7 Ways in which Sport can affect the Commercial Property Market
Sport is big business the world over. Although its influence can be localised and depends on various factors such as: the popularity of the sport, the success of local teams, and the presence of sports facilities and venues in a particular area it can have an impact on the commercial property market.
Here are 7 ways in which sports can affect the UK commercial property market:
- Economic Impact:
Successful sports teams and major sporting events can contribute to the local economy by attracting tourists, generating increased consumer spending, and creating jobs. The premier league alone contributes billions to the UK economy and supports around 94,000 jobs. The takeover of Wrexham FC by Ryan Reynolds and Rob McElhenney saw the city itself transformed.
Economic activity can lead to increased demand for commercial properties, especially in sectors such as hospitality, retail, and entertainment.
- Infrastructure Development:
The construction or renovation of sports stadiums and facilities can drive infrastructure development in an area. This may lead to increased demand for commercial property as businesses look to capitalise on the potential influx of visitors and residents. Again it is reported that the premier league have invested £455 million into their respective local communities.
- Regeneration Projects:
Major sporting events or the presence of successful sports teams can be catalysts for urban regeneration projects. This can result in the redevelopment of commercial areas, leading to increased demand for office spaces, retail outlets, and other commercial properties. The 2022 Commonwealth Games gave the city of Birmingham the driver for a regeneration project.
- Property Values:
Proximity to popular sports venues or the presence of successful sports teams can enhance the desirability of an area, leading to an increase in property values. This, in turn, can impact the commercial property market as investors and businesses seek to capitalise on the rising value of property.
- Retail and Entertainment:
Sports-related activities, such as matchdays, can significantly boost footfall in commercial areas, leading to increased demand for retail and entertainment spaces. Bars, restaurants, and retail outlets may experience higher demand on game days or during sporting events.
- Branding and Sponsorship:
Commercial properties situated near sports venues can attract heightened attention from businesses aiming to leverage branding and sponsorship prospects. This surge in interest often translates to increased demand for office spaces and advertising slots in the proximity of sports facilities. Specifically, commercial properties in the vicinity of football stadiums can reap the benefits of sponsorship and advertising activities, as businesses seek locations with substantial visibility to promote their brands during matches or events. This heightened demand extends to various advertising formats, including large visual billboards and LED screens that offer additional sponsorship space. In smaller towns, businesses may choose to sponsor local sports teams and display their business name on weatherproof signs along the outfield fencing to enhance visibility during events.
- Community Impact:
A thriving football club can contribute to a sense of community and identity in a neighbourhood. This positive community atmosphere may attract businesses looking to establish a presence in an area with a strong and loyal local customer base.
It should be noted that the impact of sports on the commercial property market can vary depending on the specific context and location. While sports can have positive effects, it’s also essential to consider potential challenges such as traffic congestion, noise, and infrastructure strain that may arise in areas hosting major sporting events.
In conclusion, the profound influence of sports on the commercial property market is undeniable, encompassing economic impact, infrastructure development, regeneration projects, property values, and community dynamics. Whether you are seeking commercial properties in proximity to thriving sports venues or aiming to capitalise on the economic ripple effect, NovaLoca provides a comprehensive platform for discovering prime opportunities. Navigate our listings to find the perfect commercial property that aligns with the evolving landscape influenced by the world of sports.