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?