{"id":230952,"date":"2022-09-08T13:08:15","date_gmt":"2022-09-08T18:08:15","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=230952"},"modified":"2022-09-08T14:40:56","modified_gmt":"2022-09-08T19:40:56","slug":"you-wont-believe-how-much-it-costs-to-lease-a-store-on-the-las-vegas-strip","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/you-wont-believe-how-much-it-costs-to-lease-a-store-on-the-las-vegas-strip\/","title":{"rendered":"Las Vegas Strip Store Leases: You Won’t Believe How Much it Costs"},"content":{"rendered":"

The reason so many $5,000 watches are for sale on the Las Vegas Strip is because luxury goods are the only way to pay the extravagant rents charged by hotels and malls located there. Leasing inside the Shops at Crystals, Wynn, or Bellagio costs about five to 10 times as much as the same-size store would off-Strip.<\/p>\n

\"Retail
Negotiations are currently in progress with potential tenants to fill the David Collins Studio-designed high-end retail space at The Fontainebleau Las Vegas, which is scheduled to open in October 2023. (Image: prnewswire.com)<\/figcaption><\/figure>\n

According to an informal survey of recent commercial listings conducted by Casino.org<\/em>, the going rents are between $200-$300 per square foot.<\/p>\n

That doesn’t<\/em> include the $70-$100 extra per square foot for the property taxes, property insurance premiums, and common-area maintenance fees. The stores must pay that to their landlords in typical triple-net lease structures.<\/p>\n

If you had to pay $1 million a month for a 2,500-square-foot store, you\u2019re probably not going to sell T-shirts there,\u201d Frank Volk, executive vice president of the CBRE real estate group, told Casino.org.<\/em> Volk, who is part of the retail leasing team at the Fontainebleau Las Vegas, has had a 30-year career in commercial real estate across Las Vegas, completing transactions worth more than $1.5 billion.<\/p><\/blockquote>\n

According to Volk, there are some variables to play with in an upscale shopping district that help determine a lease price. For instance, the best position in a mall usually costs more. \u201cSo you start chess-boarding,\u201d he said. \u201cYou put the high-volume store in the best position and a lower-volume store in the next position because they can only pay so much rent.\u201d<\/p>\n

The Bigger the Brand, the Smaller<\/em> the Rent?<\/h2>\n

You would think tenants with super-recognizable names would get charged the most. But according to Volk, they can often pay a smaller base price than their lesser-known neighbors because those neighbors are willing to pay more. Being next door to a Gucci, Dior, or Chanel store \u2014 the top-grossing luxury brands of 2022 \u2014 means wealthier foot traffic for them.<\/p>\n

Volk cites as an example Rolex, whose three Las Vegas stores are usually out of watches because the company limits manufacturing to maintain the value of each watch.<\/strong><\/p>\n

\u201cGo to a Rolex store on the Strip and see if there’s a watch there,\u201d Volk told Casino.org.<\/em> \u201cThere most likely isn\u2019t. But another store with very nice, expensive watches will want to open in the same property as a Rolex store, so they can possibly capitalize off the cross traffic and move their in-stock inventory.\u201d<\/p>\n

The Importance of Brand Compatibility<\/h2>\n

A well-planned shopping district, whether it’s super high-end or a strip mall, will tend to appeal to the core values of the same type of customer, Volk explained. That makes it more likely for that customer to window-shop and buy in all of the district\u2019s outlets.<\/p>\n

This appears to be why, after 12 years, the PBR Rock Bar and Grill got tossed from its saddle last month by the Miracle Mile Shops. The 500,000-square-foot shopping district adjacent to Planet Hollywood is currently undergoing a multimillion-dollar makeover. It is gettting help from Design and construction groups Cooper Carry, Digital Kitchen, Sensory Interactive, and VCC.<\/p>\n

After two years of lease negotiations, PBR owner Jonathan Fine posted on his bar\u2019s Facebook page, \u201cThe landlord has determined a Country Americana brand is not a \u2018fit\u2019 for them at this time.\u201d<\/strong><\/p>\n

Volk said he can\u2019t specifically speak to PBR\u2019s situation, \u201cBut it\u2019s not always about money. Sometimes, it’s about the kind of image a landlord is trying to build and the kind of customer that they want to go from one place to another afterwards. And it\u2019s a landlord\u2019s right to do that.\u201d<\/p>\n

Filling a Luxury Retail District 101<\/h2>\n

When trying to find brands to fill a new high-end Las Vegas Strip shopping district, Volk said he typically draws a grid showing the locations of all the top luxury brands.<\/p>\n

I try to figure out who’s in growth mode, who’s looking to expand,\u201d he said. \u201cI\u2019d like to say there\u2019s some abstract formula to it, but you just kind of look at the top luxury brands and you go, \u2018These are the brands that people want.\u2019 The road map exists in luxury mall merchandising around the country, and you then can tailor [it] to your specific project.<\/p><\/blockquote>\n

\u201cThe Las Vegas Strip isn\u2019t a difficult sell to luxury,\u201d he added. \u201cBefore I even talk to them, many have already made the decision to either open another store or relocate to a better, newer project already.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

The reason so many $5,000 watches are for sale on the Las Vegas Strip is because luxury goods are the only way to pay the extravagant rents charged by hotels and malls located there. Leasing inside the Shops at Crystals, Wynn, or Bellagio costs about five to 10 times as much as the same-size store […]<\/p>\n","protected":false},"author":78,"featured_media":230960,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[81886],"tags":[23,82739,82736,82737,82738],"acf":[],"yoast_head":"\nLas Vegas Strip Store Leases: You Won't Believe How Much it Costs - Casino.org<\/title>\n<meta name=\"description\" content=\"The reason so many $5,000 watches are for sale on the Las Vegas Strip is because luxury goods are the only way to pay the extravagant rents charged by\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/you-wont-believe-how-much-it-costs-to-lease-a-store-on-the-las-vegas-strip\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Las Vegas Strip Store Leases: You Won't Believe How Much it Costs - 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