The previous deal was also built around a 50/50 cost split between CSEC and the city, but the new deal will mostly be covered by the municipal and provincial governments. But regardless of opinion on the deal itself, we can all agree that this new arena will affect Downtown Calgary real estate. Our team is already seeing the effects of the new arena deal with a slight pick-up in select downtown condo buildings, and we are confident the ripple effect will continue in the coming years should the deal go firm.
City officials said the site of the new arena, 14th Ave and 5th St SE, will include a smaller community rink for amateur games and Flames practices. The surrounding area will be redeveloped, and it will be created into a district versus a single venue or building. "The completed district will attract new people, more events, and greater investment," said Councillor Sonya Sharp.
With this in mind, it's easy to predict the surrounding condo buildings and nearby residential properties will most likely rise in value with this new tourist attraction being so close. Of course, there's always a margin of error with these predictions, and we would be amiss if we didn't leave room for other factors to influence the market, but where there's smoke, there's fire. Where there's a brand new state-of-the-art arena for concerts, shows, sports, etc., there's usually a demand for nearby real estate.
Final thoughts: Mayor Gondek has said there are "no preliminary designs or times for construction" as of now, so there's no way to know how this will ultimately play out. There's even still room for the deal to fall through based on the decisions made by newly elected representatives in the near future. We're not holding our breath just yet, but at the end of the day, most Calgarians know we need a new arena, and we hope the final decision lands on the side of what's best for the community.
