Branded Cities: the Future of Real Estate?
Westgate City Center is 223 acre $850 million development located near Glendale, Arizona. The "mini-city" will include work and recreational projects, as well as 2,200 condos. The development is located near two major sports venues, Jobing.com arena (the home of the Phoenix Coyotes hockey team) and the University of Phoenix stadium, which will be hosting the 2008 Super Bowl. Annual visitation to the city is expected to be around 22 million.
What's really interesting is that the development represents the beginning of a new wave of branding initiatives by major companies. Nissan has signed on as the "Official Automobile of Westgate City Center" and will have a major presence through the city.
The concept is being spearheaded by the Branded Cities division of Clear Channel Outdoor, a company that specializes in billboards and other forms of outside advertising. For its sponsorship dollars, Nissan will get signage on three 100 foot tall Times Square style media boards, product placement at numerous other locations throughout the city, and live events sponsorships. Nissan will also be the sponsor of many sporting events and related broadcasts, such as ESPN pre-game shows.
With 20 to 30 large multimedia boards, the city will very much be a live, branded advertising environment, which Nissan will largely control. So is this the future of real estate? Or just a fad? We think it's very likely this could be a major development, especially as real estate prices continue to escalate. By building tightly controlled mini-city environments and attaching it to corporate sponsorships, economies of scale can be achieved. It may be cheaper to live in places like this, where large companies are pouring money in to get their marketing message across. But do people really want to live in an environment surrounded by advertisements? Only time will tell. We're still rather partial to the idea of having one's own house and back yard.
Choice Group Realty knows Phoenix/Scottsdale real estate. If you're looking for the home of your dreams, call us today!
What's really interesting is that the development represents the beginning of a new wave of branding initiatives by major companies. Nissan has signed on as the "Official Automobile of Westgate City Center" and will have a major presence through the city.
The concept is being spearheaded by the Branded Cities division of Clear Channel Outdoor, a company that specializes in billboards and other forms of outside advertising. For its sponsorship dollars, Nissan will get signage on three 100 foot tall Times Square style media boards, product placement at numerous other locations throughout the city, and live events sponsorships. Nissan will also be the sponsor of many sporting events and related broadcasts, such as ESPN pre-game shows.
With 20 to 30 large multimedia boards, the city will very much be a live, branded advertising environment, which Nissan will largely control. So is this the future of real estate? Or just a fad? We think it's very likely this could be a major development, especially as real estate prices continue to escalate. By building tightly controlled mini-city environments and attaching it to corporate sponsorships, economies of scale can be achieved. It may be cheaper to live in places like this, where large companies are pouring money in to get their marketing message across. But do people really want to live in an environment surrounded by advertisements? Only time will tell. We're still rather partial to the idea of having one's own house and back yard.
Choice Group Realty knows Phoenix/Scottsdale real estate. If you're looking for the home of your dreams, call us today!
Labels: Arizona, branded cities, Glendale, Phoenix, real estate, Scottsdale, Westgate City Center