Many clubs want to or even need to look at strategies to create reoccurring revenue streams. This is often done thought their property strategy if repurposing surplus land/buildings to alternate uses. But many clubs managers just aren’t sure what uses are the right fit and what may be too high risk.
We asked Anna Porter of Suburbanite Asset Advisory to help us navigate all the options.
Anna put together the following uses that create reoccurring revenue, which ones don’t and if she thinks they are a ‘hit or a miss’.
|Alternate uses||Use/Activity||Does it create reoccurring revenue?||Hit or Miss as a complimentary use for a club?|
|Childcare/Day-care||Yes||More recently becoming oversupplied, future of use is volatile|
|Indoor recreation facilities (ie: gym)||Yes||Hit|
|Yes, if managed commercially||
but WH&S/insurance needs to be considered
|Retail||Yes, unless sold||Volatile & being disrupted by online retailers|
|Shipping containers for F&B/retail||Yes||Hit
Smaller retailers & F&B that can leverage the ‘uber eats’ economy are better positioned
|Food Vans||Yes – minimal and inconsistent||Hit|
|Residential strata units||No||Miss if reoccurring revenue is the goal|
|(Leasehold) retirement and seniors living||Yes||Hit|
|Strata over 55’s units||No||Miss|
|Aged Care||No – many run at a deficit||Miss|
|Community facilities||Not usually||Miss – let council provide these, whilst admirable it is not the clubs responsibility|
|Parks and open space||No||Miss|
|Car parking||Not usually
(some areas it can generate revenue but not often much)
|To be provided as required but not in excess|
“The hit’s and misses are based on a number of considerations, including market acceptance, future of that sector, viability compared to volatility and how complimentary the use is to a club,” says Porter. “Obviously this will vary somewhat from location to location, or club to club depending on their individual strategy, but this is a guide worth considering before jumping into a project”.
Anna acknowledges that all developments will need some of these facilities that don’t create reoccurring revenue such as parking, but if it isn’t a reoccurring revenue asset then the club should consider only having the minimum required of this use.