All Things Pro Recording Studio Business(Not Project Studios) - Page 3

Marc L · 17th September 2009

I'm a novice to the recording industry and brand new to GS, but I thought I might have some thoughts that would help.

I've been considering purchasing a recording studio for several years (basically to "buy my way" back into the recording biz). Most studios, if they are listed with a business broker, include a FF&E (furniture, fixtures and equipment) value in their listing. I can tell you that most of the studios I've looked at list their FF&E investment between $200k and $600k, and that is without real estate (all of these studios were leasing space). These are either one-room or two-room studios but mostly cater to local musicians and other small projects. (Not sure if you would call this a "project studio" or just a professional studio for rent.)

FWIW, these studios were typically listed for sale at anywhere from half to one-third of the FF&E price, so that tells you what your investment would be worth after you build it (on paper anyway).

Also, the smaller studios were all losing money (mostly because they weren't being operated full-time -- whether that was by choice or because the business simply wasn't there is unknown) but two of the larger studios I've looked at were making around $100k profit a year.

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17th September 2009	#61
Marc L Gear interested Joined: Sep 2009 Posts: 1	I'm a novice to the recording industry and brand new to GS, but I thought I might have some thoughts that would help. I've been considering purchasing a recording studio for several years (basically to "buy my way" back into the recording biz). Most studios, if they are listed with a business broker, include a FF&E (furniture, fixtures and equipment) value in their listing. I can tell you that most of the studios I've looked at list their FF&E investment between $200k and $600k, and that is without real estate (all of these studios were leasing space). These are either one-room or two-room studios but mostly cater to local musicians and other small projects. (Not sure if you would call this a "project studio" or just a professional studio for rent.) FWIW, these studios were typically listed for sale at anywhere from half to one-third of the FF&E price, so that tells you what your investment would be worth after you build it (on paper anyway). Also, the smaller studios were all losing money (mostly because they weren't being operated full-time -- whether that was by choice or because the business simply wasn't there is unknown) but two of the larger studios I've looked at were making around $100k profit a year.