E-sports Arenas Gaining Popularity as Urban Entertainment Anchors

Posted on April 19, 2018

A recent RCLCO Advisory Report describes the small but growing category of e-sport arenas as holding promise to anchor new and existing large, mixed-use entertainment districts in North America. Electronic sports, or "e-sports" is a broad category covering "competitive multiplayer video games played by professional video game players, for spectators’ enjoyment during regular season and tournament league games." E-sports teams are generally organized based on game title and geographic region, supported by sponsors and advertising, and are moderated by professional e-sports commentators. Spectators can view in person at various arenas or watch livestreaming events over platforms such as Twitch and YouTube. E-sports reached 335 million viewers in 2017, split between occasional viewers (57 percent) and enthusiasts (43 percent), and viewership has increased by "double-digit percentages in recent years, and is forecast to exceed half a billion viewers by 2021."

E-sports arenas could, according to the report, drive adaptive reuse of existing real estate, especially former retail buildings. The majority of existing arenas have been converted from a range of product types including casinos, sound stages and office buildings. Arenas require tall ceilings for video monitors, fast and reliable Wi-Fi, and room for spectators. In-person attendance is relatively low compared to online viewers; events attract hundreds to low thousands. Thus, "smaller venues with a capacity from 500 to 5,000 and ranging in size from 15,000 to 30,000 square feet are ideal in the near term to host regular season games."