Las Vegas Businesses Hurt By Huge Rent Hikes May Force Moves Or Closures

Las Vegas’s small business owners are feeling the pinch of inflation, rent hikes, and rising costs on just about everything. Some small businesses are seeing 20%-30% hikes in their rent. Many of these owners don’t see how they can bring in enough money to stay in their location.

There are many reasons, according to an article written by Kelsey McFarland on KTNV.com. Firstly, there’s the issue of supply and demand. There is currently a high demand for retail space here in the Las Vegas valley.

Secondly, the cost of doing business has risen dramatically in the past few years. Insurance rates have gone up. Energy prices have skyrocketed. Water costs more. Tax rates are up.

Therefore, owners of retail spaces like strip malls and business complexes have seen operational costs rise. Accordingly, they must pass those costs on to their renters to stay in business. That is why many Las Vegas small business owners are seeing huge rent hikes.

Given these points, what will small business owners do? Certainly, raising the prices on their products is one example of how they can manage a massive rent hike. However, when that happens, many customers may decide their products are not worth the higher prices. Consequently, business suffers, and the owners are faced with a “catch-22” situation.

Besides raising product or service prices in this situation, other options include moving or closing for good. All of these options seem very unfortunate, and tough decisions will be made.

Experts are predicting that commercial real estate prices will continue to rise. The Las Vegas area is seeing some incredible business expansion. Our city and state offer many tax advantages to businesses. We are seeing many professional sports franchises starting here (Vegas Golden Knights) or moving here (Raiders and A’s).

In like manner, there are talks of the NBA coming to town. Formula 1 races will take place here for the next decade. Additionally, plans for the Brightline train from Los Angeles to Las Vegas are in the works. With all of this positive business expansion in the valley, demand for space will be high. Generally, higher demand leads to higher prices.

Per McFarland’s article, the commercial real estate agents she contacted offered good advice. Basically, small business owners should contact a real estate expert one year before their lease is set to expire. In this manner, they will know what kind of rent increase to expect. They will be able to plan accordingly.

And for the second time in their history, the Vegas Golden Knights have a chance to win it all. The last time the Stanley Cup was this close was the Knights' inaugural season in 2018. Where they lost to the Washington Capitals in five games. So the VGK has already surpassed their own record for how close they are to the trophy. Not that they, or anyone in Vegas, is okay with stopping there.

The Vegas Golden Knights were the third expansion team to advance to the Stanley Cup Finals when they beat the Winnepeg Jets in 2018. And in the same season they broke the record for the most postseason games won by an expansion team. Fun fact: the team that held that record prior was...any guesses? The Florida Panthers. Small world, isn't it?

Well, bragging rights, of course. They also get a cash bonus, usually around a couple hundred grand. And the gorgeous championship ring. But the cooler things include their name engraved on the cup. Which is a big deal because unlike other professional sports, hockey doesn't make a new cup every year. The Stanley Cup is an artifact. And there are names engraved from past winners. So players can have their name alongside some of their childhood hockey heroes. That's pretty darn cool.

Every player on the winning team gets to spend 24 hours with the Stanley Cup wherever they choose. A lot of times players will take it to their hometown and let everyone who encouraged them on their journey to share in their victory. I'm not crying, you're crying.

So that's what players get for winning the famous cup. But the perks don't stop there. Let's talk about how the Vegas Golden Knights winning tonight would make the whole city of Las Vegas a winner too. Wendy Rush

A recent study done at Harvard and Case Western University showed the potential for 13% growth in the number of bars and restaurants surrounding the stadium of a winning team. And with more businesses comes more jobs for Las Vegas locals.

If you lived in Las Vegas in 2017, you know the impact the Vegas Golden Knights' inaugural season had on the community. After the traumatic events at the Route 91 Harvest Festival on October 1 of that year, the city was deeply shaken. Being able to rally together behind a winning hockey team was truly a form of therapy to many who felt alone and afraid.

Beyond just bragging rights for winning the Stanley Cup, Las Vegas would have something else to show the world in terms of what we're capable of. Those of us who live in Vegas know we have a lot to offer. From community and family-friendly events to outdoor activities. But for all of those people who still think we're just good for gambling and strip clubs, we'd have a pretty compelling piece of contradiction.

Increased tourism is one major benefit of the VGK winning the Stanley Cup. New visitors have been coming for the playoff games. And more will come to next year's games if the VGK is the reigning champion. That means more money spent in Las Vegas.

Remember how we said before that some hockey players choose to take the Stanley Cup home to show to those who helped inspire them? Or how they'd get their names next to their hockey hero on the cup itself? Well, there are little hockey kiddos all over Vegas who would get to say that about their hometown. And that's pretty cool.

Larry Martino is the long-time afternoon drive personality on 96.3 KKLZ. The views and opinions expressed in this blog are those of Larry Martino and not necessarily those of Beasley Media Group, LLC.

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