Our ongoing tracking of golf course redevelopment is coming soon, starting in January 2021. The potential for reconfiguration and/or adaptive re-use of golf assets is increasingly common, as course owners seek to redevelop to achieve highest-and-best-use of their properties. The same investor focus is apparent in other popular real estate asset classes including office buildings, hotels, and shopping centers.
Golf courses are often situated within attractive residential communities, with reasonable roadway access and ingress/egress for feasible re-purposing as residential projects. Some courses such as the Riverwalk Golf Course in San Diego, are well-located within the regions in a way that can support substantial mixed-use redevelopment. Hines has proposed a mega redevelopment project at the Riverwalk site that could see in excess of $1 billion in new development.
The overbuilding of golf courses and declining golf participation through 2019 has caused the reconsideration of golf properties. A major report published in 2015 indicated that more than 800 golf courses had closed across the U.S. in the past decade. A major part of the closures was the overbuilding that had occurred between 1998 and 2006, and the economic recession of 2008.
Until 2020 and the impact of Covid-19, the trend towards declining golf participation and more closed golf courses, had continued. New generations, particularly millennials, just haven’t embraced golf as have generations past. We shall see what the lasting impact of Covid-19 may be, and the interest that has stirred in golf as a healthy and safely-distanced outdoor recreation activity.
The Latest Golf Course Redevelopment Projects
We track major real estate development and redevelopment activity, as part of our ongoing research to support client consulting projects in connection with golf course redevelopment. Starting in January 2021 we will publish updates to this list of golf course redevelopment in process. We welcome your suggestions and ideas. Thanks for that!