Survey shows furniture industry wants showroom

Erin Neff

Tuesday, Dec. 19, 2000 | 3:15 a.m.

A new UNLV study shows widespread national support from retailers for planned wholesale furniture showrooms here.

The study, conducted by UNLV's Center for Business and Economic Research, indicated 80 percent of retailers surveyed would likely visit the International Furniture Mart LLC's planned showrooms in Las Vegas.

"The study is exactly what I expected," said Jack Kashani, an investor and spokesman for the Los Angeles investment team planning a massive $500 million project in downtown Las Vegas. "We're going forward with the project in full force."

Results of the study, released today by the group's public relations firm, Quillin & Co., indicate decent support for what will be the West Coast's largest furniture showroom.

About 53 percent of respondents said they would benefit from the manufacturers' showrooms offering year-round access. More than 50 percent of retailers surveyed have visited Las Vegas at some time and have an overall favorable opinion of the area, according to the study.

Retailers ranked hotel room availability, reasonable hotel rates and convenient hotel locations as the three most important amenities they associated with showroom locations. Airline ticket prices and airline service ranked fourth and fifth of the top five amenities retailers want.

R. Keith Schwer, director and professor of economics at UNLV, who supervised the study, said he believed the results indicate there would be good use of the showrooms.

"This survey proves the existence of demand among furniture industry retailers for a showroom and convention venue in Las Vegas," Schwer said in a Quillin & Co. press release. "Consequently, manufacturers will follow the demand in becoming users and tenants of this complex."

Kashani said his group has commissioned another university study to show the economic impact the furniture market could have on the city.

"We think it will really be a good project for the city of Las Vegas," Kashani said.

The UNLV survey, conducted from Oct. 10 to Nov. 13 under the supervision of L.A. Mayo & Associates, interviewed 317 furniture and related industry retailers nationwide.

The furniture mart is planned to have two retail malls on a 56-acre site on Union Pacific Railroad property downtown.

The project has already scaled back original plans by four stories in an effort to reduce the rents charged to retailers from $2 per square foot to $1.25 per square foot.

Roughly 40 retailers have expressed interest in renting about 250,000 square feet of floor space.