What Paris, France did for their Olympic Real Estate.

The Real Estate Espresso Podcast

What Paris, France did for their Olympic Real Estate.

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Olympic Real Estate: A New Approach to Hosting the Games

Today, we’ll explore the innovative way that France transformed the Olympic Real Estate component for the Paris Olympics. This episode will discuss the challenges and opportunities surrounding Olympic hosting, the historical burden of building permanent structures, and the new sustainable approaches seen in recent years.

The Transformation of Olympic Infrastructure

Traditionally, hosting the Olympic Games required the construction of permanent buildings that saw little use post-Games. The justification for these huge investments often falls short with revenue often not meeting expectations.

However, new approaches are emerging. The Paris Olympics, for instance, creatively utilized existing landmarks, eliminating the need for monolithic structures that turn into waste after the games. They even had temporary stadiums set up near the Eiffel Tower, combining an immersive tourist experience with efficient infrastructure use.

The Long-Term Legacy of the Olympics

The real ROI of hosting the Olympics lies in its legacy: What remains after the games are over? How was the Athletes Village repurposed? From the Rome Olympic Village of 1960, which was converted into affordable apartments, to the Atlanta Olympic Village that was gifted to Georgia State University as their first on-campus housing, these establishments have profoundly impacted their local communities.

Addressing the Cost Explosion

Unfortunately, nearly all Olympic games go over budget. The real kicker is that the opening date is non-negotiable, limiting cost vs. schedule trade-offs, leading to more money thrown at problems to stay on schedule. The challenge, therefore, lies in aligning original budgets with final costs, which currently stands at an average of 213% more.

Checklist: Hosting the Olympics
1. Evaluate the viability of existing structures and landmarks.
2. Consider the long-term use of new constructions, such as Athletes Villages.
3. Draft concrete plans to manage budget and time overruns.
4. Engage with local communities for planning and post-Games facilities usage.
5. Align original budgets with final costs to ensure financial viability.

Hosting the Olympics is an enormous undertaking. By reconsidering the approach and learning from the past, we can ensure that it leaves a long-lasting, beneficial legacy rather than becoming an economic burden.

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