24 Sep 2018
New report from Legal & General reveals the future of leisure today
A new report from LGIM Real Assets (“Legal & General”) makes the case for a fascinating future for the leisure sector, thanks to persistent consumer demand, a dynamic tenant base and technological innovation. The structural change in household spending habits, towards ‘experiences’ and away from physical possessions, has driven a major transformation in the market, which is expected to gather speed over coming years.
Legal & General’s ‘The Future of Leisure’ report looks at how the leisure sector continues to attract consumers now and will do into the future. Property owners that are willing to be flexible, optimise their stock selection and embrace changing dynamics will be rewarded with long-term, sustainable income and a dynamic tenant base. The report addresses the challenges and opportunities the sector will face, with key findings on how leisure services are evolving, who will be the tenant of the future and what will be their physical space requirements. Insight is provided from interviews with some of Legal & General’s core Leisure Fund tenants, leading market agent Savills and a glimpse into the future from consumer visionary The Future Laboratory.
The report details three key findings:
- The leisure tenants of the future will optimise location, occasion and channels to connect to their customer
- Creating a destination is paramount for future-proofed leisure property
- Consumer will want highly sociable, community-orientated spaces that are hyper connected and age inclusive.
Read the full press release via the link below
This report shows there is a real long-term future for leisure. Our dedicated Leisure Fund has grown to over £600m but as owners of leisure we have had to be bold and ambitious to achieve growth and success is this sector.
Andrew Ferguson, Senior Fund Manager at LGIM Real Assets and Head of the Leisure Fund