The 2022 Retail Sector in Vegas: Performance & Projections
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.
While you might not be aiming to score five hundy by midnight, Vegas still feels like a place where anything can happen. But let’s get a little more realistic: retail space is far more dependable than a turn around the tables or a bit of time spent pulling the slot machine levers.
Vegas is far from dead; the retail revolution is picking up steam. Vegas as a travel destination is back in full swing, from renewed hotel room and occupancy rates, all the way up to lots of casino acquisitions.
Before pursuing any type of retail space for rent in Las Vegas, it’s a good idea to study past, present, and current performance.
Vegas Retail by the Numbers
Tourism, retail, and gambling go hand in hand. People come to Vegas to get away from their day-to-day life, and Vegas’s hospitality and tourism industries are designed around crafting experiences that visitors just can’t find anywhere else.
Here are a few important stats that drive this point home:
- According to the National Retail Foundation, 27% of jobs in Nevada are supported by the retail industry.
- Also from the same association, the direct labor impact is over $10.5 billion.
- As reported by Advertising in Vegas, the annual growth rate of retail in Vegas is roughly 13.5%.
- In Q1 2021, 225 new retail leases were signed.
- In the same report as above, Avison Young reported asking rents for retail space hovered right under $2 per square foot.
The retail market has had some hiccups, especially as partial/full quarantine status prevailed, but Vegas is fully in the post-pandemic era now. Visitors are ready for the full Vegas experience, which includes restaurants, hotels, gambling, and shopping experiences.
Economic Momentum Feeding the Retail Industry
The concept of economic momentum is not new, but it is being defined as a metric that pulls in multiple factors to draw a clearer picture of economic health. According to the Federal Funds Information for States recent report, Nevada is leading the country in terms of this redefined metric. The focus points? Income, employment, and population.
The Nevada Independent is also tracking the recovery progress, and the numbers are looking good: gaming revenue is on the rise, and the demand in the housing sector is through the roof. The real fight ahead isn’t just for retail, but for blending experiences to remind people exactly why they choose to visit Las Vegas in the first place.
When looking at retail performance, it would be too simplistic to only examine retail. Tourism, hospitality, the housing market, and industrial pursuits all join forces to build what is known as the Las Vegas economy.
The Psychographics of Las Vegas and the Retail Experience
Far too few articles within the commercial real estate sphere deal with the impact of psychographics on the overall Las Vegas area, and what is truly underpinning the motivations behind visiting LV in the first place.
The term psychographics in marketing is the study of all of the characteristics behind a consumer or customer profile based on who the person is, what they do, and what they believe. The psychographics of Las Vegas is about luxury, convenience, and escape. Sure, plenty of people choose to call Las Vegas home. Yet the focus is definitely on visitors.
Over time, Las Vegas’s economy has grown from being just about agriculture and mining to becoming more about tourism, hospitality, and even high-tech. It’s an economic melting pot of ventures, but retail plays a role across the board.
Unlocking Las Vegas Retail Insights for Implementation
Given enough time and resources, most things are ready for implementation. This would include choosing to pursue retail space for rent in Las Vegas. Building better retail ventures starts by thinking about what people like to do and cultivating the experience they’re looking for.
In terms of Vegas, that will mean giving people a chance to buy in ways that they haven’t purchased before. Maybe that means having a completely contactless experience, something that’s become more important to people that are concerned about the post-pandemic way of doing things.
Perhaps it means that they want to have even more human contact, where service is more of a priority than before. People are very good about giving feedback and explaining their motivations, but observation also goes a long way.
Making Retail Space Effective
Spending a little extra time in the post-pandemic era to consider the possibilities of retail space for rent in Las Vegas makes sense. The landscape has changed, even though recovery is here to stay.
People have a tendency to want to go back to normal as soon as possible. Pair this desire with the possibilities of retail space, and interesting insights can come to life. The renewed interest in the Vegas experience is strong enough that it is likely we will see more joint ventures come into play.
Teamwork is always valuable when it comes to building great experiences for a target market; the blending of strengths helps not only overcome inherent opportunities for improvement but also builds a strong network for even better ventures down the road.
Up Next: Blurred Lines?
Where does technology end and business begin? As our entire culture becomes more digitized, that’s a tough question to answer. What commercial real estate fans need to look for moving forward is how to bring in the technical advantage to the retail space without erasing the very things that consumers are looking for.
That’s a tough line to walk, as there’s always the risk of alienating people that want a pure in-person experience or pushing away people that feel the in-person experience is already too antiquated. Things like VR, NFTs, and augmented reality can definitely aid in amplifying the retail experience, but caution is also key.
The post-pandemic era is forcing business owners across all verticals to think carefully about building better contingency plans, better experiences, and better responses to data. Examining statistics is only part of the solution: more focus must be on building multifaceted experiences in the retail sector.
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