LOS ANGELS—It is official. By the end of the year, Los Angeles will have two football teams. After decades sans an NFL team—and ardent pleads for one—both the Rams, formerly of Saint Louis, and the Chargers, formerly of San Diego, will call Los Angeles home. Last year, the real estate industry collectively rejoiced over the Rams' move to Los Angeles. After all, The Hollywood Park development, which will house the team's home stadium, is expected to spur major growth in the Inglewood market, along with leasing activity from ancillary real estate in everything from training facilities to retail. For the Chargers, however, the cheers are more muted.
“The overall concept [of two football teams] is great, but I do have some concerns in terms of the sustainability of two teams,” Jonathan Larsen, principal and managing director at Avison Young, tells GlobeSt.com. “The Rams came in strong and had a lot of fans and enthusiasm, but LA fans tend to be fair weathered. The Rams season started out strong with attendance, but as games were lost, there were a lot of empty seats toward the end of the season. The Chargers are coming in with a smaller fan base in LA, a dismal last season, and they are entering the market as the second NFL team.”
The smaller fan base and failing record won't help the Chargers stimulate as much growth as the Rams forecasts, especially because the latter team is getting a new stadium; however, Larsen says that long-term growth will depend on both teams winning and building a loyal fan base. This is especially true for the Hollywood Park stadium's success. “The impact of what the Rams are building in regards to the state-of-the-art stadium, retail, office and hospitality are great for Inglewood and the greater Los Angeles region,” says Larsen. “As typical of large sports venues, it will need to be utilized for other events to draw a more consistent flow of consumer traffic and subsequently new businesses and jobs. The stadium will be the center of the economic draw for the area and if it is successful at keeping attendance up, 'all boats will rise with the tide.' If the teams can be competitive, the long-term impact will be a big success for Inglewood and all of its surrounding businesses.”
For the Chargers, gaining a fervent fan base to stimulate growth will be more difficult. Additionally, the team is going to play at the Stubhub Center in Carson, a smaller stadium on the Cal State San Dominguez Hills Campus. “The Chargers certainly have to fight an uphill battle,” says Larsen. “Overall, the Rams have a good fan base here in L.A., and I don't believe that the Chargers will take fans away from the Rams. The Rams also have a head start in this market, which is certainly an advantage.”
LOS ANGELS—It is official. By the end of the year, Los Angeles will have two football teams. After decades sans an NFL team—and ardent pleads for one—both the Rams, formerly of Saint Louis, and the Chargers, formerly of San Diego, will call Los Angeles home. Last year, the real estate industry collectively rejoiced over the Rams' move to Los Angeles. After all, The Hollywood Park development, which will house the team's home stadium, is expected to spur major growth in the Inglewood market, along with leasing activity from ancillary real estate in everything from training facilities to retail. For the Chargers, however, the cheers are more muted.
“The overall concept [of two football teams] is great, but I do have some concerns in terms of the sustainability of two teams,” Jonathan Larsen, principal and managing director at Avison Young, tells GlobeSt.com. “The Rams came in strong and had a lot of fans and enthusiasm, but LA fans tend to be fair weathered. The Rams season started out strong with attendance, but as games were lost, there were a lot of empty seats toward the end of the season. The Chargers are coming in with a smaller fan base in LA, a dismal last season, and they are entering the market as the second NFL team.”
The smaller fan base and failing record won't help the Chargers stimulate as much growth as the Rams forecasts, especially because the latter team is getting a new stadium; however, Larsen says that long-term growth will depend on both teams winning and building a loyal fan base. This is especially true for the Hollywood Park stadium's success. “The impact of what the Rams are building in regards to the state-of-the-art stadium, retail, office and hospitality are great for Inglewood and the greater Los Angeles region,” says Larsen. “As typical of large sports venues, it will need to be utilized for other events to draw a more consistent flow of consumer traffic and subsequently new businesses and jobs. The stadium will be the center of the economic draw for the area and if it is successful at keeping attendance up, 'all boats will rise with the tide.' If the teams can be competitive, the long-term impact will be a big success for Inglewood and all of its surrounding businesses.”
For the Chargers, gaining a fervent fan base to stimulate growth will be more difficult. Additionally, the team is going to play at the Stubhub Center in Carson, a smaller stadium on the Cal State San Dominguez Hills Campus. “The Chargers certainly have to fight an uphill battle,” says Larsen. “Overall, the Rams have a good fan base here in L.A., and I don't believe that the Chargers will take fans away from the Rams. The Rams also have a head start in this market, which is certainly an advantage.”
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