Hockey fans cheered the parade of Oilers alumni and current players last week at Rexall Place, saving their most thunderous applause for the one and only #99 during the arena’s farewell game. With this September’s move to the new $480 million arena, local property owners will suddenly become hockey fans if they aren’t already.
A brand new barn is good for the neighbourhood economy and for property values according to a recent report called The Impact of Stadium Construction on Real Estate Values, researched and published by the Real Estate Investment Network. The report examined the ins and outs, pros and cons of plunking a major sports stadium into an urban neighbourhood with some very interest results.
In terms of housing around a new facility, the report found that there’s a positive impact on real estate values within a 5km radius of the stadium or rink. The impact is even greater when the public space, local retail and commercial structures and entertainment district are architecturally blended with the design of the stadium or rink. This is something that Rogers Place and Edmonton’s Ice District have worked hard to achieve.
If the local municipality increases property tax because of the new facility, that’s a bad thing. Something for Calgary to consider when brainstorming the Flames new rink.
Depending on the distance from the facility, the type of residential development and the various parking options there are, house prices can go up anywhere from three to 15%. But conversely, will drop about 1.75% for every 10% distance drop away. Walkability to and from the sports venue is key.
Even if a new stadium isn’t in the inner-city but in more suburban environments, house prices will rise. Not as dramatically as when a whole complex has been constructed and absorbed downtown, but still to the positive.
On the down side, the increased traffic, pedestrian noise, lack of parking during events and rowdy sports fans can be factors to quality of life in certain neighbourhoods.
Overall, sports infrastructure does contribute to the local economy and now there’s empirical evidence that property values can rise as well.
Experts say sports entertainment developments provide the same sort of impact to the city as transit infrastructure improvements, boosting real estate values both real and perceived.
Rogers Place is in the heart of Edmonton and has great links to public transportation. It’s part of a thoughtful plan which includes an entertainment area and lots of amenities. It will have a capacity for hockey games of more than 18,000 fans and for concerts, more than 20,000. Also:
- A smaller, community arena for varsity teams from MacEwan University to be used as a practice facility for the Oilers and junior teams. It will also be available to rent.
- A new office tower called Edmonton Civic Tower. It boasts 27 floors to be used by the City of Edmonton administration.
- A 60,000 square-foot casino with dining and live entertainment
- An LRT Station
- Oilers Entertainment Group headquarters.
- Residential units and a four-star hotel