Property Futures

Real Estate News, Reviews and Investment

Property Types: Leisure & Entertainment

One person’s fun is another person’s job – leisure and entertainment properties range from libraries to skydiving centres but all have certain needs in common.

China, Guangdong province, Shenzhen city. Shenzhen government building, most recognizable landmark of Shenzhen.

Shenzhen Civic Center

Typical needs of leisure & entertainment venues:

 

  • Parking or public transport for customers and employees
  • Toilets
  • Food or refreshments available on site or nearby
  • Storage for goods or supplies
  • Enough space for the activity in question

Location is critical for leisure properties – while people will often go out of their way to get there, they are more likely to visit a facility if it is easy to access and in a safe, pleasant area. Complimentary facilities are also attractive, for example:

  • Restaurant near a cinema or theater
  • Video arcade in a mall
  • Child-friendly hotels near theme parks

Town center and malls

 

As land values are higher in urban areas, facilities will tend to be smaller and more expensive. Examples include:

  • Cinemas
  • Restaurants
  • Art galleries
  • Bowling alleys
  • Video game arcades
  • Compact sporting facilities such as gyms, tennis courts and swimming pools
  • Libraries
  • Spectator sports such as football, rugby or tennis
  • Museums, monuments and historic buildings
  • Theaters
  • Music concert venues, from punk to opera
  • Parks

Out-of-town venues, leisure parks and the great outdoors

 

Where land values are lower, large-scale facilities, some with low entry costs, can flourish. These include:

  • Spectator sports such as horse racing, dog tracks and motor racing
  • Adventure activities including karting, paint-ball and zipline
  • Horse-riding stables
  • Hiking trails
  • Extreme sports such as mountain climbing, sky diving and bungee jumping
  • Large sporting facilities such as golf courses and ski resorts
  • Large indoor or outdoor play areas for children
  • Nature reserves and national parks
  • Historic buildings and monuments
  • Visitors centers for scientific research and industrial tours
  • Theme parks
  • Water sports including fishing, sailing and scuba diving

Investing in leisure and entertainment properties

 

The main investment opportunities in leisure and entertainment properties are:

  • Commercial rental units
  • Businesses
  • Strategic land

In the first two cases, the value of the property is derived from its use, so a business valuation will be critical.  In the third case, however, the return comes from selling the property after a certain period, and in this case, land valuation will be more important.

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