Thursday, March 14, 2019 | 2 a.m.
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I was rather taken aback by an article in the Feb. 21 edition of the Sun — “LVCVA plans to sell 10 acres on Strip worth up to $300 million” — not because of any controversial content or an outrageous opinion, but by a price tag. Bryan Horwath’s article talked about the 10 acres where the Riviera once stood and explained that because of the land’s prime location, the parcel is one of the most expensive development sites in Nevada history.
What could possibly drive a price up to $30 million per acre? The answer can be found in economies of agglomeration. Nearly three-quarters of Nevada’s population lives in Clark County. Additionally, the Las Vegas metropolitan area has nearly tripled in size since 1990, an incredible feat for a major U.S. city.
Even more amazing is the stark contrast in value across the state. I came across a piece of property for sale in Humboldt County: 40 acres for a shade under $11,000. From $275 to $30 million per acre is quite a jump, but it’s understandable why that jump exists. With rapid population growth and an economy that is thriving and diversifying, it is clear why the lights of Las Vegas are so appealing to people, and by extension why a parcel on the north Strip can sell for so much.
