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The creation of whole neighborhoods anchored by new sports stadiums or entertainment arenas is emerging as a real-estate asset class all its own, The Wall Street Journal writes.
Stadiums serve as the foundation, surrounded by hotels, shopping centers, office towers, residential buildings and entertainment venues.
Washington, D.C., is the latest to turn to this playbook. The Washington Commanders said last week they reached a $3.8 billion agreement for a new 65,000-seat football stadium project, one of the most expensive of these proposals in the U.S. The stadium would be part of a 180-acre development proposal that includes new housing, hotels, restaurants, retail and parks, though the financing for those pieces hasn’t yet been figured out.
These stadium-based neighborhoods reflect an evolving sports business model, too. It is no longer enough to sell tickets and book television deals. Teams also want expansive real-estate portfolios that generate revenue. Increasingly, sports teams see their arenas as power centers for the micro-economies that surround them.
Many more of these megaprojects are in the works. Plans to renovate or newly build at least 39 major sports venues are currently underway across North America, from New York to Las Vegas, according to sports agency Klutch Sports Group.
LSU is planning its own $400 million arena to be constructed. Once operational, the arena would host sporting events for LSU as well as entertainment and music events for the Capital Region.
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