Approved during the April 14 board meeting of the Las Vegas Convention and Visitors Authority (LVCVA), which operates the Las Vegas Convention Center (LVCC), were facility rate increases to take place in 2016 and 2018. To be applied to new leases only, existing LVCC customers would not be affected by the upsurge.
The LVGBD Committee stated that “[t]hese rate increases will allow the LVCC to remain competitive with similar convention facilities while supporting the investment of the Las Vegas Global Business District.”
First proposed on April 3 during the initial meeting of the Las Vegas Global Business District (LVGBD) Committee, a sub-committee overseeing the LVGBD expansion project, the LVCVA Marketing Division requested the board consider raising facility rental rates for new leases from its current prices at $0.29 per net square foot (NSF) per show day and $0.145 per NSF per move-in/move-out day, established since Feb. 14, 2006.
Going into effect on July 1, 2016, the board unanimously approved an increase to $0.33 per NSF per show day and $0.165 per NSF per move-in/move-out day. To increase again on July 1, 2018, rates will be raised to $0.35 and $0.175 per NSF for show days and move-in/move-out days respectively.
Estimated incremental revenue from the facility rate increases would total $700,000 in fiscal year 2018, $1.3 million in 2019, $3.5 million in 2020, $3.9 million in 2021, $4.4 million in 2022 and up to $5.1 million by fiscal year 2023, a potential of nearly $20 million in profits over 5 years for the third largest convention center in the U.S.
Historically, LVCC raised its rates four times since its original prices of $0.05 per NSF per show day and $0.025 per NSF per move-in/move-out day on April 1, 1959.
LVCC Rental Rate History (per net square feet)
|Effective Date||Show Day||Move-in/
|Jan. 1, 1987||$0.15||$0.075|
|Aug. 1, 1998||$0.20||$0.10|
|Jan. 1, 2002||$0.25||$0.125|
|July 1, 2009||$0.29||$0.145|