Las Vegas Activity Report: What a Difference a Year Makes

What happens in Vegas? Not as much as last year, with a series of dramatic project cancellations and stoppages slamming the brakes on the Strip and beyond.

Just last year in our 2007 Las Vegas Activity Report, we reported that there were over $35 billion in projects planned through 2010. Since then, several very high profile projects have been put on hold due to the deepening financial and credit crunch.

CityCenter, Las Vegas. (Photo courtesy MGM MIRAGE)

After construction had progressed for more than a year, Boyd Gaming Corp. halted work on the $4.8 billion Echelon citing the difficult capital market climate and weakening economic conditions. Approximately $500 million of work had already been completed by New York-based general contractor Tishman Construction Corp.

The work stoppage, which theoretically will start back up in around a year, sent shockwaves through Las Vegas and created a domino effect of other project cancellations.

Days after this announcement, MGM Mirage pulled the plug on its planned 166-acre mixed-use project in Jean.

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Then Deutsche Bank AG announced that it will foreclose on the $3.9 billion, 3,000-room Cosmopolitan Resort & Casino after the development entity led by New York City-based Ian Bruce Eichner defaulted on a $760 million construction loan in Jan.

Finally, Chicago-based General Growth Properties announced it was deferring approximately $500 million of worth development expenditures during the next 18 months, including a delayed opening of its 107-acre Summerlin Centre mixed-use development in southwest Las Vegas by a year or more. The company also blames the souring economy and slow pre-leasing. The 1.6 million-sq-ft open-air complex was originally scheduled to open in late 2009, with Crate & Barrel and Nordstrom as anchor tenants.

Even still, there’s a staggering amount of work underway compared to most other U.S. cities. In this section, we’ll look at several projects nearing completion and our guest analyst will give his prognosis for the office, industrial and retail markets in the coming year.

Slip-Sliding Away >>

Echelon & Summerlin Centre Delayed, Cosmo Foreclosed, Jean Cancelled >>

M is for Mastery >>

Big Apple >>

2008 Las Vegas Developer of the Year >>