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Buying Skating Rinks for Sale: A Business Owner's Guide

Published: 09-13-23 Category: Buying

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With over 1,800 ice skating rinks and 2,100 roller skating rinks in the nation, skating is a classic pastime for Americans from all walks of life, providing not only an enjoyable recreational activity but also a potentially profitable special-purpose real estate investment.

Here, we'll cover the basics that every business owner should know before buying skating rinks for sale. We'll discuss the main types of skating rinks, skating rink profitability, marketing your skating rink, the risks involved with rink ownership, and more.

Let's get started.

Types of Skating Rinks

Buying Skating Rinks for Sale: A Business Owner's Guide

Commercial real estate investors and business owners will most likely gravitate toward one of two main types of skating rinks: ice skating rinks and roller skating rinks. Of the two, roller skating rinks tend to be significantly easier to buy and manage, as ice skating rinks require specialized equipment to create ice and keep it frozen throughout the season.

Roller rinks are usually either wood or concrete. Concrete is the more popular option for roller sports, like street hockey or roller derby, while wood rinks are more common for recreational skating.

What's the Target Market for a Skating Rink?

The target markets for skating rinks are usually families and those hosting larger group events. Skating is a relatively child-friendly activity, so rinks tend to be popular recreation spots for parents and children. Many skating rinks also offer group sales and private rentals for birthday parties, work parties, and other group reservations.

Costs of Buying a Skating Rink for Sale

Ice skating and roller skating rinks are very different types of commercial properties, and the costs associated with each can vary significantly. For both types of skating rinks, the ideal financing option would be the SBA 504 loan. 504 loans provide up to $5.5 million that businesses can use to acquire or construct real estate.

We recommend working with a commercial real estate broker to analyze property financials and negotiate any sales contracts. An experienced agent can help you find suitable skating rinks in ideal locations, while you focus on your business plan.

#1 – Roller Skating Rink Costs

Roller rinks are usually the cheapest of the two options because they don't require climate control equipment to keep temperatures low. Prices will vary depending on the state and rink location, but you can expect to pay about $15 to $20 per square foot.

For a 17,000-square-foot rink, that comes out to roughly between $250,000 and $350,000. Skating rinks in more affordable locations might cost as little as $10 per square foot.

#2 – Ice Skating Rink Costs

Buying ice skating rinks for sale is comparatively more expensive. A smaller rink with genuine ice can cost over $500,000, and larger rinks in big facilities can easily cost over $1 million. One of the more expensive parts of an ice skating rink is the refrigeration system that keeps the floor frozen, which can cost over $60,000 on its own.

#3 – Leasing a Skating Rink

If you can't find a suitable facility to buy, you can lease a skating rink to run your business. The main benefit of renting vs. buying is that you don't have to shore up capital to buy the building and can relocate relatively easily if you need to.

How Profitable Can a Skating Rink Be?

Under the right management, roller rinks can turn a decent profit. According to entrepreneurs in the industry, the typical roller rink needs to make at least $35,000 a month to stay on top of operational costs.

The main way that skating rinks make money is by charging entry fees and selling tickets. Other methods of income generation for skating rinks include:

Skate rentals;
Concessions;
Skating lessons;
Private rentals;
Skate accessory sales; and,
Arcades/video games.

A well-run and popular skating rink, after significant time and effort, can potentially pull in over $100,000 in net income a month.

Skating Rinks as Real Estate

From the perspective of commercial property, skating rinks are interesting. Skating rinks are a type of special-purpose real estate that has a specific use, so they can be relatively illiquid. Also, revenues for skating rinks have fallen in recent years.

However, the large floor space present in skating rinks means that owners can potentially explore converting their rink into another type of recreational facility. For example, skating rinks can usually be converted into recreation or community centers.

How Do I Promote My Skating Rink?

As is the case with most businesses nowadays, social media is a fantastic place to promote your skating rink.

Using social media, you can share photos and videos of events at your rink and reach out to/engage with area locals. Other promotion ideas include offering free entry after buying a certain number of tickets and theme nights with different music and lighting.

What Are the Biggest Risks of Operating a Skating Rink?

The same dos and don'ts of buying commercial real estate apply to buying skating rinks for sale, but skating rinks also have some unique considerations and risks that owners will have to manage.

#1 – Seasonal Activity

Depending on the type, skating rinks may operate on a seasonal basis. For example, outdoor ice skating rinks are usually only active during the late fall and winter.

Indoor roller rinks and ice rinks can usually be open year-round. Business owners need to plan for season variance when budgeting.

#2 – Repairs & Maintenance

Managing a rink can require a lot of management and upkeep. Wood rinks need polishing and finishing, and ice rinks need periodic resurfacing. Refrigeration equipment for ice rinks can also be expensive to repair.

#3 – Injury Liability

Skating rinks generally require that customers sign waivers to avoid litigation in case of injury. However, skating rinks can still be held legally liable for injuries, even if the victim signed a waiver, if the rink is unsafe or doesn't abide by local safety regulations.

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