3 Predictions for the Las Vegas Luxury High-Rise Market, 2008

The Las Vegas Luxury high-rise market is still in its infancy. A few short years ago no-one could have imagined people actually living in the resort corridor of the Strip. This would be defined as the area between Mandalay Bay on the South and Sahara Blvd on the north. As of this final day of 2007 there are several luxury Condominiums on or near the resort corridor, but just one completed condo tower located directly on the Strip. SKY Las Vegas. This will not change until late 2009 when the fabulous MGM Mirage CityCenter opens.

3 Things to look for in the coming year.

1. The media will finally stop lumping the residential housing slump and and high rate of foreclosure with the Luxury high-rise market. These are distinct and separate markets and look nothing alike from a inventory or foreclosure standpoint. The fact is that very few high-rise properties on the market in the resort corridor, as of this writing something less than 500. On the foreclosure side lets use Turnberry Place to make a point, the MLS listed 3 properties in foreclosure as of mid December. There are over 800 units in the 4 tower complex. This represents less than .05% of the units in Turnberry Place are in foreclosure.

2. As the massive construction projects along Las Vegas Blvd start to take shape, look for interest in the residential offerings begin to accelerate. It is difficult for many to see past the bulldozers and construction cranes. As some of the multi-billion dollars properties like CityCenter, and Fontainebleau, start to look the part, people with the means to own in these high-end properties, will be attracted.

3. As property flippers are washed from the market, expect to see shrinking supply of Luxury high-rise listings available for purchase. In some of the towers that closed this past year, we have seen a good percentage come back as resales. Virtually no residential towers outside the major resorts are planned going forward as the cost of land and more importantly, the lack of land make any new, non-gaming properties cost prohibitive. The net effect should be a significant increase in pricing power for sellers in late 2008 and especially 2009.

We will revisit this blog late next year with a report card...Have a great 2008!

Tom Garcia, Amy Garcia. The Garcia Group www.vegasluxuryliving.com

"Selling the Luxury Lifestyle is our Passion"

"Your Premier Las Vegas Strip Consultants"

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