Wow this is quite the issue at hand. Been here before seen it before. My best example of a store is this one in Spokane http://www.thegamershaven.net/gamers_haven.php That is the name of the store I used to own, re-opened by the previous owner, long story. They have a huge gaming space and a small retail space. They can run a full 70+ card tournament and 40 person tabletop tournament at the same time, roughly. They focus on the community and let the sales come into them. They live the philosophy GW tried to teach, build a community and focus on keeping it going. It's important to have other people steering your games as well. Most people follow what the shop owner is playing, but you want a few others to keep interest in more games than you have time for.
To me my biggest question is did the rent go up? Did he get scammed, like a lot do in bham, with a first year is cheap then raise it? Personally I am not sure that railroad gives you the best bang for your buck but I havn't looked at real estate lately.
One thing that could do well would be to look into a beer license, though I know that requires food purchase here in Washington.
I can say that I don't think the LAN space would pan out. I have looked into that many times during my life and the return on investment is hard to make work. Games are expensive for lan's. I can say Reset doesn't do this, they are a console game seller where you can test the games out, (source I use to run the joint).
That is all the ramblings I can come up with now.