Golf Courses See a Surge in Demand During COVID-19
September 8, 2020 3 Minute Read
The summer months have brought plenty of opportunities for outdoor physically distanced activities.
From picnics in the park, to bike rides and the occasional patio meal, Canadians have been finding new ways to enjoy time together outdoors as the pandemic continues.
That includes a new demand for outdoor sports, a trend that has buoyed the Canadian golf industry. From seasoned pros to beginner golfers, the country’s golf courses have been packed since early spring.
Hitting the Greens
According to Golf Canada, the number of games played in June was up 17.0% from the same time last year. July saw a 12.0% year-over-year increase, with more than 1.6 million games played, the highest number ever recorded.
“At the outset, we were concerned, like all sports, about the possibility of a complete loss of a year – which would have been devastating to the sport,” said Laurence Applebaum, the CEO of Golf Canada. “In fact, the opposite has occurred.”
The sport, which lends itself naturally to physical distancing, has seen a surge in popularity among regular golfers and first-time enthusiasts.
Stocking Up on Supplies
The trend can also be seen in retail sales. Dick’s Sporting Goods, owner of Golf Galaxy and seller of golf apparel, equipment and accessories, reported a 20.7% quarter-over-quarter rise in in-store sales in the second quarter of the year, even while 15.0% of its stores remained closed.
At the same time, online sales rose a whopping 194.0% quarter-over quarter. While it’s just a picture of one company, the numbers indicate a steep rise in demand for golf equipment during the pandemic.
CBRE Leading the Way
In many places prior to COVID-19, underperforming golf courses had become investment plays with developers looking to repurpose and densify neighbourhoods. CBRE professionals follow the trends in specialty asset classes closely and deliver high-quality, industry-specific solutions to help owners, investors, developers, government agencies, operators, investment banks and financial institutions make informed decisions.
Our industry-leading research and technology platforms provide our professionals with the most comprehensive market data, enabling them to deliver timely and reliable services.
Interest rates are up and commercial property sales have slowed. Lenders are responding to new economic realities by shifting capital away from properties seen to have a higher risk, especially speculative land purchases and certain office assets.
CBRE’s National Investment Team has won Real Estate Deal of the Year at the Best Ottawa Business Awards (BOBAs) for its $277 million sale of 160 Elgin Street, Canada’s biggest office deal of 2023.
Lenders are signaling optimism in real estate as interest rate hikes appear to plateau and the amount of debt capital available to facilitate Canadian real estate transactions is expected to grow modestly in 2024.
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