Shifting Sands in Las Vegas

It seems as if almost every aspect of our national economy (and society) is shifting these days under the weight of a deep and lasting recession. In Las Vegas it is no different and the changes are apparent everywhere you look. A couple of recent events caught our eye because they seem to be emblematic of the fundamental changes experienced by this most unique of all cities. At CityCenter for instance, the master-plan originally called for a couple of billion dollars worth of Las Vegas luxury homes to be sold in the form of high-rise condominiums. This was a very important aspect of the overall financial viability of the development as originally penciled out by MGM Resorts and Dubai World. After only managing to sell a small fraction of the total available units over the past two years, the plan has now shifted to renting with long-term leases of one or two years. This new rental opportunity makes great sense for professionals working on the Strip or corporations looking to secure a business residence right next door to Bellagio, but it's certainly not what the owners of CityCenter originally had in mind. The sands have shifted dramatically in the Las Vegas real estate market and a new approach had to be taken in order to salvage the situation (at least in part). Another recent piece of news that was particularly revealing has to do with the continuing financial struggles experienced by the Cosmopolitan Resort. The property is losing money overall (so surprise there) but the irony of this story is that revenue from the rooms and the restaurants is actually quite strong while revenue from the gaming operations is seriously lagging. Even though this is Las Vegas and people are supposed to come here primarily to gamble, at the Cosmopolitan they love the rooms, the dining and the lounges, but they aren't playing the tables and machines. Who ever heard of that before?

Downtown Las Vegas is Happening

It's amazing how the tables have turned. For over a decade the Las Vegas Strip from Mandalay Bay to the Stratosphere Tower got almost all of the attention as well as the vast majority of investment dollars. Now the action has shifted dramatically as companies and developers rediscover the value of the downtown district. The new 5-block City Hall project (expected to generate 13,000 jobs and millions in tax revenue) is but one of a number of examples signaling the return of downtown Las Vegas. The old city hall complex will be completely renovated by Resort Gaming Group and leased to online powerhouse Zappos as their new corporate campus. The $485 million Smith Center for the Performing Arts is also well under way and the Lou Ruvo Brain Institute is already open and functioning as a leading research center. All of this and more will be part of 61-acre Symphony Park, another spectacular example of the tremendous potential of the downtown area. What is being created here is very much on par with the gas lamp district in San Diego, a true urban renaissance that creates a dynamic that draws visitors, residents and businesses alike. The Las Vegas real estate market is participating in this process as well. The Ogden is already 50% leased and Newport Lofts is now completely sold out. Downtown also has the coolest grocery store in the valley. Resnicks can be found at ground level in the SoHo Lofts building. This "bodega style" urban grocery fits right in with the vibe that makes downtown Las Vegas our next up and coming star attraction!

Two Great Events coming to the Summerlin Community

We spend more time showing Summerlin real estate to our buyer clients than anything else we do. If you live in Summerlin or even if you have spent leisurely time there, you would certainly understand why this is the case. The purchase of a Summerlin home is your gateway to a community rich in culture and full of recreational activities. Here are just two upcoming examples. On Saturday, April 30th the 10th annual Tour de Summerlin will cycle it's way out of the Vistas Community Park. Riders will enjoy the scenic beauty of Red Rock National Conservation Area and choose between routes of varying lengths. This non-competitive event is very popular and pre-registration is strongly encouraged. On Saturday, May 7th it's the 6th annual Summerlin Kids Mix and Ice Cream Festival at the Summerlin Centre Community Park. Thanks to the generosity of Sam's Club this festival features all you can eat ice cream for just five dollars. In addition there will be plenty of games and activities to keep the kids busy and burn up all that sugar!

Las Vegas Real Estate Sales Activity

Momentum continues to build in 2011 as Las Vegas homes continue to be purchased aggressively and in large numbers. March clocked-in as a stellar month with sales of existing homes rising to the highest level in 17 months (5,114 closings). What is going on? It comes down to a simple choice; you can either believe all the doom and gloom about the Las Vegas economy and the Las Vegas real estate market or you can capitalize on a truly outstanding investment opportunity with significant long-term upside potential. Clearly, a good number of people are choosing the latter and doing it with gusto. How much gusto? Believe it or not, 40 to 50% of all residential transactions in Greater Las Vegas are executed on a cash basis. That's right, roughly half of all homes purchased (for over a year now) were straight cash deals. You can't get a stronger vote of confidence than that!