The cost to build an indoor sports complex will depend on the cost of land in your market and traditional development costs.
California, for example, has the most indoor sports facilities in the US, with more than 4,612 businesses (Source). Building in California can cost as much as $400 per square foot, so consider your location wisely before settling on one.
On average, it will cost you between $150-250 per square foot to build an indoor sports facility. For an indoor aquatics facility, expect to pay $400-600 per square foot. An indoor ice facility is between $200-350/per square ft. For a 100,000-square-foot building, you’re looking at average startup costs of $15-20 million roughly (not including land or site development). However, smaller recreational centers with just 10,000 square feet will cost between $2-3 million to build.
But building costs are just one factor of the business. The average profit margin for an indoor sports facility should be at least 30%, so if you dip below that, you should make adjustments to cut costs (Source).
Now that you know the overall cost and the profit margin, let’s take a closer look at the average costs for steel, brick, constructing a parking lot, site preparation, and other miscellaneous costs.
| Indoor Facility Type | Cost |
|---|---|
| Youth soccer field (14,175 SQFT) | $2,126,250 |
| Basketball court (4700 SQFT) | $1,175,000 |
| Tennis Courts (two) (5,616 ) | $1,200,000 |
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How Big Does an Indoor Sports Facility Need to Be?
Indoor sports facilities are quite big. It will need to be around 50,000 square feet at the low end, depending on what types of sports you will host. Now, we’ll take a look at each cost in more detail
| Item | Cost |
|---|---|
| Real estate | $250,000 |
| Site preparation | $160,000 |
| Construction (Brick) | $1,000,000 |
| Parking lot | $250,000 |
| Total: | $1,660,000 |
Parking Spots & Land Cost
The general rule of thumb is that you need one parking space per 200 square feet of the building. However, for our calculation, we will use one parking space per 600 square feet as a more reasonable estimate. That comes to 64 parking spaces.
The average parking spot is 320 square feet, meaning you will need 20,480 square feet of parking space plus an estimated 10,000 square feet for lane space.
Based on our calculations, your lot size needs to be at least 70,000 square feet. That is about 1.6 acres.
For 1.5 to 2 acres, you should expect to pay around $250,000. Note that this price can vary greatly depending on if you’re building in an urban, suburban, or rural area.
Site Preparation Cost
You can expect to pay about $2 per square foot of land for site preparation costs. So, if you have a lot size measuring 80,000 square feet, the total cost will be $160,000.
Construction Cost
Most indoor sports facilities are made of steel. This is a cost-effective way to build a large structure (i.e., using 40,000 square feet as an estimate).
Using the same features described above as an example, below is an estimate of what you can expect to pay for construction costs:
| Construction Cost | Amount |
|---|---|
| Steel Building | $760,000 |
| Interior finishes | $190,000 |
| Soccer field | $60,000 |
| Basketball court | $35,000 |
| Two tennis courts | $200,000 |
| Locker rooms | $100,000 |
| offices | $25,000 |
| Reception area | $ 40,000 |
| bleachers | $ 37,500 |
| Parking lot | $153,000 |
| Total: | $1,600,500 |
The Total Cost to Construct a Facility with Steel
| Item | Cost |
|---|---|
| Real estate | $250,000 |
| Site preparation | $160,000 |
| Construction (Steel) | $760,000 |
| Parking lot | $250,000 |
| Total: | $1,420,000 |
Now that you know the pros and cons of both steel and brick, how do they compare in terms of price? To Install brick, you’re looking at a cost of roughly $15,000 per 1,000 square feet. For a 40,000 square-foot facility, the total installation costs about be about $600,000. To complete the building, we estimate an additional $400,000 in expenses, for a total of $1 million.
The total cost of building a 40,000 square-foot indoor sports facility with steel would cost about $760,000. Note: this includes the costs of interior features, such as beams and purlins. It also includes the cost of the roof. Because steel is cheaper to maintain, it’s a more affordable option when compared to brick.
The Benefits of Using Steel to Construct Indoor Sports Facility
Albeit the most obvious advantage of using steel is the cost, there are also many other benefits of constructing an indoor sports facility with steel. Some of the benefits of steel include:
- It’s a durable material and does not rot as wood does
- More resistant to the elements and therefore lower insurance costs
- Cheaper to remodel than other types of buildings
- Buildings made with steel maintain their value longer
- Less stress on the building’s foundation because steel is lighter than other materials
- Requires less maintenance than other building materials
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The Different Types of Steel
‘Steel’ is often used as a generic term, but there are various types of steel. Some types of steel are better suited for the interior of buildings, and others are great for the exterior construction of the building. Here’s a look at the most common types of steel used in construction:
Alloy Steel
Alloy steel is a fusion of various types of metal, including copper and aluminum. To qualify as “alloy steel” there have to be additional components mixed in with the natural iron and carbon. Manufacturers often use alloy steel in long components, such as pipes and wires.
If you build an indoor sports facility, you will likely use alloy steel for the interior components of the building or exterior reinforcements.
Carbon Steel
The next commonly used steel is carbon steel. As the name suggests, carbon is the main alloying component of steel (up to 2% by definition). Many business owners prefer to construct buildings with carbon steel because it’s super strong.
However, because it’s so strong, it can be difficult to mend and shape. Compared to alloy steel, carbon steel is more difficult and more expensive to produce.
Stainless Steel
When you think of stainless steel, the first thing that probably comes to mind is appliances. This type of steel is shiny because it consists of 10 to 20% chromium. Albeit often exposed to water, stainless steel does not corrode like other types of metals.
Unlike carbon steel, stainless steel is much more flexible and easier to bend. You may use stainless steel for some of the interior finishes of the gym, but not the exterior construction.
Which Type of Steel Should You Use to Construct Your Indoor Sports Facility?
Out of the three types of steel mentioned above, you should construct your indoor sports facility with carbon steel. This type of steel is the best option because its extremely durable, resistant to the elements, and ductile.
Carbon steel won’t catch on fire like wood, and it can better withstand extreme weather events such as hurricanes and tornadoes. Yes, carbon steel is more expensive than other types of steel because of its durability. It’s also a bit more difficult to use in construction. To cut down the cost, you can use mild steel, which has a lower carbon makeup but still possesses the advantages of run-of-the-mill carbon steel.
A Look at How Steel Compares to Brick
The most common alternative to steel is brick. However, given that an indoor sports facility can measure up to 40,000 square feet, using brick would be extremely expensive.
To illustrate the differences between steel and brick, we will look at the pros and cons of both and then compare the prices.
The Pros and Cons of Brick
Pros
- Visually appealing
- Long-lasting and durable
- Easy to maintain
- Helps increase property value
Cons
- One of the most expensive building materials
- Can deteriorate or grow mold in wet environments
- Not suitable in environments prone to earthquakes
- Requires routine cleaning
The Pros and Cons of Steel
Pros
- Cost-effective
- Resistant to fires and other types of disasters
- Requires less maintenance than brick
- Long-lasting and durable
Cons
- Can corrode, depending on the type of steel
- Can be costly to maintain
- The shape of the structure could shift or warp
- Requires expensive fireproof treatment
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Other Materials You Could Use to Construct an Indoor Sports Facility
You might be wondering – are there any affordable alternatives to steel and bricks? There are a few options: stucco and fiber cement. Even though these are not necessarily more affordable options, we’ll briefly touch on both of the materials:
Stucco
If you’ve ever been to Arizona, Nevada, or California, you’ve probably noticed that well over 80% of the buildings are constructed with stucco. Why do people construct buildings with stucco in warm climates? In a nutshell, stucco helps insulate the inside of the building, keeping it both cold and hot, depending on the outside temperature. This lowers the energy bill for people living in these areas of the country.
Indoor sports facility owners should look at the cost of building with stucco and weigh it against the potential long-term energy savings. For every 1,000 square feet, you should expect to pay about $9,000 to install the stucco. A hypothetical building of 40,000 square feet, would cost $360,000.
Fiber Cement
Although fiber cement is typically used in residential homes, it is an option to look at. Many people like to use fiber cement because it can last for a long time and it’s relatively easy to maintain. It’s also visually appealing and available in a variety of different styles and colors. On average, most types of fiber cement can last up to 50 years.
So, how do the prices of fiber cement stack up to brick, steel, and stucco? If you construct an indoor sports facility with fiber cement, you should expect to pay around $10 per square foot of material installed. Therefore, a 40,000-square-foot facility would cost a total of $400,000.
While both stucco and fiber cement sound cheaper than steel, the costs above do not reflect interior structural costs and the roofing, which is included in the $760,000 price of the steel building.