Virtually all kinds of restaurants in Las Vegas are experiencing a renaissance of sorts in what has become one of the nation’s most competitive locales for dining out.
“This is as competitive a market as there is,” commercial real estate attorney Jim Haslem told the Las Vegas Review Journal.
To be profitable in a competitive market like Las Vegas, Haslem says restaurant owners must take care when agreeing to leases and not sign leases that exceed about 13 percent of gross revenues and should aim for leases that cost as little as 8 percent of gross revenues.
When the Great Recession struck, many Las Vegas restaurants went under due to being incapable of paying their rents, while remaining profitable.
Haslem said that caused commercial landlords to rethink the rents they charged to restaurants, which now are being offered more viable lease contracts.
Many restaurants also are looking to locate in smaller venues to help keep their operating and lease costs as low as possible. But, they also are taking advantage of patio and other spaces to wring the most profit out of their spaces and commons areas.
As Las Vegas rebounds from the Great Recession, Haslem says more national restaurant chains are looking at Sin City as a place to generate Heavenly profits.
