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The Coachella Valley is rapidly becoming an entertainment and retail hub in Southern California. Like many desert communities, the Coachella Valley has been a popular resort and snowbird destination; however, the growth of the Coachella Music Festival, as well as a handful of other music festivals, in the last five years has fueled significant growth and tourism. Now, new hotels are arriving to the market and retail owners are investing capital to upgrade and reposition their properties for the new demand segment.

“The Coachella Valley is emerging as a significant Southern California entertainment hub,” Rich Walter, EVP of the investment properties group at SRS Real Estate Partners, tells GlobeSt.com. “The Valley has gained its most recent notoriety due to major music festivals that draw talent from around the globe. Since 2013 the attendance at Coachella Music Festival has grown significantly from 180,000 people to more than 250,000 in 2017. This music festival brings in over $110 million of revenue to the concert but brings even more economic benefit to the Valley’s commercial and hospitality operators. Stagecoach is the largest country music festival in the world and attracted over 75,000 people to the Valley in 2018 alone. Desert Trip was another major festival attracting record crowds to the Valley.”

The music festivals have fueled commercial real estate activity. New hotel development is happening all along Highway 111 in the Coachella Valley and in major cities from Palm Springs to La Quinta. Retailers are also looking for ways to cater to the younger demographic coming into the market. “Property owners and investors are opening up small venues at their properties to attract all ages, not just seniors.  Many restaurants are “hubbed” together and offer various experiences and the properties offer smaller concert venues,” explains Walter.  “Property owners continue to expand on-site entertainment elements for young children so that their parents can locate complementary activities for them.  Retail space can and is being utilized to accommodate “drop in” childcare with numerous activities for the children while their parents enjoy the daily or evening entertainment.”

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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