Playing the Long Game: A Real Estate Perspective on the Moda Center

By Will Gent

The public debate over Portland’s proposed investment in the Moda Center has largely centered on whether taxpayers should contribute $120 million to renovate a professional sports arena.

From a real estate perspective, there’s a better way to frame the issue.

Portland already owns the arena. The better question is whether the City is better off investing in a revenue-producing asset anchored by an NBA franchise, or continuing to own that same asset without one.

That distinction matters because much of the arena’s long-term revenue depends on the Trail Blazers remaining in Portland. In FY 2024–25, Portland received approximately $4.3 million in parking and ticket-fee revenue from Blazers home games. Allocating garage operating and capital expenses pro rata based on Blazers parking revenue yields approximately $3.9 million in net annual revenue. The City also collects annual business license taxes from team operations, while the State’s $365 million contribution is contingent on retaining the NBA franchise. Separately, the City will receive approximately $45 to $50 million in one-time business license taxes from the sale of the team regardless of whether the Blazers remain in Portland. If the team leaves, many of the recurring revenues that support the arena—and much of the associated economic activity—leave with it.

That’s why the comparison isn’t between spending $120 million and spending nothing. It’s between two different futures: one in which the City owns a modernized arena with an NBA anchor tenant, and another in which it owns an aging facility with many of the same maintenance and capital obligations, but significantly fewer revenues to help support them.

None of this says the City should accept any particular deal. The lease terms, revenue sharing, and risk allocations all matter.

The point is simply this: owners don’t evaluate major capital projects by looking only at the price tag. They compare realistic alternatives. What revenue does the investment preserve? What obligations remain if they don’t invest? Which scenario creates more long-term value?

Whether the asset is an office building, an apartment complex, or a publicly owned arena, the analysis is the same. The question isn’t simply what the investment costs. It’s whether the return justifies it—and what happens if you choose not to invest.