Updated September 14, 2023 - 8:53 am
The Las Vegas Convention and Visitors Authority board of directors on Tuesday authorized rate increases for convention center space that will generate more than $5 million in additional revenue by 2030.
The new rate will begin Jan. 1, 2026, and increase by a penny per year through 2030. The LVCVA currently charges 35 cents a square foot per exhibit day. That will increase to 36 cents on Jan. 1, 2026, and advance annually to 40 cents a square foot by Jan. 1, 2030.
Even with the new rates, which are going up as crews complete a $600 million renovation to the convention center’s North, Central and South halls by 2025, the Las Vegas rates will be less expensive than most of the nation’s major convention centers.
A report to the board said Convention Center lease rates have not kept pace with inflationary costs. Lease rate adequacy is necessary for the construction, renovation and operation of a first-class convention facility, the report said. The proposed rates also are believed to be reasonable within the competitive landscape.
The LVCVA routinely rents exhibition halls, meeting rooms, concourses and lobby space to various trade shows, conventions and meetings. Some of the larger shows or those conducive to outdoor exhibits also rent space in parking lots.
In the 2023 fiscal year, the LVCVA generated $67 million renting space, including $35.6 million for exhibit halls, meeting rooms and parking lot grounds. The balance is generated with paid parking fees, food and beverage sales, data services, contractor services and advertising.
The LVCVA’s convention sales team has communicated the upcoming rate changes with major building customers.
In other business, LVCVA President and CEO Steve Hill told board members that adjustments are ahead on the contract to sell 10 acres where the Riviera once stood to developers Brett Torino of Las Vegas and New York’s Paul Kanavos for $125 million.
Hill explained that fill dirt beneath the ground where the Riviera was imploded cannot be used for the project Torino and Kanavos have in store for the site. The LVCVA is negotiating to mitigate the problem and will likely bring a solution to a board meeting later this year.
History of Las Vegas Convention Center rates
Rates have changed dramatically for exhibit space at the Las Vegas Convention Center over the years. Past and future rates:
April 1, 1959 5 cents per net square foot per show day
Jan. 1, 1987 15 cents per net square foot per show day
Aug. 1, 1998 20 cents per net square foot per show day
Jan. 1, 2002 25 cents per net square foot per show day
July 1, 2009 29 cents per net square foot per show day
July 1, 2016 33 cents per net square foot per show day
July 1, 2018 35 cents per net square foot per show day
Jan. 1, 2026 36 cents per net square foot per show day
Jan. 1, 2027 37 cents per net square foot per show day
Jan. 1, 2028 38 cents per net square foot per show day
Jan. 1, 2029 39 cents per net square foot per show day
Jan. 1, 2030 40 cents per net square foot per show day