Starting Point: Lake George, NY
Ending Point: Philadelphia, PA
Distance Traveled: 400 Miles
Today, I had to decide whether to travel directly to Philadelphia or to first drive to Atlantic City, which would end up adding an additional hour of driving to today. I eventually decided to stop at Atlantic City, NJ because of the potential real estate education/adventures and so that I could complete an unquestionable cross-country road trip to the Atlantic Ocean.
Upon entering town, I noticed that most of the prime downtown area is a multi-block outlet area owned by Tanger outlets. The facade designs are very beautiful and in line with the overall character of Atlantic City. Additionally, gambling, shopping, and extravagant resort hotels complement each other very well. and have common themes of materialism and indulgence.
Next, I noticed that unlike Vegas, Atlantic City hotels depend on parking as a major income stream. Unlike hotels in Las Vegas that can forego parking fees because of the outrageous resort fees, Atlantic City hotels can’t really make the case for charging about $20 for resort fees, especially because of the lack of emphasis around the pool. Additionally, unlike Vegas, Atlantic City is a coastal area which has significant control over the parking supply in the surrounding area. Therefore, they don’t need to worry too much about guests opting for nearby free parking and withholding that income from the casinos.
After walking through Caesars Palace to the boardwalk, I noticed a similar style of extravagance which was restrained and limited. At first thought Atlantic City should be doing great: It’s located within a couple hours of several major east-coast cities (New York, Philadelphia), diversified guest attractions (convention center, world-class shopping, entertainment/restaurants, beaches), and world class resorts. However, in my opinion the problem seems to be changing interests/demographics of consumers. Back in the 1980s-1990s, this city would be an absolute hit. However, nowadays well-educated, affluent 20-40 year olds aren’t interested in gambling, tacky facades, unhealthy fair foods, and lined tourist shops with inappropriate t-shirts. Rather, they’re interested in sophisticated, historic downtown/urban areas, healthy restaurants with creative recipes, bars with unique atmospheres, and nature. In fact, I think casinos/gambling are a declining interest that will continue to decline as Americans become more educated and advanced.
A much simpler explanation for the decline can also the half-ass draw of Atlantic City, which pales in comparison to Las Vegas. It’s like a Las Vegas minus the international/national tourists minus the convention center draw, and only about 20% of the size (in terms of hotel rooms).
Along the boardwalk, 90% of the occupied shop spaces were either souvenir/gift shops or fast food/junk food shops. Also, there were tacky businesses such as hookah lounges, liquor stores, massage shops, and more. It’s very disappointing to see such horrible tenants in a area with such potential, but then again when you’re located next to billion-dollar casinos, there’s not much to do except try to complement the extreme materialism and illusion of pleasure that guests are seeking.
Along the boardwalk, at least 40% of the shop space is unoccupied, about 80% is utilized. Based on a brief Loopnet search, rents seem to range anywhere from $36/NNN to $88/NNN on the boardwalk. Perhaps even more disappointing is the Pier shopping mall, a shopping mall comparable to the Caesar Forum shops, which is built on a pier extending out from the Caesars Palace Casino. On the second and third floors, there are many vacant units and it’s obvious that many of the existing stores are performing poorly. It will be interesting to observe how this area evolves over the next 30 years (assuming that the people in charge will be able to actually cooperate with each other and work toward a significant repositioning of the area).
I arrive in Philadelphia around 9PM and briefly walked around the Old City. Unfortunately, not too many of the businesses were open so I ended up coming back early and taking care of some work.
Tonight, I noticed the first gray hair at the top/front of my hair. The emergence of gray hairs is a reminder of my mortality and the limited time we have to live and accomplish our goals. Today as I’m arrived in Philadelphia and was using the restroom I realized a gray hair at the front of my hair, the first place that people see when I’m interacting with them. This is especially concerning because over the past five years I’ve been sacrificing so much for my future, in terms of social relationships, fun activities, my independence and education. In a way, it’s similar to the death of somebody I am close with. When somebody you spend time around with passes away, it’s a sharp reminder of our mortality, and forces us to examine our priorities and the way we’re spending our time. The question is how do I deal with realizing that I have gray hair and it will never be black again. At first thought, I should stop delaying important tasks such as marriage and friendship. Second, I should stop wasting time on trivial matters and wasteful activities. Lastly, I should be very cautious about sacrificing the present. Sacrificing the present is completely unnecessary and never-ending. I’ve sacrificed enough, now just live and enjoy life.
