(image above taken by Ray Smith of a load-in at the LVCC)
By Ray Smith, Exhibit City News
The cost to exhibit at Las Vegas Convention Center will increase every year from its current daily rate of 35 cents a square foot to 49 cents a square foot in 2035, a significant bump for mega shows such as CES, Con/Agg Expo and SEMA that occupy upwards of 2 million square feet of exhibit space.
The Las Vegas Convention and Visitors Authority board of directors voted unanimously to extend the lease rate increases through 2035 at its May 14 regular meeting with no questions or comments.
In September, the board approved raising convention center lease rates by one cent a year, effective Jan. 1, 2026, from 35 cents a square foot to 40 cents in 2030. The latest action takes effect Jan. 1, 2031, when rates are hiked to 43 cents a foot.
Lisa Messina, chief sales officer for LVCVA, says the cost to operate the convention center has not kept pace with inflation, and the rate increase is deemed necessary for construction, renovation and operation of the facility. The rates are in line with those in Chicago and Orlando, Fla., she adds.
Lease rates encompass all areas of the convention center used for tradeshows, meetings and events, including exhibit halls, meeting rooms, concourses and lobbies.
“As we look at our customer list between 5,000 and 20,000 people, the goal is to put these shows into new and open space,” Messina says.
Additional revenue from the increased rates is estimated at $2.7 million in 2031; $6.8 million in 2032; $9.5 million in 2033; $12.2 million in 2034; and $14.9 million in 2035.
RENOVATION UPDATE
Phase III of the $600 million renovation of Las Vegas Convention Center continues with demolition of the grand lobby, preparing for an architectural ribbon that will give the older exhibit halls “incredible curb appeal,” says Brian Yost, chief operating officer.
Administrative offices formerly in the North Hall are being demolished to allow for a “soaring atrium” looking down upon the lobby. Steel is being placed for roof work and HVAC upgrades on the North and South halls. New LED lighting will be brighter and better for the environment, Yost notes.
CEO Steve Hill says he’s excited to see renovation progress over the past 12 weeks, with 18 months of construction work still to come, including new meeting rooms, work on the Vegas Loop tunnel, and back-of-house facilities for support personnel.
“Those areas are probably teardown,” Hill comments. “Some of those places look like we didn’t speak with the county building department … that’s not true.”
GEOTECHNICAL SERVICES
The board authorized a $2 million payment to Geotechnical and Environmental Services for inspection and material testing related to the Phase III renovation project. The contract goes through 2026, which will complete the renovation work.
The convention authority has been using GES as its engineer of record for quality assurance work since May 2022. GES was selected through a Request for Quote (RFQ) process.
PRELIMINARY BUDGET
CFO Ed Finger presented a preliminary 2025 net budget of $932.1 million as an informational item for the board, requiring no action. A public hearing will be held May 29 to adopt the fiscal year 2025 budget.
The budget includes $457.5 million in general funds, $125.9 million in debt funds, and $548.8 million in capital funds.
Room taxes account for the largest revenue source, estimated at $398.5 million for 2025. Las Vegas won’t host the Super Bowl next year, but it still has the Formula 1 Grand Prix, the CFO notes. Other revenue comes from convention business ($64.9 million), monorail operations ($27.7 million), and interest on investments ($18.8 million). A potential land sale could bring in another $130 million.
Roughly one-third of the budget is allocated for marketing, 12 percent for special events, and 4 percent for sales. LVCVA employed 426 full-time workers in 2024, down from 486 in 2020.
MOVING ON
Board members and LVCVA staff bid farewell to Lori Nelson-Kraft, senior vice president of communications, who is going to work for Formula 1 Grand Prix. She spent five years at LVCVA, handling corporate communications and social responsibility inquiries. Nelson-Kraft previously worked in public relations for R&R Partners, a third-party marketing and advertising arm of LVCVA, and for Station Casinos (Red Rock Resorts International).
