The RPM Indoor Raceway Renovated Wal-Mart Round Rock, TX
The RPM Indoor Raceway, most unfortunately, closed its doors recently. The fact that the raceway closed is quite remarkable actually. The renovation itself was wonderful, and the use for the space was fantastic. When you walked in the raceway, you could imagine yourself saying, "What would it be fun to do in a huge, empty Wal-Mart building?" Driving small cars around it really fast is pretty good answer. Everyone who worked at the RPM Indoor Raceway was very enthusiastic about racing, hoping that the track could help the whole industry of indoor racing to catch on a little more in the United States. Round Rock is the home to a lot of Austin's web and tech industry, and Dell Computers sits right across the street from the former track. Most of the track's business was actually corporate- when a department at Dell wanted to provide a fun, team-building weekend for its employees, it would rent out the raceway. In fact, the raceway was complete with wi-fi internet access, a café, and conference rooms. The RPM also hosted league nights. The track rented the building from a large real estate firm who owned the structure. |
Even though the operation was very successful, the overhead costs of being a single-user in such a large space just caught up with them. The management at the track had come up with some ideas to curb the costs, but in each situation, the building owners and the building itself offered obstacles. Since the raceway was clearly such an alternative use for the space, it was hard to find investors and partners who wanted to venture into sharing the space. The track came up with business ideas that would allow them to split up the structure, offering parts of the building to a climbing wall and a laser-tag operation. But the high overhead and the niche market of the indoor raceway made the proposition risky. Another factor that the raceway brings to light is the fact that most big box retailers, including Wal-Mart and K-Mart, often have various statements written into the leases/deeds at these sites, restricting remotely competitive retailers from moving into the space. These restrictions can last anywhere from 10-100 years after the original retailer leaves the space, so we can guess, for example, that most Wal-Mart buildings will not become a K-Mart within a short time frame. The building that housed the RPM Indoor Raceway is indeed currently under restrictions regarding who may move into the space. For the Indoor Raceway, this was fine-- obviously they are not a competitor with Wal-Mart. in fact, they tried to use these restrictions to their advantage, trying to get together a solid "land banking" deal for the owners so that they could feel secure in the space. The deal would have assured the owners of solid rent from this entertainment complex, and the raceway and their partners would feel secure in the building. Sadly though, it just did not work out at this point for the raceway. |