The recent problems in travel and tourists following the Sept. 11 terrorist attacks, already are starting to subside. "The history of Las Vegas has seen a very strong growth pattern," according to Grubb & Ellis researchers. "The only flat growth period came during the energy shortage of the late 1970s. This would suggest today's transportation issues, although psychological, would have a similar effect."

The city rolls with the punches, no matter where they come from. "Las Vegas is a very resilient community that tends to reinvent itself in times of hardship," researchers say. "Today's issues should not be any different."

Indeed, a decline in rents and demand will provide buying opportunities for well-capitalized investors, the report notes. "As always, there will be owners who are prepared for a decline," Grubb & Ellis notes. "But just as surely, there will be those that are not prepared for a downturn and will be forced to sell.