Side Hustleslow risk
Turn Dead Mall Spaces Into Pickleball Courts for $3K
Mall owners lease dead anchor spaces for $2-4/sqft while pickleball courts charge $25-35/hour. Capture the fastest-growing sport with minimal overhead.
Last verified: 4/8/2026
Mall owners lease dead anchor spaces for $2-4/sqft while pickleball courts charge $25-35/hour. Capture the fastest-growing sport with minimal overhead.
Capital Required
$0–$500
Time Commitment
5-20 hrs/week
Skill Level
beginner
Risk Level
low
Mall owners across America are sitting on millions of square feet of dead retail space while pickleball, the fastest-growing sport in the US, faces a severe court shortage. The math is simple: dead department store spaces lease for $2-4 per square foot annually, while indoor pickleball courts generate $25-35 per hour in most markets.
This isn't about opening a traditional sports facility. It's about exploiting a specific arbitrage between desperate mall owners and the explosive demand for pickleball courts. Dead malls offer everything you need: high ceilings, HVAC, parking, and landlords willing to negotiate creative lease terms just to avoid empty space.
The Economics Are Compelling
A typical dead anchor store (15,000-20,000 sq ft) can accommodate 8-12 pickleball courts. Your startup costs break down to:
Revenue potential is substantial. Most markets support $25-35/hour court fees. With 8 courts running 60% capacity during peak hours (6am-10am, 6pm-10pm weekdays, 8am-8pm weekends), you're looking at:
Your main overhead is rent. A 15,000 sq ft space at $3/sq ft annually costs $3,750/month. Add utilities ($800-1,200), basic insurance ($400-600), and minimal staffing for peak hours ($2,000-3,000), and you're operating with 70-80% gross margins.
Why This Window Exists Right Now
Three trends are creating this arbitrage opportunity:
First, mall vacancy rates hit record highs post-COVID. Mall owners are desperate for any tenant who can cover basic expenses and bring foot traffic. Many will negotiate percentage rent deals or rent-free periods just to avoid empty space.
Second, pickleball participation exploded from 3.5 million players in 2019 to 8.9 million in 2023. The sport attracts affluent, middle-aged players who spend money and drive regularly – exactly what mall owners want.
Third, traditional pickleball facility development is expensive and slow. Purpose-built facilities cost $200-400 per square foot and require zoning approvals, construction permits, and 12-18 month timelines. Mall spaces let you open in 30-60 days.
Finding the Right Mall Space
Not every dead mall works. You need specific criteria:
Ceiling height is crucial. Pickleball requires 20+ feet clearance. Former department stores usually work; former jewelry stores don't. Ask about ceiling height before touring.
Parking matters more than foot traffic. Pickleball players drive to courts and stay 1-2 hours. You need 50+ spots within 100 yards of your entrance.
Demographics trump location. Look for suburban malls in areas with household incomes above $60,000 and residents aged 40-70. Urban malls in young/low-income areas won't work regardless of rent.
Landlord desperation is key. Target malls with 40%+ vacancy or recent anchor departures. These landlords will negotiate percentage rent, tenant improvement allowances, or rent-free periods.
Revenue Beyond Court Fees
Smart operators generate 30-40% of revenue from non-court sources:
The average player spends $150-200 annually on equipment beyond court fees. Capture even 20% of that and you're adding $30-40 per regular customer annually.
Common Mistakes to Avoid
Don't underestimate sound issues. Pickleball is loud, and mall spaces share walls with other tenants. Budget $2,000-4,000 for acoustic panels or risk noise complaints and lease violations.
Avoid complicated lease structures. Some mall owners propose percentage rent or revenue sharing. Stick to fixed rent with reasonable annual increases. Your revenue is predictable; their demands often aren't.
Don't skimp on flooring. Cheap sport tiles crack and create injury liability. Invest in commercial-grade modular tiles designed for indoor courts. The $200-400 per court premium pays for itself in reduced maintenance and insurance claims.
Ignore walk-in traffic initially. Unlike retail stores, pickleball courts succeed through repeat customers and word-of-mouth. Focus on building a core group of 100-200 regular players rather than optimizing for mall visibility.
Don't over-staff. Peak hours need coverage, but most time slots can run self-service with online booking and keypad entry. Two part-time staff members can handle 90% of operational needs.
The Competition Landscape
Traditional competitors are purpose-built facilities and country clubs. Purpose-built facilities offer better playing conditions but cost 3-5x more to develop and take 12-18 months to open. Country clubs have courts but restrict access to members and often charge $50-80/hour.
Your edge is accessibility and price point. Mall courts serve the 85% of players who want convenient, affordable access without country club fees or membership requirements.
Other mall-based operators are rare but growing. Expect competition within 2-3 years as the model proves successful. Your defense is building customer loyalty through leagues, lessons, and community events.
Start This Week: Three Concrete Steps
Scout dead anchor spaces this weekend. Drive to 3-5 suburban malls in your area. Look for former department stores with "For Lease" signs. Take photos of ceiling height, parking proximity, and neighboring tenants. Note lease contact information.
Call three commercial real estate brokers Monday morning. Ask specifically about dead anchor spaces with 20+ foot ceilings, 15,000+ square feet, and desperate landlords. Mention you're cash-ready for quick occupancy.
Visit two existing pickleball facilities by Friday. Count players during peak hours, ask about court fees, observe equipment sales, and note what works/doesn't work about their setup. This research costs nothing and prevents expensive mistakes.
Execution Timeline and Milestones
Week 1-2: Market Research and Site Selection
Week 3-4: Lease Negotiation
Week 5-6: Build-Out
Week 7-8: Launch
Risk Factors and Mitigation
The biggest risk is lease stability. Malls can change ownership or redevelopment plans. Negotiate lease assignment rights and avoid personal guarantees exceeding 2x monthly rent.
Insurance costs vary dramatically. Shop multiple carriers and emphasize safety protocols. Expect $3,000-6,000 annually for proper coverage including participant liability.
Seasonal demand fluctuates in some markets. Plan for 20-30% revenue drops during peak outdoor months (May-September in most climates). Build cash reserves or develop summer programming like camps and clinics.
Equipment theft is surprisingly common. Install security cameras and limit equipment displays. Most losses come from paddle theft rather than court damage.
Why This Won't Last Forever
This arbitrage exists because pickleball growth outpaced facility development, but that gap is closing. Major sports chains are entering the market, and purpose-built facilities are becoming easier to finance.
Mall redevelopment will eventually reduce available space. Many dead malls will become mixed-use developments, apartments, or industrial space.
The sweet spot is the next 2-3 years. Early movers can establish customer bases and negotiate long-term leases before competition intensifies and rent prices rise.
Scaling and Exit Strategy
Successful operators expand to 2-3 locations within 18 months. Each additional location reduces per-unit overhead and creates economies of scale for equipment purchasing and marketing.
Exit options include selling to larger sports facility operators, franchising the model, or converting successful locations to purpose-built facilities as leases expire.
The best operators build community around the sport rather than just renting court time. Focus on leagues, tournaments, lessons, and social events that create customer loyalty beyond just facility access.
FAQs
Q: What if the mall owner wants percentage rent instead of fixed rent? A: Avoid percentage rent initially. Your revenue is unpredictable in year one, and percentage deals often include minimum base rents that eliminate savings. Negotiate fixed rent with annual increases tied to CPI. Consider percentage deals only after proving consistent revenue streams.
Q: How much insurance do I need and what does it cost? A: You need general liability ($1-2M), property insurance for equipment, and participant accident coverage. Expect $3,000-6,000 annually. Some insurers offer sports facility packages. Require players to sign waivers but don't rely on them for protection.
Q: Can I run this as a completely automated facility? A: Partially. Online booking, keypad entry, and security cameras handle most operations. But you need staff coverage during peak hours for safety, equipment issues, and customer service. Budget for 20-30 hours weekly of part-time staffing.
Q: What happens if pickleball popularity declines? A: The sport's demographics suggest sustained growth through 2030. But plan exit strategies. Court spaces can convert to other recreational uses (badminton, volleyball, indoor soccer). Modular flooring and equipment retain resale value.
Q: How do I compete with free outdoor courts? A: Weather, convenience, and community. Indoor courts offer year-round play, consistent surface conditions, and controlled environment. Focus on leagues, lessons, and social events that create community beyond just court access. Most serious players gladly pay $25-35/hour for reliable conditions.
This article is for educational purposes only and does not constitute financial or business advice. Always consult with qualified professionals before making investment decisions.
Scout dead anchor spaces this weekend at 3-5 suburban malls, photographing ceiling heights and noting lease contact information
Call commercial real estate brokers Monday morning asking specifically about 15,000+ sq ft anchor spaces with 20+ foot ceilings
Visit existing pickleball facilities to count peak hour players, observe pricing, and note operational best practices
Submit letters of intent to top 2-3 locations with 30-60 day rent-free periods and tenant improvement allowances
Order sport tiles, nets, and equipment while negotiating final lease terms and securing recreational use permits
Complete build-out with sound dampening and lighting, set up online booking system, and launch with soft opening for feedback
Avoid percentage rent initially. Your revenue is unpredictable in year one, and percentage deals often include minimum base rents that eliminate savings. Negotiate fixed rent with annual increases tied to CPI. Consider percentage deals only after proving consistent revenue streams.
You need general liability ($1-2M), property insurance for equipment, and participant accident coverage. Expect $3,000-6,000 annually. Some insurers offer sports facility packages. Require players to sign waivers but don't rely on them for protection.
Partially. Online booking, keypad entry, and security cameras handle most operations. But you need staff coverage during peak hours for safety, equipment issues, and customer service. Budget for 20-30 hours weekly of part-time staffing.
The sport's demographics suggest sustained growth through 2030. But plan exit strategies. Court spaces can convert to other recreational uses (badminton, volleyball, indoor soccer). Modular flooring and equipment retain resale value.
Weather, convenience, and community. Indoor courts offer year-round play, consistent surface conditions, and controlled environment. Focus on leagues, lessons, and social events that create community beyond just court access. Most serious players gladly pay $25-35/hour for reliable conditions.