Going through a pandemic has only reinforced the wants of Americans to engage in outdoor activities. Commercial real estate developers are seeing that, with some prioritizing them getting added to their properties.
In 2022, outdoor recreation generated nearly $1.1 trillion, according to the U.S. Department of Commerce’s Bureau of Economic Analysis. That represents 2.2 percent of the total GDP and employs 3.2 percent of the national workforce.
Joe Ruiz of Day Pitney, who assists clients involved in matters such as land use, and zoning, mainly focuses on Miami’s Dade County. Right now, he told GlobeSt that there is an “extremely high demand” for outdoor activities in the area.
Particularly, he noted that paddle sports like pickleball are seeing an “explosion.”
“I think a lot of it stems from the pandemic and the need to be outside,” Ruiz said.
Plus, there are other factors. Interest rates and high costs are forcing developers to either build mixed-use properties – or reposition existing ones, according to Ruiz.
“Having a paddle court, a pickleball court, [and] these types of outdoor recreational facilities is a good way to, reposition the property in the interim,” he said.
So what makes Miami and other jurisdictions so successful? It’s the ones that recognize the demand for outdoor recreation and are willing to update their rules and regulations when necessary, according to Ruiz. For example, Miami’s 21 Zoning Code doesn’t permit building height in stories outdoors. But the city is at least starting to look into it.
“This past month, there was a piece of legislation that went before the city’s planning zoning appeals board to amend their city code to allow for the heights required for tennis, pickleball, and paddle court facilities, as previously it wasn’t permitted in their code,” Ruiz said.
“These jurisdictions are recognizing the need and seeing that there are these recreational uses and facilities in the pipeline, and demand for them, and the need to update their code to accommodate for it.”
While success isn’t guaranteed, companies that are likely to see the most success in incorporating outdoor amenities into their projects are mixed-use developers located in “denser urban core areas,” said Ruiz.
He also added that offices are now using outdoor amenities to attract employees, given the work-from-home trend that was exacerbated by the pandemic. While the office market has been recovering from pandemic lows, there has been less of a need for space.
“I think it’s just, developers recognizing there’s a shift in the change in need and the types of amenities that need to be provided with these buildings,” said Ruiz.
But just because companies notice a trend – that doesn’t mean they’ll succeed. Failure could be triggered by providing services that the client doesn’t have interest in.
“If the customer isn’t satisfied with the product you’re building, you’re not going to be able to, find the tenants, or be able to sell the unit,” Ruiz said.
While some might fail, Ruiz doesn’t see the popularity of outdoor amenities disappearing. The pandemic might have increased digital activity – but Americans still want to enjoy life outdoors too.
“They want to provide these types of services in and around the community. So I don’t think it’s going anywhere,” Ruiz said of property developers looking to add outdoor amenities to their projects.
“They’re pretty easy to construct, and so I would assume they’re pretty easy to do take down if someone needs to reposition that space into something else.”