Proposed Digital Entertainment Venue
CSL was recently retained by private sector client to conduct an analysis of the potential economic impact, financial operations, adjacent commercial real estate opportunities, and site/location success factors for a proposed Digital Entertainment Venue (DEV) in the context of a planned commercial development in the Greater Los Angeles area.
The proposed DEV would be a first of its kind facility that would leverage cutting technology and production capabilities to serve as both a live event venue and a first-rate production and broadcast studio that could be used by major video game publishers. In addition to a 40,000-square foot theater room, the development would include a 10,000-square foot LAN Center, six training rooms, two production studios, and a number of ancillary support spaces.
Using GIS data and past experience in the Los Angeles market, CSL was able to monitor the amount of time and money spent on gaming by the populations in each of its census tracts, as well as identify different psychographic segments of the area population that would likely be interested in attending esports events. These data helped generate supportable event and attendance projections, which indicated a gradual growth from 40,000 to nearly 90,000 annual venue attendees between the first and fifth year of DEV operations.
Pairing these findings with our in-house data on customer spending at live events, CSL was able to produce an economic impact modeling analysis that forecasted the direct, indirect and induced spending levels associated with DEV venue operations and event activity, in addition to associated earnings/wages and job creation. The estimated $2.6 million that would be spent on nearby restaurants and $2.1 million that would be spent on nearby retail as a result of DEV event activity helped inform a preliminary master plan of street level commercial spaces near the venue. Using Los Angeles market data and our industry expertise, CSL was able to suggest occupants for these spaces, including brands such as Chipotle, Apple, Amazon, Microsoft, WeWork, YouTube Space, Intel, and Alienware. Potential brands for an adjacent hotel property were also considered, including Millennial-focused flags such as Moxy (Marriott), Canopy (Hilton), and The Graduate Hotels.
CSL also advised on the criteria that should be considered for the venue’s site selection process. As a result, key geo-based elements that will be weighed include Millennial and Gen Z populations, annual video game participation and purchasing habits, and Twitch viewership levels.