Posted on July 2, 2016
Real Estate Is Booming In Areas Surrounding Stadiums
It’s no secret that stadiums attract huge numbers of people. But now, those people aren’t just hanging out at the stadium for the day. They want to live in the surrounding areas, too. This phenomenon is occurring all throughout the world.
Take Europe for example. Areas around Europe’s best soccer stadiums were once considered areas to avoid. Now, the property in those areas is becoming increasingly popular. Teams are building new facilities and cities are becoming expensive. Home buyers are looking for affordable prices and finding bargains near stadiums. Many developers feel that stadiums are providing opportunities to create new urban communities.
Sports stadiums in the United States have had a similar effect. Stadium neighborhoods are popping up in Los Angeles, San Francisco, San Diego and Kansas City, Missouri. In fact, many would say these stadiums were catalysts for mixed-use projects. Europe’s stadium neighborhoods are gradually catching up to U.S. stadium neighborhoods. London, in particular, is doing well in this regard. Property prices have been increasing as the English Premier League teams generate more and more money.
Since 2005, property prices surrounding Olympic Stadium in East London have almost doubled. This is largely due to the fact that the stadium is the new home for West Ham United. The 2012 Olympics changed the area from an industrial region to a thriving market. In the past, buyers and renters avoided the areas surrounding the world’s best soccer stadiums because they were seen as older, rundown neighborhoods. Traffic could be extremely tedious and drunken fans could be wandering around the area.
As soccer became a more family-friendly game, the areas around the stadiums have become pleasant places to live. In addition, living around a stadium can be convenient. Stadium neighborhoods tend to be well served by public transit. These areas are usually brimming with restaurants and nightlife. Prices in these areas and usually lower than in other neighborhoods. A stadium neighborhood usually has a unique vibe that reflects the personality of the home team.
In the U.S., certain teams have had difficulty getting cities to build new stadiums. But now the teams are starting to work on these projects themselves, creating not only stadiums but entire cultural hubs surrounding these stadiums. MLB teams have been developing the land surrounding their ballparks in order to generate revenue in a new way. The Atlanta Braves, the Chicago Cubs, and the St. Louis Cardinals are among the MLB teams that are trying to create facilities around their stadiums to make the area more enjoyable for fans.
This is not only occurring in the baseball world. SportsBusiness Journal’s David Broughton created a list of over 30 developments near Stadiums that are somehow connected to team ownership. The Los Angeles Rams, for example, have a proposed stadium project in Inglewood. This project will include 780,000 square feet of office space, 890,000 square feet of retail, a 6,000-seat performance venue, 2,500 new residential units, 25 acres of public parks, and a 300-room hotel.
Hopefully, these developments will have a large impact on the areas surrounding the stadiums. It seems that these new developments will be booming areas for entertainment, but only time will tell if people decide to live in those areas, just as they have around a number of other stadiums throughout the world.