REAL ESTATE NEWS

It is the fastest-growing sport in the U.S.

Following the lockdowns during the heights of Covid-19, pickleball has surged in popularity — and real estate developers are taking note of the trend.

According to the Association of Pickleball Professionals, the racket or paddle sport was the fastest-growing in the nation from 2022-2023, at a rate of 51.8 percent. In the United States, 48.3 million pickleball adults played pickleball at least once in the 12 months through March.

"It's about being social and it's about having a physical activity, burning calories, being healthy" said Brett Drogmund, founder of California SMASH, a social club with pickleball that's set to open its first location in El Segundo, California in April.

Across the nation, there are plenty of pickleball sites. Life Time Group Holdings, Inc. calls itself the largest operator of pickleball courts in both the U.S. and Canada, for example. It has more than 700 courts in major markets including New York City.

EXPLORING A NEW CONCEPT

While some of Life Time's portfolio consists of indoor facilities, Drogmund wants to explore that concept more because many pickleball courts are outdoors — and it could ruin the experience if the weather isn't ideal.

"You can't really play if the pickleball is a much lighter ball than tennis," he said.

"So if you even have like a 10-15, mile an hour wind, the ball just doesn't react and play as well as you want to."

An indoor concept allows pickleball to be played 365 times per year.

REGIONS WITH MOST PICKLEBALL COURTS

According to a report from Pickleheads, Sunbelt regions top the list for the most Pickleball locations. Florida is first with 1,071, followed by California at 1,048, and Texas at 755. New York ranks fourth with 586, and North Carolina is tied for fifth with Illinois with 525 a piece.

"If you go and see what they're doing in Florida, they're buying really, inexpensive land," Drogmund said.

"They're building them in the middle of nowhere, and people are driving an hour to those locations to get there."

California Smash wants to take it to a whole other level by acting as a "tent pole location," while focusing on high-population areas — even if it winds up costing more money, according to Drogmund.

"We want to make this a pickleball theme park, so it's like we're paying attention to detail at every angle of our space," he said.

EXPLORING PHASE 2

As California Smash awaits the opening of its first location, the entertainment group is looking into the future. It is in lease negotiations to open two or three other locations in Southern California. But Drogmund hopes that his firm will be able to take its brand to the national level and not be just exclusive to The Golden State.

The next phase for California Smash, whose first location is set to feature a bar and restaurant, as well as DJ tunes, will be figuring out what other type of entertainment works best with its pickleball concept. Particularly, Drogmund wonders if other sports like indoor soccer or volleyball can be added.

PICKLEBALL IS HERE TO STAY

As Drogmund looks ahead, he is optimistic that pickleball will continue to grow, rather than flame out like a fad. He thinks the sport serves as a great amenity across just about any CRE asset class.

"It's only a 30-by-60 footprint, and as long as you add a communal space around it, or public seating or viewing, I think it's a home run," he said.

"I think this is here to stay. It's only growing."

Source: GlobeSt/ALM