DiceMan
05-03-2008, 07:31 PM
I live in NJ. The FLGSs are dropping like flies. (Along with many comic shops.) The ones that aren't gone are on the edge. (There may be a few exceptions that I can count on one hand...but they are 20+ year local institutions. I strongly suspect these places have found remarkable rent situations, or, possibly remarkable rent situations have evolved for them slowly over the years -- good negotiating, grandfathered rates, excellent relations with Chamber of Commerce, etc.)
Now realize, this is the most densely populated state in the union. You would expect foot traffic from a half-decent location to be tremendous, but...the real estate premium in this megalopolis is challenging enough just for a mainstream store...forget about niche markets, even a "combined niche market" like comics/minis/cards/rpgs/boardgames -- they don't have a prayer right now.
As I said, the huge crop of stores that bloomed here in the 90s are almost all gone, a few intrepid souls who started up post 9-11 (a directly impacting event here in NJ) remain (between bouts of layoffs and week-long "store closings"). The only solid performers are stores est. pre-1995 (maybe even pre-'85).
And I truly believe location trumps all other startup considerations. If you can't somehow finagle a breathtakingly lower-than-market-rate rent in a gem of a location -- and here's the big kicker: a location that has tremendous foot-traffic (walk-in business!) -- you are sunk.
Big Malls: Rent way too high. Even so, wrong kind of foot traffic. The kids that hang at the malls in NJ are the kind of kids that gamer-kids loathe.
(BIG) Strip Malls on highways: (Where NJ is KING...check out Route 22 or similar, if you don't believe) Better, but still spotty for foot traffic and walk-ins. People boomerang from their cars and back again without taking a lateral perambulation.
(small) Strip Malls in town centers: Many newer towns have less centralized shopping districts, splitting them up into min-centers usually comprised of small strip malls that are the worst of both worlds: little lateral perambulation AND far fewer patrons than out on a major Route or Highway.
Local town centers: The Best. Usually found in older towns. But the inverse is not always true: not all older town have them. Those towns that have architected a town square conducive to walking and window shopping (much has to do with the layout of parking) -- these are the best. But you are caught in a paradox (at least in NJ) -- towns with enough foot traffic have unapproachable rents. Towns far enough out to have viable rents, don't have enough foot traffic. Plus, you have to consider access from farther afield (especially if you have a game room/minis tables) -- near an interstate, or better yet, an Interstate interchange. (Tougher in some regions, but in NJ, the whole north and eastern flanks of the state are Interstate interchanges.) Excellent...but oopsy, rents are still up where the air is thin. And local chambers of commerce can be ball busters on a good day, let alone if they decide D&D is Satan's recruiting tool.
And in conclusion:
Right now, on the cusp of what looks to be a serious recession (at least here in northern NJ, where the Financial Sector is a major employer), with rents still astronomically high (falling, but you know, the falling started in the ionosphere!), this is *NOT*THE*TIME. If you are too fangeekish and immature to WAIT, bankruptcy will apprise you of your immaturity forthwith, posthaste.
Maybe in a year or two's time (one hopes the recession will be this short), you'll be able to find a surprisingly low rent in a comfortable local store in a town that has a great town center with plenty of foot traffic and where the town itself is in a densely populated area and near a major Interstate interchange. Patience - tremendous patience - but what's two to five years searching if it could pay off with something that could carry you 20+ years?
Now realize, this is the most densely populated state in the union. You would expect foot traffic from a half-decent location to be tremendous, but...the real estate premium in this megalopolis is challenging enough just for a mainstream store...forget about niche markets, even a "combined niche market" like comics/minis/cards/rpgs/boardgames -- they don't have a prayer right now.
As I said, the huge crop of stores that bloomed here in the 90s are almost all gone, a few intrepid souls who started up post 9-11 (a directly impacting event here in NJ) remain (between bouts of layoffs and week-long "store closings"). The only solid performers are stores est. pre-1995 (maybe even pre-'85).
And I truly believe location trumps all other startup considerations. If you can't somehow finagle a breathtakingly lower-than-market-rate rent in a gem of a location -- and here's the big kicker: a location that has tremendous foot-traffic (walk-in business!) -- you are sunk.
Big Malls: Rent way too high. Even so, wrong kind of foot traffic. The kids that hang at the malls in NJ are the kind of kids that gamer-kids loathe.
(BIG) Strip Malls on highways: (Where NJ is KING...check out Route 22 or similar, if you don't believe) Better, but still spotty for foot traffic and walk-ins. People boomerang from their cars and back again without taking a lateral perambulation.
(small) Strip Malls in town centers: Many newer towns have less centralized shopping districts, splitting them up into min-centers usually comprised of small strip malls that are the worst of both worlds: little lateral perambulation AND far fewer patrons than out on a major Route or Highway.
Local town centers: The Best. Usually found in older towns. But the inverse is not always true: not all older town have them. Those towns that have architected a town square conducive to walking and window shopping (much has to do with the layout of parking) -- these are the best. But you are caught in a paradox (at least in NJ) -- towns with enough foot traffic have unapproachable rents. Towns far enough out to have viable rents, don't have enough foot traffic. Plus, you have to consider access from farther afield (especially if you have a game room/minis tables) -- near an interstate, or better yet, an Interstate interchange. (Tougher in some regions, but in NJ, the whole north and eastern flanks of the state are Interstate interchanges.) Excellent...but oopsy, rents are still up where the air is thin. And local chambers of commerce can be ball busters on a good day, let alone if they decide D&D is Satan's recruiting tool.
And in conclusion:
Right now, on the cusp of what looks to be a serious recession (at least here in northern NJ, where the Financial Sector is a major employer), with rents still astronomically high (falling, but you know, the falling started in the ionosphere!), this is *NOT*THE*TIME. If you are too fangeekish and immature to WAIT, bankruptcy will apprise you of your immaturity forthwith, posthaste.
Maybe in a year or two's time (one hopes the recession will be this short), you'll be able to find a surprisingly low rent in a comfortable local store in a town that has a great town center with plenty of foot traffic and where the town itself is in a densely populated area and near a major Interstate interchange. Patience - tremendous patience - but what's two to five years searching if it could pay off with something that could carry you 20+ years?