Steve Canty, Director
GRS | Corteq
(858) 433-0441
[email protected]
So, the NFL’s Oakland Raiders, which did a stint of time in Los Angeles from 1982 to 1994, are now the Las Vegas Raiders.
This will surely have a major impact on the commercial real estate market in the Las Vegas metro area. Specifically, there is talk about how the Russell Road neighborhood in Vegas will be impacted by the new stadium being built.
The 63-acre plot, where the new Las Vegas Raiders stadium is to be built, has not yet reportedly been purchased by the parties involved in the deal. But a 65,000-seat NFL stadium in one of the largest tourist markets in the country will definitely boost commercial real estate in that part of the metro area.
The main components of CRE that will be impacted are likely to be retail and hospitality because the area will be a major draw for people across the Raider Nation.
Now is a good time to assess the health of both commercial real estate sectors in the Vegas metro area.
Las Vegas Retail
Last year ended well for Las Vegas retail, according to Colliers International. Vacancy rates for the retail industry ended 2016 at 8.3 percent, a significant decrease from the prior year’s rate of 9.5 percent. Meanwhile, taxable sales increased 2.6 percent. Just under 1.4 million square feet of new construction is currently planned for retail. There is 480,000 square feet is currently underway being built. Most of these developments are taking place in the suburban Henderson market. New retailers are also moving into Vegas. Target is opening its Express format in the metro area, and other chains, such as Paul Mitchell, Five Guys Burgers & Fries, Discount Tire, and several others. Now, when an NFL comes to town, expect more to follow.
Las Vegas Hotels
The hospitality industry is also apparently thriving in Las Vegas, says another Colliers report. The most important metric of hotel fundamentals is revenue per available room (RevPAR). That increased 2.4 percent year over year in October. Occupancy rates hit a very strong 92.7 percent, which was an increase from the prior year. There were also 865,000 more visitors last year than in 2015. That made gaming revenue spike across the city, showing very positive trends in that area, which is crucial to the Vegas economy.
Las Vegas Raiders
When the Raiders roll into town, it’s a given that all of this will tremendously improve. The NFL is the most popular sport in the country, hands down. Las Vegas is one of the biggest draws in the country for tourism and shopping already. The Raiders’ move to Vegas is bound to only improve that situation.