Are more stadiums on the way for women's sports teams?

The surge in popularity of women's sports in the US has captivated the public.

The upcoming 2024 Olympic Games in Paris will feature an equal number of male and female athletes for the first time ever. The WNBA's latest season witnessed its highest TV viewership in over two decades, while college sports, highlighted by Iowa basketball star Caitlin Clark’s pursuit of scoring history, are experiencing a surge in viewership as well.

Is there a chance it could result in the development of women’s team sports facilities separate from men's sports?

Kansas City recently celebrated the grand opening of the first-ever stadium dedicated solely to a women's sports franchise, marking a historic milestone. Furthermore, the launch of the Professional Women's Hockey League and the Pro Volleyball Federation underscore the undeniable growth and influence of women's sports.

“Women’s sports have finally captured the attention of not only fans, but also investors,” says Jim Renne, JLL’s National Director for Sports and Entertainment, Project and Development Services. “Although there is still work to be done in terms of the financial and economic model, sports property investors, including professional teams, are showing immense interest. This can be observed in the increasing franchise values across various professional women’s sports, such as soccer and basketball.”

Women's elite sports revenue is projected to reach a $1.28 billion by 2024, a 300% increase from 2021, potentially surpassing $1 billion for the first time, according to Deloitte. The growth is fueling the development and redevelopment of venues and training facilities, such as the CPKC stadium in Kansas City, a $218 million project dedicated solely to a women's professional team.

However, amidst this excitement, the impact of this growth on the surrounding real estate sector remains uncertain, particularly on the retail, residential, and hospitality sectors. Can women's sports drive a trickle-down effect and ignite the transformation of the neighborhood fabric?

“To leverage the real estate value of women's sports, collaboration and investment in the neighborhood fabric are essential for owners, investors, and developers,” Renne says. 

Carefully curating sports facilities that can evolve over time is crucial for the evolution of women's elite sports projects. By envisioning a space that caters to the immediate needs of athletes, fans, and the community, while also allowing for future enhancements and adaptability, a sustainable and thriving ecosystem can be nurtured, Renne says.

Investors, including women-led investment funds, are bullish on the future of women's sports. The Monarch Collective has launched a $100 million fund to invest in women's sports teams and leagues, while Mercury 13 plans to invest $100 million in acquiring women's soccer clubs in Europe and Latin America.

As women's sports gain commercial value, attract investors, and drive the development of sports infrastructure, the long-term impact on the broader real estate sector has yet to be seen. However, one thing remains certain: collaboration and investment into the neighborhood fabric will be crucial to fully leverage the real estate value of this trend.

"It's time to create and develop space that is specifically tailored to the needs of women's elite sports," says Renne. "By striving to create something exceptional, success will naturally follow. Let's build sports facilities that not only meet immediate demands but also lay the foundation for continuous improvement, growth, and innovation."