Developers Still Betting on Vegas Despite Recession Fears
Despite warnings of an impending recession, entertainment projects are in demand in Las Vegas.
The demand for major construction projects is high coming out of pandemic related stay at home orders and travel restrictions. The surge in major entertainment projects shows that developers are confident in a robust recovery and a return of tourism dollars.
Some examples of major entertainment related projects currently underway include; the $3 billion Oak View Group entertainment development, and the MSG Sphere. Earlier this month, Toronto-based Colliers announced the $240 million purchase of 40 acres of land for Formula 1 racing on the Strip.
Despite the signs that tourism spending and travel are on the decline, developers seem nonplussed. “If tourism declines, you see overall economic activity can be impacted,” said Cory Sylvester, principle at DXD Capital. Despite that reality, he added “there’s certainly a lot of money that’s betting that Vegas is going to continue to do just fine.”
It remains to be seen whether the boom in building will maintain if a major recession hits.
However, the steady pace of Las Vegas commercial projects supports the notion that non-residential building weathers economic strife better than other construction industry sectors due to longer timelines for funding and planning.
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