The Impact of Sports Venue Construction on Neighboring Commercial Real Estate

Visionary. It’s not the first adjective one thinks of for a professional sports franchise when it builds a new stadium or arena, but clubs have a history of creating destination retail and entertainment venues from scratch. These new facilities are constructed where land is available, and that is usually not in the already-activated areas of town. Lower prices for site assemblage are a priority for the club and its investor partners, while minimizing the displacement of businesses and residents is a main objective of the public sector (along with enhancing tax revenues). Most of the time, a new stadium or arena is built in an underutilized part of a metro area that has few demand drivers to spark organic revitalization. Sometimes that is in a suburban or exurban location; recently, stadium and arena construction is following the pattern set by residents, and is migrating downtown.

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