By: Melissa Skipworth
The COVID-19 pandemic wreaked havoc on the city’s tourism-dependent economy. Conventions, hotels, dining and entertainment produce more income for casinos than gaming, making it extremely important to fill those venues, and the tourism industry has the largest employment sector in the region. Everything caters to visitors, such as taxicab operators, sightseeing tour companies, retail outlets, bars, restaurants and the obvious hotel and casinos. According to the Las Vegas Convention and Visitors Authority, for the year 2020, when the pandemic lockdowns began, Southern Nevada’s unemployment rate average was the highest among large metropolitan areas at 14.7 percent and was the fifth-highest among more than 300 metro areas in the United States.
With this in mind, Las Vegas has focused on diversifying its economy outside of the hospitality business so that when future crises inevitably strike, they hopefully will be less detrimental. A recent report on Nevada’s COVID-19 recovery published by the Nevada Governor’s Office of Economic Development promotes further diversification and a push for more technology- and skill-intensive jobs.
If you’re wondering why high-tech companies like Elon Musk’s The Boring Company or Alphabet Inc.’s Google empire have made the big move to Las Vegas, here is why in five simple reasons:
Taxes
The Tax Foundation’s 2020 State Business Tax Climate Index rates Nevada as the 7th best state in five areas of taxation: corporation taxes, individual income taxes, sales taxes, unemployment insurance taxes and property taxes, including residential and commercial property taxes. Why is this important? It means that Nevada takes attracting new business seriously. Not only are there no franchise taxes or unitary taxes, there are also no inventory taxes, inheritance taxes or estate taxes, and sales taxes are only 8.1 percent. California ranks 48th; no wonder their residents are fleeing by the masses.
Opportunity for Growth/Access to Key Players
Las Vegas is a worldwide empire with connections, and it’s also a small community of roughly three million individuals. The region routinely ranks at or near the nation’s highest in growth and investment and is currently experiencing population growth three times the national average. While tourism remains the largest industry, it is far from the city’s only industry. More than 10,000 businesses and more than 180,000 jobs have been created in Clark County since 2011. That implies that companies have room to expand and gain greater recognition. Home to the largest conventions and tradeshows, Las Vegas will give companies the ability to build networks and find potential business investors or innovative companies that can help them grow.
Geographic Location and Infrastructure
Companies stage their operations in Nevada for a variety of reasons, including a well-developed transportation infrastructure, closeness to west coast/California markets and businesses, and lower shipping and storage expenses. According to the LVCVA, the city experienced a high vehicle traffic volume of 19 million cars in 2020 alone. Furthermore, the city is less than a day’s drive from millions of consumers as well as major U.S. deep water seaports supplying the Pacific Rim through interstates and roads. Don’t underestimate the importance of rail transportation; Las Vegas has links to the major Union Pacific and Southern Pacific railroads, which play an important role in transporting freight from the coast to the interior. For more than five years, McCarran International Airport has been a Top 40 airport, consistently ranking 7th, servicing more than 20 million passengers. More importantly, the airport is served by nonstop flights to and from nearly all major US cities.
Business Assistance Programs
With an abundance of economical commercial real estate, you can easily find a new space to expand your business. Coldwell Banker Commercial Premier partners with each client to truly listen to their unique business needs and design an integrated service offering. Whether you are seeking land, office, industrial or retail property, I can guide you through identifying potential development opportunities as well as assist in relocating your staff to the city. You can also capitalize on the many grants, bonds, and incentives the state of Nevada offers to qualified companies or research the many business development and assistance programs, workforce development, economic development support and funding, international trade programs, rural community programs, and procurement assistance available.
Entertainment Capital and Weather
Nevada is both a beautiful location to visit and a fantastic place to live. It captivates tourists and residents with all the thrills and excitement that Las Vegas has to offer as the entertainment capital of the world, as well as natural beauty and year-round recreational possibilities such as skiing, golfing, hiking, fishing and swimming. There’s no denying the heat, but with 292 sunny days a year you can enjoy the adventures of the desert any time of year. In addition, Forbes ranked Henderson and Las Vegas as two of the best cities for dog owners. Dog parks can be found throughout the city, as well as dog-friendly eateries in nearly every section of the valley. Many Las Vegas businesses are even making their workplaces dog-friendly.
Melissa Skipworth is a licensed REALTOR® with Coldwell Banker Premier Realty Lic. S.0191667. If you have questions about buying or selling in today’s market, contact her at 702.481.4103 or visit her website at melissaskipworth.cbvegas.com. Equal Housing Opportunity.
