A New Skyscraper for Las Vegas Receives First Approval
The Federal Aviation Administration has approved the construction of a new skyscraper measuring 699 feet. It will be built on the Las Vegas Strip on the site of the Casino Royale.
The Casino Royale, at 3411 Las Vegas Boulevard, sponsored the FAA-approved study, which states that on August 30, 2023, any decision will be finalized if a petition is not timely filed. Should it receive authorization and be built, the casino would have to be demolished to clear space for the new building. It will be among Las Vegas's biggest structures, only being surpassed in size by the Strat and the yet-to-be-completed Fontainebleau.
Concerns of an Approved Aeronautical Study
Construction must start before the building's FAA approval expires on January 21, 2025, as stated by the approved aeronautical study. The letter further specifies that a different form needs to be submitted to the FAA at least ten days before construction begins and within five days of the project reaching its peak height. However, the construction is described as " exceeding obstruction standards."
Moreover, the public notice indicated that the planned building is situated near significant and regular helicopter air tour activities at LAS (Harry Reid International Airport) and the Las Vegas Strip. This aspect is currently being examined by the FAA as the building is proposed to be 699 feet above ground level. Public input is being sought as part of the investigation process.
The proposed project's details still need to be submitted to Clark County. A proposal from the Federal Aviation Administration indicates that Craig Dudley, a resident of Las Vegas, is identified as the sponsor of a study concerning the Casino Royale location. However, when approached by the Review-Journal about the project, Dudley opted not to comment, and neither did his representative, Capitol Airspace Group.
Build Up, Not Out
Las Vegas is witnessing a surge in competition in its real estate market as construction persists while the availability of vacancies dwindles. In the second quarter of 2023, CBRE Group Inc. reported a minute reduction of 0.1% in commercial real estate vacancies in the Las Vegas market. This translates to a 4.4% decline compared to the corresponding period in 2022.
The company claims that due to the competitive market, the rental costs have surged by 25% compared to the previous year. Consequently, desirable locations within the Las Vegas Valley are currently facing an unprecedented wave of vacant properties. Specifically, the Northwest Las Vegas Valley region is grappling with a 2.1% vacancy rate, while the Southwest has a slightly higher 3.2% vacancy rate.
Developers nowadays concentrate on the creation of compact commercial buildings, which typically feature one to four offices, rather than obtaining approvals for expansive department store projects. This shift is driven by the fact that smaller infrastructure serves as a protective measure for developers, providing them with a safety net.