Vancouver TheatreSports League plans to move to a slightly smaller, 180-seat venue on Granville Island starting April 2.
Troupe director Jay Ono believes the new space will provide new revenue opportunities.
The theatre troupe is spending $1 million to renovate the former Granville Island model train museum. Ono believes the cost will be recouped through a capital campaign.
The Arts Club Theatre Co. gave notice two years ago that it would not renew the sublease Ono held for the New Revue Stage.
The Arts Club will renovate the space and is expecting to show less-established productions and shows that require a more intimate space.
Ono's troupe will perform eight shows at Granville Island's Waterfront Theatre this month.
"Hopefully we'll see enhanced revenue from corporate rentals and from corporate events," he told Business in Vancouver.
Less than 10% of Ono's revenue came from corporate rentals of the old space his troupe occupied for 12 years.
He would like to see that grow to 15% of his revenue by next year.
While revenue from corporate events dipped during the economic downturn, attendance has been steady.
"We're positioned well. We're great value. But, also, people need to get out for an evening and have a good laugh," Ono said.