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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.
Typical needs of leisure & entertainment venues:
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:
Town center and malls
As land values are higher in urban areas, facilities will tend to be smaller and more expensive. Examples include:
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:
Investing in leisure and entertainment properties
The main investment opportunities in leisure and entertainment properties are:
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.