Remember these key takeaways when converting retail space into attractions:
- Be flexible in your layout, strategic in your site selection, and make sure you can access capital.
- The condition of the property is critical. The gold standard has good ceiling heights and flooring with minimal repair and maintenance needed.
- Look at key metrics when evaluating a potential site: annual visitation, annual spend per head, gross revenue, and EBITDA (earnings before interest, taxes, depreciation, and amortization). Look at net revenue more than revenue per square foot.
- Develop win-win relationships with your landlords. In order to ease the process, rely on local business partners who have the know-who and know-how of their corresponding territories.
- Build an attraction to the market, not to the space. Be flexible, but don’t be pushed into less than ideal space.