Theatre Rent Costs?
Theatre Rent Costs?
#1Theatre Rent Costs?
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?
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#2Theatre Rent Costs?
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This article is from Nov 2021 so it may be a bit outdated but it stated a theater on Broadway would rent for $10k-$20k per week plus 5-7% of the show’s weekly grosses.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
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#3Theatre Rent Costs?
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#4Theatre Rent Costs?
Posted: 10/18/24 at 5:03am
Even if some theaters sit empty, theater owner just needs a few long-running hits to break even or still be profitable. Look at the Nederlanders. Out of their 9 Bway theaters, 4 are in the top 6 in this past week’s grosses (Wicked, Lion King, Hamilton, MJ.)
If the Nederlanders get roughly 7% of grosses, that’s easily $500k/week from those 4 shows alone.
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