Las Vegas vs The Recession - Rematch
It’s no secret that we have officially hit a recession. Some indicators being corporate layoffs, high interest rates, slowing down of sales in the real estate market, etc. Now most of you reading this are very familiar with the market crash of 2008 and how it impacted Las Vegas. While people can’t help but be nervous that something similar will happen to the Vegas economy this time around, I am here to comfort you by saying, I am feeling pretty bullish on Vegas going into 2023 and here's why…
Tourism and Gaming are Back and Stronger Than Ever
People are coming back to Las Vegas and are spending a good amount of money here. See the statistics below provided by Las Vegas Convention and Visitor Authority.
Volume Growth from 2021 to 2022
Visitor Volume: 21.5%
Convention Attendance: 129.4%
Total Hotel Occupancy: 12.9%
Average Daily Room Rate: 23.5%
Total Nights Occupied: 21.7%
Total En/Deplaned Passengers: 34.8%
Total Gaming Revenue – Clark County: 11.4%
Visitor Volumes - January - November 2022
Visitor Volume: 35,522,100
Convention Attendance: 4,771,600
Total Hotel Occupancy: 79.2%
Average Daily Room Rate: $170.45
Total Nights Occupied: 39,940,700
Total En/Deplaned Passengers: 48,296,907
Total Gaming Revenue – Clark County: $11,629,686,000
Record Breaking Gaming
Nevada brought in $13.4 billion by November 2022, which was up over 10.2% from 2021 according to the Nevada Gaming Control Board. It was also reported that gamblers have spent more than $1 billion a month for a consecutive 21 months in Nevada. When thinking of 2023 and if there will be anther record set, odds are looking pretty good.
New Hotels & Casinos Under Construction and Opening in 2023
MSG Sphere - Opening 2023
A first of it’s kind interactive and high-tech venue that is set to open this year. Garth Brooks and U2 are slated to be their headliners to break in the new facility
Fontainebleau - Opening Q4 2023
New Rooms: 3,780
Casino Floor: 173,000 SF
Convention Space: 550,000 SF
Retail: 90,000 SF
Durango Hotel - Opening Q3 2023
New Rooms: 200
Casino Floor: 83,000 SF
Convention Space: 20,000 SF
Retail: TBD
Tilman Fertitta’s New Hotel - Under Construction
New Rooms: 2,400
Casino Floor: TBD
Convention Space: TBD
Retail: TBD
The Dream - Opening 2024
New Rooms: 531
Casino Floor: 173,000 SF
Convention Space: 550,000 SF
Retail: 90,000 SF
Hard Rock - Under Construction (2025)
Renovated Rooms: 3,044
Casino Floor: 90,548 SF
Convention Space: 89,400 SF
Retail: TBD
Las Vegas - The Hottest New Sports Town - Attractions and Athletic Teams
F1 - Las Vegas Grand Prix
Las Vegas will have it’s inaugural race later this November 2023. Las Vegas Grand Prix is expected to draw 170,000 people to the Strip, with an estimated economic impact as high as $500 million.
Allegiant Stadium
Allegiant Stadium was the number one stadium in the world for live events in 2022, according to Billboard's newest rankings. The stadium hosted 24 shows for a total of more than 1 million attendees and a total gross of $182.5 million. In addition to that, this stadium houses the Las Vegas Raiders which brought in roughly $97 million this past 2021-2022 Season.
XFL - The Las Vipers
Dwayne “the Rock” Johnson’s newest minor league Football team will be playing 10 games at Cashman Field this 2023 season.
Las Vegas A’s - MLB Team?
While it has still not been announced if they will be moving to Las Vegas, this also looks quite promising. The A’s have honed in in on two locations on Las Vegas Blvd, one on the North side by Las Vegas Blvd & Sahara and the other on Tropicana & Las Vegas Blvd.
Las Vegas - MLS Stadium
The Oak View Group is planning to build a $3 billion entertainment district on 25 acres that would include a casino, resort, and amphitheater, along with a 850,000 SF arena that is rumored to host the newest MLS team.
Las Vegas Venom - NBA Team?
Talks are still floating around that this may be the home for the newest expansion NBA team. Lebron James and Floyd Mayweather are battling out to see who can obtain the rights to the team. Talks of the stadium’s location are close by Las Vegas Blvd & Warm Springs.
More Companies Moving to Las Vegas
The Office sector has done extremely well this past year with over hundreds of thousands of square feet of new Class A product fully leased before it was even built in the Southwest and Summerlin sub-markets. A notable company that has recently moved their Head Quarters to Las Vegas is Draft Kings, who just opened their office at the brand new UnCommons project in the Southwest.
Obviously, I have to mention the phenomenal year that Las Vegas’ Industrial market had. With over a 7.5 million square feet leased this year alone and product coming online for 2023, there has never been more demand for industrial space than now. Developers and brokers are now asking the municipalities to request that the BLM auction more land so that they may continue to fill the pent up demand in this market. Las Vegas has been identified as the 4th most emerging US industrial market for 2022.
Now after reading all of that, how could you not be excited about the Vegas market too?