The Las Vegas Convention Center (LVCC), a multibillion venue with a 70-year history and one of the world’s largest event spaces, is set to increase its rent rates.
This decision is is expected to generate an additional $5 million in yearly revenue for the Las Vegas Convention and Visitors Authority (LVCVA) by 2030. It was authorized this week by the Authority at a general meeting.
Starting from January 1, 2026, the LVCVA will implement a penny-per-year increase in the rent rates through to 2030. At present, the LVCVA charges 35 cents per square foot for each exhibit day. This rate will see an increment to 36 cents come January 1, 2026, and is projected to reach 40 cents per square foot by January 1, 2030.
These rate changes coincide with the ongoing $600 million renovation of the convention center’s North, Central, and South halls, which is set to complete in 2025.
The LVCVA, led by CEO Steve Hill, has recently overseen a boom in Las Vegas visitors, with record numbers of people flying through the city’s Harry Reid International Airport each month.
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Despite the rent increase, the Authority says Las Vegas’ rates will remain more competitive than most major convention centers across the U.S.
A report presented at the meeting highlighted that the Convention Center’s lease rates hadn’t been adjusted in line with inflationary trends over previous years. It also said that appropriate lease rates are crucial for the construction, renovation, and operation of a top-tier convention facility.
The LVCVA has been renting out exhibition halls, meeting rooms, concourses, lobby spaces, and even parking lots to a variety of trade shows, conventions, and meetings for more than 50 years.
In the fiscal year 2023, the Authority took in $67 million from renting out these spaces.
This figure includes $35.6 million generated from exhibit halls, meeting rooms, and parking lot grounds. The remaining revenue was sourced from paid parking fees, food and beverage sales, data services, contractor services, and advertising. The LVCVA’s convention sales team has already informed many of its major customers about the impending rate changes.
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At the meeting LVCVA President and CEO Hill also updated board members on the ongoing sale of a 10-acre plot on the edge of the Convention Center site.
Previously occupied by the Riviera, developers Brett Torino of Las Vegas and New York’s Paul Kanavos are in the process of buying the land for $125 million.
Hill elaborated on challenges related to the fill dirt beneath the ground where the Riviera was imploded. This makes it unsuitable for the as-yet unrevealed project, according to Hill. The LVCVA is working with the potential buyers and construction firms on the problem, aiming to have a solution ready before the end of the year.
The Las Vegas Convention Center, with its 2.5 million-square-foot facility, has been a cornerstone for large-scale events in Sin City for decades.
Owned and operated by the LVCVA, a state agency established in 1955, the center has been pivotal in promoting Las Vegas as more than just a prime gambling destination. The LVCVA not only benefits from the hotel room occupancy tax levied on rooms within Clark County, but also from operating the Convention Center.
Earlier in 2023, the LVCVA voted for a significant pay rise for Hill, after record visitors to Nevada casino venues and Las Vegas throughout the year.
As well as a huge uptick in visitors, Sin City is also looking forward to hosting the Las Vegas Grand Prix in November. In February 2024, it will also welcome Super Bowl LVIII to the Las Vegas Raiders’ Allegiant Stadium.