Simplicity Esports and Gaming Company has announced that it has received multiple proposals from commercial property owners to open 8000 to 12,000 sq. ft. esports gaming centers.
The proposals include tenant improvement allowances to offset the buildout cost of each center. The lease proposals do not require a specified fixed rent, but instead rent is calculated as a percentage of gross sales, a signal of the landlords’ belief in the appeal of Simplicity Esports’ gaming center business model, and growth potential.
“The disruption in commercial real estate, as a result of COVID-19, has created more attractive opportunities for us to expand our footprint of gaming centers with a larger floorplan that provides space for social distancing. The average size of existing franchisee-owned gaming centers is 2,500 sq. ft. As we previously announced, we are partnering with Ecolab, Inc. to supply our esports gaming centers with disinfectants, soap, sanitizer, and other cleaning products. Additionally, we are pivoting to more spacious Simplicity Esports owned gaming centers that will position us to provide venues for everyday gaming, as well as larger scale tournaments with accommodations for social distancing guidelines. The success of our online tournaments has also created an opportunity for future in-person finals that will serve as the culmination of multiple weeks of online tournaments, in which the top performing gamers will qualify for the in-person finals,” Roman Franklin, President of Simplicity Esports, said.