Property values on the Strip have plunged in recent years, and some could even argue Genting paid too much, said John Knott, global head of gaming for the real estate brokerage Newmark Grubb Knight Frank.
Knott said Genting got a good deal partly because the project site is so big. It's the largest contiguous undeveloped property on the Strip. As a result, a buyer would "certainly expect a size discount," Knott said.
But by his count, there are six other properties on the Strip with enough land for a new resort. If Genting's resort and the nearby SLS Las Vegas on the site of the former Sahara prove successful, other projects could follow.
The Genting deal sets a new low-value mark for Strip land acquisitions, but its planned megaresort already has raised nearby property values, said commercial real estate broker Mike Mixer, managing partner of Colliers International's Las Vegas office.
"Land buyers from here on out should expect to pay more per acre to be on the Strip," Mixer said.
The Genting Group isn't licensed in Nevada, and because it's a foreign company, it is going to take considerable time and energy -- and billable hours -- for Genting to make its way through the state's regulatory process, which most applicants say is the most arduous in the world.
The attorneys who stand to gain the most will be from Lionel Sawyer & Collins, the law firm that will advise Genting on regulatory matters.
For the rest of the legal community, the outlook is uncertain. Local attorneys were divided on whether there might be spin-off work that results from the Genting project.
Wynn should be happy, right? He was one of the critics who complained that the abandoned Echelon construction site was a community eyesore.
But Resorts World could prove to be a mixed bag for him.
Genting's coming to town could be a positive in that it brings new money to the Strip, new tourists to the city and new life to an abandoned property. The arrival of an Asian company to Las Vegas also signals the reversal of big-time American players setting up shop in Macau.
But will Wynn be happy about a respected competitor moving in right across the street from him?
He has never shied away from competition. But only time will tell what a big competitor -- and an Asian one at that -- moving in on his territory will mean.
Airlines go where there's demand. And conventional wisdom suggests that with a new resort, there will be new demand for flights to Las Vegas.
Resorts World is expected to bring online 1.2 million new room nights per year.
Still, that doesn't mean new flights are guaranteed. Air carriers will likely analyze the impact of Resorts World over the next several years and monitor their competitors before adding new schedules.
The big question will be whether Genting's plan to market the property to middle-class Chinese travelers will press international air carriers to provide nonstop flights between China and Las Vegas. State officials have tried to convince airlines to try a route for years, but so far have been unsuccessful.
The only current nonstop flights to Las Vegas from Asia are three weekly round trips on Korean Airlines from Seoul, South Korea.
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