Fair or Raw Deal: $20M per acre?
Land on the Strip is at a premium, and investors are willing to pay. Current prices are averaging more than $20M an acre with demand running high for every scrap of build able land. Even with land and construction prices hitting an all time high, several big projects continue to move forward. Additionally, they appear to be attracting other developments as well.
Casinos are leading the pact with more grandiose luxury casino/hotel structures planned. But, despite the surge in capacity, most analysts expect travel demand to Las Vegas to keep pace. In fact, Standard & Poor’s expects a 30% increase in Las Vegas hotel rooms by 2010. However, the industry is expected to handle the increase with relative ease — as long as the economy remains healthy.