Sunday, July 1, 2012

Real Estate Blockbusters

With the summer here, people across the world are thronging to movie theaters to escape the heart, and of course, enjoy the blockbusters that are playing, which recently included the superhero epic, The Avengers, that grossed more than a billion dollars worldwide and drew in the crowds in Pakistan as well. And with the forthcoming superhero films, namely the Spider-Man reboot and The Dark Knight Rises, the chances are that people will continue heading to the cinemas in full force.
Consequently, the number of beverage and refreshment outlets within cinema lobbies has increased. These spaces continue to be in high demand, primarily because there's nothing better than watching an action packed movie armed with a bag of popcorn pr a generous serving of nachos and cheese.
Here is a detailed look at outlets located on cinema premises:
  • Every theater/multiplex usually has about five to 10 refreshment outlets; these are owned by the cinema and are available for rent by vendors.
  • The covered area of outlets ranges between 15 and 64 square feet.
  • Rental rates range between Rs. 2,500 and 3,000 per square foot. This rate is 10 to 20% higher than rates for similar spaces in malls and commercial areas.
  • Most rental contracts are signed for periods ranging between one and three years and are subject to renewal thereafter. Two to three months' rent is usually required as a security deposit.
  • Maintenance and security are usually part of monthly rental; facilities include provision of water, gas and electricity.
  • Until recently, most cinema outlets only sold snacks and beverages. However, with the cinema going culture picking up, these outlets are now being rented for diverse businesses; an increasing number of movie souvenirs/merchandise stalls are cropping up while other vendors are capitalizing on the young clientele and have set up gaming arcades.