As Tina and I embark on our quest for the ideal commercial property to establish a new escape room business, we’ve come up with our specific requirements. Presented here is an overview of our checklist, along with the rationale behind each one of those requirements.
Before delving into the checklist, it’s worth noting that we’ve considered the possibility of acquiring an existing location for our escape room business. If we were to find a site with decent existing games, this would allow us to take ownership and have revenue coming in immediately without the need for starting from scratch with build-outs and permits. This approach not only saves time but also provides the opportunity to enhance and gradually replace the current games with our own over time.
Unfortunately, that opportunity in our area has not presented itself, and I am pretty certain it won’t anytime soon. That leaves us with one option: constructing the escape room business from the ground up. The first step is locating a space that not only fulfills our business needs but, optimistically, aligns with our preferences.
Of course, while we have a checklist of things we want in a commercial space, we acknowledge the practical reality that obtaining every desired feature may prove near impossible.
High Traffic Location
We want to find a space that has high foot traffic, or at least on a busy road. After speaking with owners that have multiple locations, the consensus seems to be that having an escape room business in a high-traffic area, especially foot traffic, justifies the increased leasing fees.
Lots of Parking
Operating an escape room with limited parking has been a challenging experience for us in the past. The issue arises when the few available spots are occupied and our customers have to trek a considerable distance to reach our place. This often leads to their initial enthusiasm and energy being replaced with annoyance. Therefore, ample parking space is a top priority for us.
Multiple Restrooms
In our previous location, we had to share public restrooms with other businesses in the complex, which was far from ideal. We had to send our customers outside with a key to access these facilities. Moving forward, we want to have our own restrooms within our business. This will allow us to not only maintain their cleanliness and functionality but also to decorate them according to our theme. Additionally, we want to have multiple restrooms to minimize any waiting time for our customers.
High Ceilings
High ceilings greatly expand our options in set design. We’ve really enjoyed experiencing escape rooms that span two stories or feature elevated props, which enhance the sense of immersion and add interesting dimensions to the gameplay.
5000+ Square Feet
It seems the average size of an escape room is 300-500 square feet. Of course, that varies widely, but it’s a good starting point if you’re looking for commercial space. Because we want four multi-room experiences with room to grow, a couple of restrooms, a good-sized control room, and a large lobby with an area for merchandise, our initial search will be for a space that is around 5000 square feet.
Proper Ventilation and Climate Control
I’ve learned from conversations with several escape room owners that HVAC (Heating, Ventilation, and Air Conditioning) systems require careful consideration. Given the layout, which typically includes multiple rooms, effective climate control is crucial. Additionally, it’s common for landlords to delegate the responsibility for HVAC repairs to the tenants. Therefore, it’s essential to ensure that the HVAC system is in good working condition, and capable of adequately heating or cooling the entire facility. It’s also important to clearly understand and establish who bears the responsibility for any repairs – whether it’s the landlords, us as the renters, or a shared responsibility.
Good Lease Terms
If the right opportunity to purchase a property arises, we’re open to that option. However, considering the rarity of such a perfect scenario, it’s more probable that we’ll be leasing. To ensure the lease agreement is equitable, we plan to have a lawyer review it before any commitments are made. Key aspects we’ll be looking for in the lease include:
- Clear definition of responsibility for HVAC repairs, as previously mentioned.
- Lease fees that are fixed for the entirety of the lease term to avoid unexpected increases by the landlord.
- A lease duration of at least five years.
- Specific contingencies in case of a flood (based on our location), detailing the responsibilities and actions.
- Tenant improvement allowances or rent abatement options (a period of free rent at the beginning of the lease).
- The presence of an arbitration clause to provide a structured approach for resolving any potential disputes with the landlord.
These considerations are crucial to ensure that the lease terms align with our business needs and protect our interests.
A Location Near Eateries
Our vision includes providing customers with convenient access to food options before or after their escape room experience. We believe in the mutual benefit of being located near dining establishments, as this not only offers convenience to our customers but also increases our visibility to patrons visiting these eateries. Ideally, securing a location adjacent to an ice cream shop would be fantastic. Or maybe we should take a page out of The Nemesis Club’s book and start our own milkshake bar next door.
Good Phone Service
It’s important for both customers and business operations that our escape room location has reliable cell phone service for all major carriers. Customers might find it frustrating if they’re unable to use their phones during their visit. This is especially problematic in scenarios where QR codes are used for waiver submissions.
Some Walls
While we have a preference for designing our escape rooms to our specific requirements, having some pre-existing walls in place would be very helpful for a new build. It strikes a balance between customization and convenience. Pre-built walls can serve as a useful starting point, reducing the initial construction effort and costs. However, the ability to modify and adapt our spaces to align with our unique room specifications remains an essential factor.
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We are fully aware that before finalizing any lease agreement, it’s prudent to conduct thorough due diligence. This includes:
- Engaging with Other Business Owners/Residents: It’s valuable to talk to current business owners and residents in the area about their experiences. This can provide insights into the landlord’s management style, peak business periods, and any other advantages or challenges they have encountered. We also plan to ask them about the previous renters of the space we’re looking at and why they left.
- Discussing Future Expansion with the Landlord: Having a conversation with the landlord about the potential for future expansion is important. This not only helps in assessing the flexibility and scalability of the space but also in understanding the landlord’s openness to tenant growth.
As our research progresses, we may expand this checklist with additional considerations. However, the most critical learning point we’ve gathered is the importance of having any lease agreement thoroughly reviewed by a real estate lawyer. This ensures that the lease terms are fair, clear, and aligned with our business needs, while also protecting our legal interests.
What have we missed? What are your experiences with renting (or buying) commercial space?