At your service: booming padel tennis trend sparks commercial property rush as participation skyrockets to one million people

Landlords and property investors are unlocking value from vacant warehouses and industrial units by tapping into the explosive growth of padel.

Russell Mogridge MRICS, a Vail Williams partner who leads the industrial and office agency team for the property consultancy in the south east, says padel operators are now competing directly with traditional industrial and logistics occupiers.

He said: 'Padel is becoming a commercial occupier requirement and we are seeing a surge in enquiries.

'Operators are seeking industrial and warehouse assets because they possess the internal heights and substantial floorplates needed for indoor courts, along with yards for external courts and proximity parking spaces.'

Padel is a racquet sport that combines elements of tennis and squash and is generally played in doubles on an enclosed court, roughly a third of the size of a standard tennis court.

The sport has seen a significant surge in popularity from an original 15,000 players in 2019.

Based on figures by the Lawn Tennis Association, the national governing body of Padel tennis in the UK, there are now one million players, with 1,825 courts across 551 venues.

Russell, who works from Vail Williams’ Portsmouth office at Lakeside North Harbour, added: 'Padel offers landlords an excellent reuse strategy for older industrial buildings, as well as secondary warehousing and unoccupied retail units that might otherwise require heavy capital to attract modern businesses.

'The sector also benefits from a lower power consumption profile than traditional manufacturing.

'Commercial viability remains strong with rental potential linked to court fees.

'For example, court hire charges of approximately £35 per hour in Southampton can support rents around £14 per sq ft whilst prime London venues commanding £100 per hour can exceed £25 per sq ft.'

However, he warns that as the market matures competition will start to intensify, shifting the advantage toward high-quality destination-led venues that offer additional services such as gyms, food outlets, co-working spaces and corporate events.

Russell said: 'We are moving into a phase where success will be determined by the quality of the destination created, not just the number of courts and no doubt a membership model as opposed to the current pay-as-you-go.

'Landlords must conduct rigorous due diligence on operator business models, planning permissions and parking constraints to ensure commercial longevity.'

In an occupancy example through Vail Williams, Smeda Sports opened up a padel and pickleball facility at a 15,418 sq ft warehouse, which includes ground and first-floor offices and 24 car parking spaces, at Unit 1-2, Priory Industrial Park in Christchurch, Dorset.

Also, the Padel Quarter letting at a 20,000 sq ft warehouse at Admiral Park, Portsmouth, which launched a few weeks ago.

Vail Williams provides comprehensive property advice to both landlords and operators navigating site appraisals, planning applications, property valuation, asset management and lease advisories.