Railyard business struggle with high rents, lower-than-expected business

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LINCOLN, Neb. (KOLN) - Several current and former Railyard businesses say they're not surprised to see another business out of the area. Rule G closed its doors indefinitely this week.

Some current and former Railyard businesses 10/11 NOW spoke with are Rule G, Joysticks, Jimmy Johns, and Mellow Mushroom.

All of them complained of high rent rates and lower traffic than expected when the Railyard opened in 2013.

Rule G is one of nine Railyard places to close down. Mellow Mushroom's manager Wendy Kinney said, "If you come down to the Railyard now, every block you're on, there's at least two window fronts that don't have anything going on."

Rule G's and Longwell's owner Eric Marsh said rent for Rule G was just over $10,000 a month. Extra costs, which include entertainment and common area maintenance, pushed the monthly rent significantly higher, the owner said.

Kinney said, "The rent down in this area is so much higher down here than in other areas."

Kinney also said most places who are closing likely signed 6-year leases. She expects Mellow Mushroom to leave the Railyard in 2023 unless rent rates go down.

Rule G's owner Eric Marsh said he plans to keep Longwell's open for the time being.

Several businesses said they're unlikely to renew when their leases come up.

TDP Phase One, WRK realty, who owns the Railyard, and its attorney did not get back to use with further comment.