Will Rising Costs Penalize LV Developers
Rising materials and construction costs are plaguing LV developers, driving up the price tag on several projects. One such example is the MGM Mirage’s Project CityCenter whose initial project budget two-years ago was $5 billion. Today, it has already revised to $7 billion.
Other projects, have taken a more conservative approach to the rising costs by scaling back previous plans. That’s exactly what Station Casinos Inc. did when it opened its $900 million+ Red Rock Resort far from the Strip. Original plans had called for a condominium tower, but those plans were scrapped as construction costs continued to escalate.
To see how LV developers are responding to rising costs, check out the WSJ article, Spiraling costs plague Las Vegas developers