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

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

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