expect to see rent be 30% of their total costs?

[Wick3]

Posted: 10/17/24 at 10:25pm

This article is from Nov 2021 so it may be a bit outdated but it stated a theater on Broadway would rent for $10k-$20k per week plus 5-7% of the show’s weekly grosses. So for a long-running hit show like Wicked or Hamilton, theater rent can easily be at least $100k per week but for struggling shows it could be roughly $25k per week.

https://thehustle.co/the-economics-of-broadway-shows

[ErmengardeStopSniveling]

Posted: 10/17/24 at 10:37pm

Theatre owner gets about 7% of the gross.

The theatre owner also has a whole bunch of fixed expenses (staffing & operational costs) whose costs get covered by the show, which is usually 6 figures per week.

If the landlord owns their ticketing service (Telecharge, Broadway Direct, etc), that’s another way to collect money. Those ticket companies also include group sales arms that get a commission.

Then there are smaller things that add up:

• bar/concessions sales
• a nominal sliver of merch
• There are marketing services or email blast lists that can be purchased via the landlord
• Theatre owners sometimes invest in shows, so if it recoups that's another revenue stream from the show.

If Broadway is in a healthy place as it is right now (meaning theatres rarely sit dark), it’s a pretty cushy business for a landlord.

Updated On: 10/17/24 at 10:37 PM