Data suggest there was no major impact. We witnessed single incidents of distressed sales however nothing systemic and 2020 average sale price exceeded 2019 ($446.43/sf vs. $439.42.)
In our view, this is because of supply and demand. Prior to the 2008 crash, 122 high-rise condominium buildings with a total of nearly 17,000 units had been announced, per Wikipedia.
In 2021, we have yet to see a viable condo project announced, yet we saw over 100,000 people relocate to Nevada from California alone.
Prior to Caesars acquisition, I worked directly with the Chief Development Officer and was tasked with exploring residential options for underutilized land owned by Caesars.
Even with “free” land, we could not justify building luxury towers as the cost vs potential sales price was unfavorable and building additional hotel towers vs condos was more profitable with less risk.
Unless Las Vegas Sands finishes the St Regis Tower, we believe building luxury condos on prime Las Vegas BLVD parcels has ended, resulting in Waldorf Astoria and Veer Towers as the final towers.
Considering the above, we believe there will be incremental appreciation and rent rate increases for the foreseeable future.
Information deemed reliable, however not guaranteed.