Shoppers Are Back in Vegas: A Look at New Opportunities
Specializes in providing actionable insights into the commercial real estate space for investors, brokers, lessors, and lessees. He covers quarterly market data reports, investment strategies, how-to guides, and top-down perspectives on market movements.
Once we take a look at some tourism statistics for Las Vegas, one thing becomes immediately clear: it’s truly a place where dreams can come true. According to the Las Vegas Convention and Visitors Authority’s most recent report, over 3 million people went to the city in December of last year.
It definitely marks the post-pandemic era; despite concerns around pandemic-related travel, visitors are voting for travel with their wallets. This is an interesting topic as so many business owners are evaluating their current holdings, their business goals, and wondering what’s next for commercial real estate in this country.
The truth? It’s only up from here.
Las Vegas Tourism is the Canary in the Coal Mine
As always, studying how major market makers move in the market is never a bad idea. There’s been a few CRE developments in Las Vegas’s retail space that are quite interesting:
- California-based real estate firm Agora Realty & Management snaps up Bonanza Eastern Plaza for $16.1 million. The shopping center is fully occupied.
- CTO Realty picked up Eastern Commons in March of last year for $18.5 million, gaining 147,000 square feet of retail space in the process.
- In August of last year, local Vegas developer Brett Torino launched a new retail space called OK for Project63, with half of the retail space already leased.
These are all great signs that as tourists begin to come back to Vegas, development, and acquisitions are just par for the course. Tourists are looking for what’s new, what’s interesting, and what’s entertaining.
Shopping has long been a pastime, but being able to shop while on vacation or on a work trip is definitely appealing.
Why Would Property Owners Offer Retail Space for Lease in Las Vegas?
Commercial real estate enthusiasts primarily accustomed to outright purchases may be curious about why property owners would offer retail space for lease. While having tenants does come with its own list of responsibilities, the rewards are still present.
Vegas is a high-demand area for shopping, with an affluent audience that loves new retail experiences. Tenants will set up shop and agree to longer leases, which provide not just security for the owner, but security for the tenant as well.
Property owners know that in order to attract high-quality tenants, they will have to give a little to receive the long term benefits. So despite popular opinion, lease agreements are designed as a way for both parties to gain something from the transaction.
Benefits to Tenants Hunting for Retail Space in Vegas
The list of benefits to those searching in Las Vegas for suitable retail spaces for lease is plentiful. We’ve included a list of these benefits below:
- Less capital outlay. Entrepreneurs testing ideas have to be mindful of every dollar spent, and leasing is cost-effective.
- Better accounting. Leases are often handled as off-balance sheet transactions, not impacting assets or liabilities.
- Less renovation costs. There is no automatic requirement for tenants to improve the space they rent; this can be handled fully by the property owner.
- Easy expansion options. If tenants outgrow the first space they lease, they can move to a new location without having to think about how they will sell the property.
- Lower maintenance costs. Depending on how the lease is structured, the tenant may not be responsible for maintenance on the property at all.
- Participate in the benefits of marketing across the entire retail space. Since retail shops are grouped together in Vegas, one shop’s marketing has a positive effect on all of the shops around it.
More than anything, leased retail space puts tenants in the driver’s seat when it comes to doing business on their terms. If they do decide that they want permanent space, they can make a deal with the property owner or just find a space that’s more to their liking. They aren’t stuck in one place until it sells.
Bring Your Tenants to Vegas
For agents and brokers licensed in multiple states, finding tenants interested in retail space is a profitable exchange for all parties involved. Commissions are not only earned but happily given as you connect tenants to the space of their dreams.
Helping tenants explore these new opportunities, especially in a time when so many other people are cautious, can reap big rewards. Learning more about Vegas retail space is also good knowledge for the future, as Vegas often leads the trends that move across the country.
The Resident Factor of Retail Space
Most analysis of retail space in Vegas focuses on the Vegas Strip, but that isn’t the only place to hunt for retail space. Indeed, many people do not just visit Vegas; it’s actually where they live, work, and play. So in that vein, it’s important to examine the population of Las Vegas and the surrounding suburbs.
Take Summerlin North, for example. The median income in that neighborhood is roughly $91,080. Summerlin is definitely a neighborhood where people are accustomed to premium, luxury shopping experiences.
What people choose to build for a retail experience is limited only by their imagination, overall budget, and zoning restrictions. However, there really is a market for just about everything, and leasing space is the key to unlocking these new opportunities.
Remember: Retail Goes Beyond Convenience
Retail space feels like the potato of the commercial real estate world. It isn’t very interesting on its own, but it’s versatile and can be changed in so many different ways. No matter what’s going on in the world, people will come out to travel, seek new experiences, and pick up things from the stores of their choice.
Remember that retail isn’t just about everyday items, but luxury and specialty goods as well. People like to go shopping, not just for themselves, but to look for things that are special to the people that matter most to them.
This means that building a retail experience in Vegas is often a profitable venture for people hunting for retail opportunities. The post-pandemic era marches on, and so do new opportunities in commercial real estate.
List & Browse Retail Space for Lease and for Sale for Free on MyEListing.com!
You can create a free account and browse and list retail space for lease and for sale for free right here on MyEListing.com. Get access to accurate market intelligence, customized property type alerts, free demographics reports, and more.
Other recent articles
Article Search
Share
All Article Categories
