The latest headline market revenue data, Strip gaming revenue from September, released last month by the state Gaming Control Board, shows a year-over-year decline of just 3.58%, the slimmest decline year-to-date, and hotel occupancies have been improving, if not room rates. For the rest of the year, Strip gaming revenue--the amount gamblers lose in casinos--is expected to show YOY increases thanks to a steep drop-off in tourism in the final months of 2008.

"Las Vegas Strip operators have seen profits evaporate quickly as revenue has declined since 2008," concludes the CBRE report. "Conversely, profit potential on the upside should be equally strong when the Strip does recover, but moderate over time as some operators will have to make good on deferred capital costs and begin to push revenue enhancement--re-hiring in key areas, and re-focusing on development and other corporate strategies. Newer properties and those with less deferred capital expenses will fare better in a recovery, as they will not have to play catch-up on those costs."

That having been said, the forecast is for there to be some lag effect for the Las Vegas Strip to any national economic recovery. "To combat the drastic revenue declines, Strip operators have engaged in practices such as cost cutting, discounting, increasing 'complimentaries' (comps) and tightening casino credit standards to maximize profitability," concludes the report. "GGG believes there will be some lag effect for the Las Vegas Strip to any national economic recovery, as some of these strategies become counterproductive to increasing profitability during an upturn. As such, operators will continue to face most of the challenges in 2010 they faced in 2008 and 2009."

Dubai World, a conglomerate controlled by the Dubai government, last week asked creditors for a six-month breather from payments on some $60 billion in debt. The situation is not expected to directly affect CityCenter because DubaiWorld had already fully funded its equity commitment to the project.