September 14, 2023 at 10:57h
Last updated on: September 14, 2023, 10:57h.
Event organizers at the Las Vegas Convention Center will soon face higher rents for hosting their exhibitions at the 2.5 million-square-foot facility located just a block east of the Las Vegas Strip.
The Las Vegas Convention Center, owned by the Las Vegas Convention and Visitors Authority (LVCVA), will require higher rent fees for event organizers starting in 2026. The LVCVA is a destination marketing organization that promotes Las Vegas as an ideal location for large-scale conventions. In addition to the nightly hotel room occupancy tax, the LVCVA generates revenue by managing the Convention Center.
A recent report commissioned by the LVCVA revealed that the agency had not adjusted rates to account for inflation over the past five years. LVCVA Chair Steve Hill emphasized this during an August meeting, highlighting the lack of rate increases during that period.
In the previous fiscal year, the LVCVA earned around $63.6 million in facility use income, a small portion of its overall $463.4 million budget.
During a recent meeting, LVCVA commissioners approved rent rate hikes for the Las Vegas Convention Center, effective January 1, 2026.
Under the new rates, the facility’s rent will increase from 35 cents per square foot per day to 36 cents, with an additional one cent increase each year until 2030, reaching 40 cents per square foot.
The LVCVA estimates that these moderate increases will generate over $5 million in additional annual revenue. The rent report indicates that even with the increases, the Las Vegas Convention Center will still offer rates below the national average for premier convention rooms.
LVCVA commissioners have instructed their staff to inform the Convention Center’s annual exhibitors about the upcoming rent hikes.
Convention Center Updates
The Las Vegas Convention Center is one of the largest convention spaces globally, boasting a 2.5 million-square-foot complex. In late 2020, the West Hall, an additional 1.4 million square feet of convention space, was completed at a cost of $1 billion.
The older areas of the Las Vegas Convention Center campus, including the North, Central, and South halls, are currently undergoing a $600 million renovation project aimed at modernizing and refreshing the facilities. The project includes the construction of a new parking lot and a Vegas Loop station outside of Central Hall.
Inside the Convention Center, visitors will find new technological features such as interactive displays, digital pylon signs, wayfinding boards, and information kiosks. Additionally, plans are in progress for an expansive Grand Lobby between the North and Central halls.
The completion of the West Hall opened up vacant land that was previously occupied by the Riviera. The LVCVA is currently in the process of selling approximately 10 acres of this land for $125 million to real estate developers Brett Torino and Paul Kanavos, who have not yet disclosed their plans for the property.
Torino and Kanavos have collaborated before on projects such as the Harmon Corner shopping and dining center. They are currently developing “63,” a four-story mall located next to The Shops at Crystals in the CityCenter complex.