Strip Value Skyrocketing, But Is That Good For Las Vegas?
Unless you work on the Strip, chances are you don’t go there very often. The crowds. The traffic jams. The lines.
But the Strip employs tens of thousands, and until tech industries really start to take off in Nevada, it is still the engine that powers the state’s economy.
And the fact is, it is a pretty interesting place. Sex and an arrest on the High Roller grabbed international headlines this week. A high-speed Hollywood crash along the Strip will be featured in the next Bourne Identity movie.
But most importantly, older properties are coming to life and new properties are under construction.
There’s lots going on.
We were curious about the latest happenings there, both in real estate development and more.
John Knott, an executive vice president and global head of gaming for CBRE, a worldwide real estate company said any slowdowns in the capital markets could hurt big projects slated for the Strip like Resorts World.
However, despite the setbacks over cost of construction and capital, Knott believes Resorts World will be built.
Knott's company is handling the sale of the partly finished Fontainebleau resort. He said they have "quality bidders putting the final touches on bids" for the property.
One of the biggest money makers on the Strip now, according to Eli Segall, business reporter for the Las Vegas Sun, are the pharmacies.
Segall said CVS and Walgreens pharmacies along with other chains are doing really well with sales of everything from liquor and beer to souvenirs and snacks.
“The money involved is huge,” he said.
For a long time casinos have been trying to devise how to catch the eye of the new generation of vacationers, the elusive Millenials.
Scott Roeben, who writes a blog called VitalVegas, said he believes the casinos "see an opportunity but don't know how to address it."
Roeben believes the new park that MGM Resorts International opened between New York-New York and the Monte Carlo will be "a very effective way to get a younger crowd in."
He said the Park, which is slated to open in April, is a space that fulfills the ideal of a place to hang out, meet friends, get something to eat and watch live entertainment.
Segall said the shopping, restaurant and entertainment spaces that are cropping up like the Park, the Linq and others along the Strip are all part of an effort by casinos to keep the dollars flowing, even though fewer people are gambling.
John Knott, an executive vice president and global head of gaming for CBRE; Eli Segall, business reporter for the Las Vegas Sun; Scott Roeben, VitalVegas.com