BluefoxToday blog : January 2009

Las Vegas keeps on attracting new nicknames

Las Vegas Country ClubOh no, not another one. Through decades the city has been called a decent selection of names, all as a rule relating to the main industry here, entertainment. That's easy because the town grew around it, from a dusty desert enclave to a glittering world-class resort heaven. The Entertainment Capital of the World has a grand flavor to it. Sin City has been around a while, often evoking feelings of what goes on here at night, on or off the Strip. The Gambling Mecca is pretty much what it says it is, although nowadays it does have increased competition from a host of locations around the world. Some even call it Lost Wages. Probably true, too. 

A brand new nickname just popped up that has very little, unfortunately, to do with entertainment. In fact, it has a lot to do with distress, more or less the opposite from anyone having great fun. The Bone Yard. Yes, that's what a Wall Street analyst is now calling Las Vegas. It's based on the stark reality that quite a few recent projects here, generally in the luxury condominium and mega resort categories, that were either already coming off the ground or still on the drawing board have been canceled, delayed or on temporary hold.

The Bone Yard is a wake-up call for casino companies and condominium developers who previously thought that Southern Nevada would keep posting impressive growth numbers year after year, with no end in sight. The premise "If you build it they'll come" doesn't hold water any more. And also, the city now is vulnerable to a recession. In the past, locals would often boast about how it was unaffected by national economic turbulence.

This experience, laced with the Bone Yard label, will seemingly scale back previous growth models to a more realistic level. Las Vegas still has a lot to offer for those in search of top-quality entertainment and it'll remain a must-go destination for a long time to come. But before banks underwrite new projects here and developers sign up for the loans much more careful market research will be done. Southern Nevada is entering a new era where its economy is more in tune with national trends.

As to the new nickname, it'll likely just amuse the Wall Street crowd for now and when things improve here, as they eventually will, it's forgotten. Visitors from around the globe seeking real action still talk about Sin City. Or the Entertainment Capital of the World.

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Provided by: 

Esko Kiuru
Mortgage, real estate and apartment industry analyst 

www.BluefoxToday.com - syndicated mortgage, housing and property management blog

eskokiuru@gmail.com
My cell: 702-499-1006

Comment balloon 12 commentsEsko Kiuru • January 06 2009 10:27PM
Las Vegas keeps on attracting new nicknames
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