Appraisal Articles 2019 Free Appraisal Articles for Appraisers and the Public
I have discussed the valuation of Las Vegas Strip properties in the past and how that market stands alone unto itself. The Strip has its ups and downs over time as anyone who follows the news well knows, but those swings are not always in sync with the local Las Vegas / Clark County commercial real estate market. Land values on the Las Vegas Strip often run at least ten times higher than the prices being paid for the most well located off-strip parcels. Valuing land is straight-forward, you can usually find out what was paid and discover the upward or downward trend line and conclude a credible value.
Do real property values continue to increase as you move from the ends or the periphery of the Las Vegas Strip toward its middle? Of course they do, but there are no linear adjustments that an appraiser can apply, and the adjustments made in an appraisal report are subjective. At time there are sales near the center of the Strip, establishing a high value limit and sales at the ends happen periodically establishing a low end. There are many factors affecting value. Most important to many buyers is gaming. You need to be able to obtain a gaming license at a specific location if that is your ultimate goal. While real property must be approved for gaming, there are approved gaming overlay Districts, it is the Nevada Gaming Commission and the Nevada Gaming Control Board that controls who is approved for a gaming license. So if the land can be used for gaming, securing a gaming license generally does not affect real property value.
Anyone who knows about retail sales will tell you that you have a much better chance of selling a pedestrian something than selling a person passing by in a vehicle. When you are walking at 1 mph or so you can’t help but look at a retailer or a restaurant’s offerings, but if you are driving by at 25 mph or 45 mph you are lucky if the driver and passengers even see your retail establishment. In Las Vegas pedestrians are usually in tourist areas because they want to be there, and most have money to spend because they are on vacation. Vehicular traffic on the Strip is made up of employees going to work, sightseers who can’t or don’t want to stop, advertising vehicles, destination drivers and taxicabs. You can be on the Strip and have 75,000 vehicles per day or more passing your location, but few if any will stop and park to get into your business.