Harley-Davidson plans $18 million Strip dealership

The Hogs are coming to the Strip, where Las Vegas Harley-Davidson plans to build a new $18 million flagship dealership in hopes of tapping into the pool of 40 million annual Las Vegas visitors.

The 50,000-square-foot, two-level building is slated for a 5.25-acre site near the “Welcome to Fabulous Las Vegas” sign on the south end of the Strip, next to McCarran International Airport. The project price includes $8 million for the land, said Don Andress, Las Vegas Harley-Davidson president.

This new Harley-Davidson dealership will replace the 70,000-square-foot facility at 2606 S. Eastern Ave. in Las Vegas.

Andress and Tim Cashman, Las Vegas Harley-Davidson vice president, said they have been looking for a Strip site for six or seven years but noted the per-acre cost of $30 million to $40 million was too costly.

Andress and Cashman said they’re projecting an opening in October 2014, with construction starting in December.

“We think having a store close to the Strip will help,” Andress said. He noted the other store at Eastern and Sahara is 2½ miles from the Strip.

The duo also have three other Harley-Davidson dealerships — in Henderson, western Las Vegas and the St. George, Utah, area. The Red Rock Harley-Davidson dealership at Rainbow Boulevard and Sahara Avenue in the western valley is the biggest at 104,000 square feet.

They also control 10 small Harley-Davidson stores in Las Vegas called “AROs” for alternative retail outlets, where everything from T-shirts and caps to shot glasses and key chains bearing the Harley-Davidson logo are sold. Motorcycles are not sold or serviced at these retail outlets.

Andress and Cashman project the planned new flagship will boost revenue by 20 percent over the current Eastern Avenue site thanks to anticipated increased sales of new motorcycles, rentals, accessories and clothing.

Andress said 2012 total annual sales were about $60 million, which were 10 percent to 15 percent more than in 2009 when the economy suffered. Annual sales peaked at $80 million in 2005, a huge spike from sales of $3.7 million in their inaugural year in 1995, Andress said.

Both said the Strip location will draw tourists from the major hotel-casinos, noting they expect international customer traffic from Europe and Asia.

Cashman said the new dealership will be state-of-the-art, with attractions such as a rigid-mounted motorcycle to give visitors who don’t own one a chance to get a feel of what’s it like to ride one.

And the new dealership can be a big draw for locals who live in the southwest section of the Las Vegas Valley, they said.

“We’re moving to a part of the Valley that’s not as well-served,” Cashman said.

There are about 10,000 Harley-Davidson motorcycles in use in the Las Vegas area, they said.

Contact reporter Alan Snel at asnel@reviewjournal.com or 702-387-5273.