How long can these businesses stay in the Arts District?

Longtime Arts District resident Brian “Paco” Alvarez has noticed a change in the neighborhood he calls home: what was once more industrial is decidedly more artistic.

“The evolution of those little stores, those electrical shops, the mechanics, all of that, moving out and being replaced by art galleries, cafes, bars, restaurants,” Alvarez said.

With several mixed-use luxury apartment projects being built, the profile of the Arts District is changing from an eclectic, small business-focused area to one that is being targeted for high-price development. Thousands of luxury apartment units, hotel rooms and retail space are in the works for the district, driving up the prices.

The average asking rent for retail space in downtown Las Vegas — which includes the Arts District — has risen by nearly 70 percent over the last five years, to $2.13 per square foot in the second quarter of 2024, according to data from Colliers International.

Now some locals are worried about what businesses and residents will be able to afford to stay in the neighborhood.

‘No longer really for the artists’

Tara Pierce, co-owner of the Main Street Moto motorcycle shop, has done business near the Arts District for 10 years and has lived there for the last 14. She said the area has become a more difficult place to operate.

“The Arts District is no longer really for the artists and the arts,” Pierce said. “There are a lot of businesses that, with all the development and changes that have happened, have had to move out of the Arts District because the lease rates have gone up.”

This sentiment was echoed by Samvel Sardaryan, the owner of Pop’s Automotive, an auto body shop that has been open in the Arts District since 2020. He said he’s seen several other auto body shops forced to move out of the area in the last four years.

“Everybody knows it’s going towards it being gentrified and cleaned up,” Sardaryan said.

Las Vegas City Councilwoman, Olivia Diaz, who represents the area, said the city has made significant investments in the Arts District, including changing traffic patterns, adding more landscaping to provide more shade and installing street lights. She said these investments were made over several years to boost the efforts of artists already changing the reputation of the Arts District and to create a center for locals and tourists to visit in the city.

Other community programs are part of the Arts District’s renaissance. First Friday, which gathers artists and vendors in the Arts District, has been happening the first Friday of each month for more than 20 years, and many local businesses and artists have stayed in the area.

Alvarez, the longtime resident, said First Friday has been a steady part of the neighborhood’s character.

“That’s a really cool thing about the neighborhood, that now you have all these little businesses that help each other out,” he said.

The evolving Arts District

As rental rates increase, more retail space is planned for the Arts District. Several mixed-use residential and retail projects are planned, including a 311-unit apartment project from CEDARst Companies, a 337-unit project from the Southern Land Co. and a 3,000-unit project called Midtown from Z Life Co.

Diaz said adding these apartment projects is the next step in the district’s evolution, since they will create more regular customers who can walk to businesses in the Arts District.

“The natural growing up pattern of any city is to have more density, to have more offerings, is to have more mixed-use, spaces and places for the future benefit of our residents,” she said.

Sardaryan said his rent has increased in recent years but is still manageable. He said he will try to stay in the Arts District for as long as possible.

Both Sardaryan and Pierce say they aren’t opposed to more apartments coming to the Arts District, because these projects can increase the number of shoppers in the area.

“I would really love it to stay in the Arts District. It’s kind of becoming like a staple. People love dropping off their cars and walk around,” Sardaryan said. “I feel like they’re going to eventually get tired of us. But we’re going to be here until then, and we’ll still be here after.”

Contact Sean Hemmersmeier at shemmersmeier@reviewjournal.com. Follow @seanhemmers34 on X.