Appraisal Articles 2019 Free Appraisal Articles for Appraisers and the Public
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.
So the Strip is hands down all about pedestrian traffic, and business activity has everything to do with how much pedestrian traffic a location has. Even those tenants located at the end of a Strip affected area may see 2,000 people an hour but those in the mainstream will see many times that number.
If you leave the pedestrian-oriented Las Vegas Strip, vehicular traffic becomes important again. If for example you are on Paradise Road vehicle traffic is an important indicator of your business activity and success. Corner-oriented retail buildings are seen by more people from their vehicles and they are generally more popular. There is some pedestrian traffic on Paradise Rd., but it’s not significant. If you had to survive on pedestrian traffic on Paradise Road you may not survive in business at all.
Being on or just off the University of Nevada Las Vegas (UNLV) campus puts you back into a moderately strong pedestrian based environment. Many students park off-campus and walk from one building to another. If you are a business located on for example Maryland Parkway you can predict how many pedestrian students there are who can potentially be customers. It’s a significant number and they can make a difference.
Changing vehicular traffic to pedestrian traffic is what malls and shopping centers are all about. If you get shoppers out of their automobiles and walking around in a mall they buy more. They may stop and shop at 4 or 5 retail stores that they would have never stopped for and then they may go to a a fast food or a sit-down restaurant.
The amazing thing about Las Vegas Strip pedestrian traffic is that it continues hour after hour with tens of thousands of new potential customers through most of the day, it’s like mall traffic at its like having Christmas traffic in the mall but every hour of every day. That’s an amazing opportunity if you have something to sell that people want to buy. It still isn’t easy to sell things to people that they really don’t wants to buy, but if you have something they do want you may end up finding that you have long waiting lines.
Of course Strip retail rental rates reflect all of that business potential if you can sell several times what you normally would you should expect to be quoted a rate that is several times what you would normally pay. If you want to run a normal business on Tropicana Avenue or Flamingo Road, which have strong vehicular traffic, that’s one thing, but if you want tens of thousands of pedestrians at the front of your store or restaurant every day that’s another.
For more appraisal information contact Glenn J. Rigdon MA, MRICS, IFAS, ASA who is a Las Vegas / Henderson Nevada based broker and appraiser who can be contacted via email or via his business website known as Appraiser Las Vegas (http://www.appraiserlasvegas.com), or http://www.horizonvillageappraisal.com, or you can also click on “Contact Us” on the home page of this website or visit my public profile at LinkedIn at http://www.linkedin.com/pub/glenn-rigdon-ma-mrics-asa/1a/30b/879/
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