Las Vegas could experience extended period of no new gaming venue: CBRE Analyst

Las Vegas could experience extended period of no new gaming venue: CBRE Analyst

CBRE Group Incorporated, an American commercial real estate services & investment firm, believes that there is no shortage of casinos in Las Vegas, and the Sin City could experience an extended period of no new gaming venue.

In a new report to clients, CBRE analyst John DeCree said the Fontainebleau Las Vegas and Red Rock’s Durango Casino & Resort will likely be the last additions to Las Vegas’ casino market for some time. Fontainebleau Las Vegas will be the newest opening on the Strip’s north end, while Durango Casino & Resort is opening in Southwest Las Vegas. Both properties are scheduled to open later this year.

The experienced analyst stated that the Sin City could absorb the additions of the two new gambling-friendly venues, but macroeconomic headwinds would likely’ not allow development of any new casino for the predictable future.

The analyst blamed increasing cost of construction and tight credit markets as some of the several factors responsible for the predicted cooling down of development activity. In other words, the existing state of development affairs on the Las Vegas Strip is not outright sanguine due to macro challenges like persistently high rate of inflation and increasing rates of interest.

Speaking on the topic, DeCree explained, “Given the rising cost of construction and tight credit markets, we suspect development activity will cool off, at least for now. This means the projects slated to open this year could be the last wave of major developments in Las Vegas for a little while.”

In addition to the aforementioned two gaming properties, the $2.1 billion MSG Sphere will also open later this year on the Las Vegas Strip. While MSG Sphere is not a gaming venue, it could lead to increase in foot traffic to the Venetian and other close by properties on the Strip.

Just a few days back, construction on the Dream Las Vegas on the south end of the Las Vegas Strip was stopped. That is as the entity behind the project looks to procure $30 million in financing to pay for work that has already been completed.

NASDAQ-listed Red Rock Resorts Inc., one of the dominant operators of gaming properties in the Las Vegas locals segment, is slowly but surely stretching its feet in the gaming space. After recent opening of its Wildfire casino in downtown Las Vegas, it is all set to open its Durango Casino later this year.

Technology Update: