Impact of Super Bowl LVII in Glendale, AZ
The Super Bowl is one of the largest and most anticipated events of the year, with one lucky city chosen as host. Super Bowl LVII is set to take place in Glendale, AZ, on February 12, 2023, in State Farm Stadium. Bringing hundreds of thousands of spectators into the host city, the Super Bowl is a sought-after opportunity for local government and businesses, as the event has an immense impact on local economies. How much does Glendale stand to make from Super Bowl LVI, and what is its overall impact on the city and the Phoenix MSA?
The upcoming event is the fourth Super Bowl Arizona has hosted since the opening of State Farm Stadium. Most recently hosted in 2015, the Super Bowl generated $719.14 million in total revenue, according to research done by Arizona State University. This year’s megaevent is set to bring over $500 million in total revenue to the city. The total economic impact is projected to be lower than in 2015 due to the Pro Bowl taking place in Las Vegas instead of the Super Bowl hometown as it was in previous years. State Farm Stadium, built in 2008, has been utilized outside of its intended purpose of Arizona Cardinals football games regularly since its opening and has paid for its original cost and then some. Stadiums built within the last few years have cost billions of dollars, whereas State Farm Stadium cost $455 million to construct.
In addition to the main event, the Super Bowl sets the stage for hundreds of other events, such as concerts, sponsored parties, and family events. Another one of Phoenix’s largest events is happening the same weekend as Super Bowl, Waste Management Open, a five-day PGA-sponsored golf tournament set to draw over 700,000 spectators, compared to Super Bowl’s 120,000 fans. The tournament, paired with the big game, culminates into one of the metro’s busiest and most lucrative weekends to date.
Glendale Fast Facts
- Population: 254,430
- Unemployment Rate: 2%
- 1% of Residents Rent instead of Own
- Average Household Income: $87,582
Phoenix MSA Fast Facts
- Population: 5,037,323
- Unemployment Rate: 6%
- 6% of Residents Rent instead of Own
- Average Household Income: $107,367
The Valley’s next major event will be hosting the men’s NCAA Final Four tournament in 2024.
Impact on Hospitality
In 2015, Glendale lacked the supply to handle the Super Bowl crowds, encouraging the city to ramp up development for future events. Since then, the city has added five hotels, totaling an additional 600 rooms to accommodate the influx of visitors, and has plans to add another 1,900 rooms by 2024. One of Glendale’s largest hotel projects underway is VAI Resort, which at completion will be Arizona’s largest hotel and entertainment destination featuring 60 acres with over 1,200 rooms, a 360-degree concert stage, 13 restaurants, and multiple pools complete with the largest man-made island in the U.S. Beyond extravagant accommodations, Glendale is also set to open the first-ever Mattel Adventure Park in 2023, just south of State Farm Stadium, which will bring in families from across the U.S. to experience amusement park rides and multi-media attractions and stay nearby. Gaining national exposure over Super Bowl weekend, Glendale will surely entice those visiting now to come back and experience new developments.
On average, hotels raise daily room rates by 200 to 300 percent when the Super Bowl is in their vicinity due to the heightened demand. With occupancy rates higher than usual and rooms going for a higher price tag, hospitality assets bring in much more revenue. AZ Central reported in December 2023 that all hotels near State Farm Stadium in Glendale had zero vacancies, along with tourist hot-spot Scottsdale hotels. On average, two-star and three-star hotel rooms are $400 to $600 per night, with prices increasing to over $900 per night for four and five-star accommodations in January 2023. These high price tags are significantly higher than Glendale’s 12-month average daily rate of $129.81. Short-term rentals also saw an influx in demand, with many locals renting out guest rooms or homes to cash in on the shortage of hotel accommodations. Glendale hospitality sales volume saw its peak in July 2022 with over $33 million trading hands. Q3 and Q4 2022 saw over $51 million in sales volume. As of January 2023, the average sale price per room is $126,000.
Impact on Retail
With big crowds comes big money. Local businesses have been gearing up for the influx of tourists coming into town for the Super Bowl, ordering more inventory, ramping up staffing, adjusting hours, and more. Even those that don’t have a ticket to the big game often fly into the host city to celebrate with fellow fans, spending the majority of their time at local restaurants and bars.
In 2022, football fans set a record for the average amount per person spent at $167.37.
Retail vacancies in Glendale have decreased to 5.3 percent from its 9.4 percent historical average. Westgate Entertainment, State Farm Stadium’s nearest entertainment district, boasts 100 percent occupancy, receiving $15 million in capital over the past four years to enhance tenant and consumer experience. The Valley also just announced plans to demolish Glendale’s vacant shopping center, Metrocenter and redevelop the land into a top-tier mixed-use community – The Villages. Costing an estimated $850 million, the community will offer 2,600 apartments, 150,000 square feet of retail space, and more, according to CoStar Group.
Rent growth in the submarket and throughout Phoenix has performed exceptionally strong, increasing 39 percent over the past 10 years. The strong growth has been a main contributor to investor interest in the Glendale market, making it one of the most traded submarkets in the region. In 2022, transaction activity reached $104 million.
In addition, tourists will increase their shopping budgets, visiting local retailers and shopping centers to kill time between Super Bowl events. Beyond the increase in cash flow to the retail sector, the Super Bowl also provides job opportunities for the entire year leading up to the event. In 2015, the Phoenix metro reported 40,000 job openings in the month of the Super Bowl. National Restaurant News stated some restaurants within Westgate Entertainment hired 30 percent more staff to accommodate the crowds. Experts report that between 2,000- 5,000 jobs are created as part of the Super Bowl event.
Impact on Multifamily
Glendale is experiencing significant population growth, with an expected 2.46 percent population increase between 2020 and 2023, according to Real Capital Analytics. This spurred developers and investors to invest in the submarket’s multifamily sector, specifically near city destinations like Westgate and State Farm Stadium. Westgate Entertainment District recently had four new complexes open nearby, totaling 1,088 units, reported CoStar Group. Transaction activity is strong, with $1.2 billion trading hands over the past 12 months. Many out-of-state investors continue to pour capital into the Phoenix West region, emphasizing bringing single-family rentals onto the market. The Phoenix Business Journal reported in 2021, Glendale permitted 2,033 multifamily units that would eventually house approximately 5,500 residents. The increase in supply is largely due to several large corporations planting operations in the city, bringing thousands of job opportunities with them.
The Glendale submarket recorded historic rent growth in 2021 and 2022 but is experiencing a slowdown in 2023. The current average monthly rent rate is $1,390, which is much more affordable than surrounding metros such as Phoenix, which averages (insert). The increase in interest rates has helped Glendale multifamily keep vacancies on par with the Phoenix MSA, but increased construction is pushing vacancies upward.
The upcoming Super Bowl will positively impact Glendale and the surrounding Phoenix area for years to come as visitors promote recent and upcoming developments and attractions. Although costs are associated with hosting football’s biggest Sunday, the total revenue generated outweighs the city’s investments. Although often temporary, thousands of jobs will be created to stimulate the local economy, and small and large businesses will benefit from the influx of consumers willing and able to spend.
