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Performance Venue Rental Strategies

November 2024

This article is related to a recently completed custom research project conducted on behalf of an ABA member. Our research team is always delighted to speak with members about tailoring research projects to your organization. To learn more or submit a custom research request, simply contact your member advisor or email us at info@advisoryarts.com.

What is the current market landscape for performance venue utilization across performing arts centers? How do cultural institutions manage and leverage these spaces for earned income? 

These questions, from a performing arts center in the ABA membership, led to an executive benchmark survey analysis and a qualitative research study comprised of interviews with 8 cultural and performing arts organizations with strong venue rental strategies. 

Findings from the research include:

  • As an important source of earned income, organizations are careful to balance commercial and mission-aligned renters: To ensure their financial stewardship, many organizations are strategic with their mix of renters, combining more lucrative commercial partners with non-profit local and artistic renters. Indeed, more lucrative commercial partners that can help support and cover costs of more values-driven programs and events. 

  • Most organizations provide discounts for mission-aligned performance renters: Discounts for local groups and non-profits are almost universally offered for performance rentals. In our benchmark survey, only two organizations did not provide such discounts. While these discounts are widespread, the rates vary between organizations and can also differ based on the type of organization and their relationship with the venue.

  • Organizations consider varied opportunities to increase rental capacity and revenues: To increase rental revenue, organizations are concentrating on growing their for-profit client base, expanding the size and diversity of available rental spaces, strengthening fundraising efforts, and enhancing renter retention. In addition, they are leveraging community connections, programming, and marketing strategies to attract new audiences.

The full report is available to ABA members by clicking below.