Yardi’s RentCafe Reviews The Top 10 Completions Of 2015

Rentcafe ReportLas Vegas has never claimed to be one of the big players in the residential construction boom that we’ve seen in recent years all across the US, yet in 2015 the city’s rental market heated up, particularly in the large scale developments sector. Bolstered by employment growth in the hospitality, leisure, and technology industries, the local economy is back in the game – and with it the apartment market.

RentCafe has documented 11 major rental developments with 50+ units that have been completed in 2015, boosting Las Vegas’ rental inventory by more than 2,500 apartments. Are you wondering if this is a lot? Well, you could say that, since it’s more than triple the number that entered the market in 2014 – around 760 rental apartments in 50+ unit buildings.

Aside from being a sign of the much-anticipated recovery of the housing sector, this is good news for the city’s renters as well. The growing number of apartment options has much to do with the relative affordability of the market and with what Las Vegas renters shell out on housing every month – around $840 on average, according to data from Yardi Matrix. Meanwhile, the national average rent has hit an impressive $1,181 in March 2016. Vegas rents are expected to increase 4.2% this year, with job growth following closely at 2.7%.

As to what these new apartment projects bring to the table, they come with all the bells and whistles to cater to all tastes, budgets, and demographic groups, including the young renter cohort – the so-called Millennials – that have taken over the City of Lights in recent times. Here we’ve listed the 10 largest developments completed in 2015 in Vegas (the 376-unit Lyric, with its prime location on the south end of the Strip, smoke-free environment, and resort-style amenities is definitely a must-see.

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Index finds that local businesses have become more confident in the near-term future

unlvbschoolThe Southern Nevada Business Confidence Index, constructed by the Center for Business and Economic Research (CBER) at the University of Nevada, Las Vegas (UNLV), increased by 3.4 percent on a quarterly basis from 130.7 to 135.1 in the first and second quarters of 2016, respectively (Figure 1). The index includes five components: business expectations of (i) general economic conditions in Nevada, (ii) sales, (iii) profits, (iv) hiring, and (v) capital expenditures. The index remains well above 100, which implies that respondents, on average, feel more positive than negative about the five components. Moreover, the index has exceeded 100 for the past five years. All five components also exceeded 100 for the second quarter of 2016 (Figure 2). The index values for business expectations of economic conditions, sales, profits, hiring, and capital expenditures scored 142.7, 146.2, 140.2, 125.4, and 121.0, respectively.

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Nelson Tressler & Michael Zobrist Of NGKF Continue Retail Activity

Newmark1 logoSoulfish Poke, LLC leased 1,430 square feet of retail space for 60 months at 8680 W. Warm Springs Rd., Ste. 130, from Ravan Orange Grove, LLC.  Total consideration was $199,656.60. Nelson Tressler and Michael Zobrist of Newmark Grubb Knight Frank represented the lessor in the transaction. Jakke Farley of Virtus Commercial Real Estate represented the lessee in the transaction.

The approximate aggregate value of this lease transaction is $2.33 per square foot.

Haircuts for Kids, LLC dba Cookie Cutters leased 1,412 square feet of retail space for 64 months at 7345 S. Durango Dr., Ste 110, from DM Rhodes Ranch, LLC.  Total consideration was $166,422.24. Nelson Tressler and Michael Zobrist of Newmark Grubb Knight Frank represented the lessor in the transaction.  Nela Anzalotti of Logic Commercial represented the lessee in the transaction.

The approximate aggregate value of this lease transaction is $1.84 per square foot

PENTA Group Continues To Expand In Current Environment

Penta small logoThe PENTA Building Group (PENTA), a leading commercial contractor headquartered in Nevada, announced today the hiring of five new employees for its Las Vegas and California offices, bringing its total workforce to 192 employees. The Las Vegas additions include superintendent David Bowers, project manager Geof Ulep, project engineer Chase Roberts and accounting assistant Tara Stearns. In addition, the company promoted Vince Bigay in the Las Vegas office to superintendent. PENTA also hired superintendent Marc Hall in Palm Springs, California.

Bowers brings 21 years of experience in the construction industry to PENTA. He previously served as a superintendent for Tutor Perini Corporation in Sylmar, California.

Prior to taking on his new position, Ulep served as project manager for Level 10 Construction in California. He has worked in construction for 15 years.

Roberts earned his new position after working as an intern with PENTA. He recently graduated from Arizona State University with a bachelor’s degree in construction engineering.

Stearns offers a decade of accounting experience. Prior to joining PENTA, she worked in accounts payable with NorthStar Contracting Group in Las Vegas.

Bigay has risen through the ranks during his more than 10 years with PENTA, taking on his new role after serving in positions such as journeyman and general foreman. He has worked with the company since 2002.

Hall has worked in the construction industry for 28 years. His previous experience includes working with companies such as Hall Construction Co. and Rudolph and Sletten in Redwood City, California.


Xceligent & CALV: Q1 Advisory Board Report Shows All Property Types Gaining Ground

X logosoozi jones A report released today by Xceligent and the Commercial Alliance Las Vegas (CALV) shows the office, industrial and retail sectors of the commercial real estate market in Southern Nevada continued to gain ground during the first quarter of 2016.

“For the most part, we picked up in 2016 where we left off in 2015 – with steady gains across the board in our commercial real estate market,” said 2016 CALV President Soozi Jones Walker, CCIM, SIOR, and a longtime local commercial real estate broker. “Commercial real estate activity throughout Southern Nevada is growing along with our local economy.”

According to the latest quarterly report from CALV and Xceligent, the industrial market continued to lead the local recovery, absorbing 916,805 square feet of space during the first quarter of 2016 to lower its local vacancy rate to 6.0 percent. This follows a strong 2015, when nearly 3.4 million square feet of local industrial space was absorbed. With vacant spaces filling up rapidly, Walker said demand for local industrial space could exceed the available supply by the end of 2016.

For the first time in years, Walker said local developers are building large warehouses “on spec,” even before they have tenants lined up to lease the space. She added that “it’s a good sign for Southern Nevada and our commercial real estate industry that these bets are paying off” and that these new developments are proving to be successful.

Walker said the local retail market was also on the upswing during the first quarter, absorbing 406,173 square feet of space and seeing its vacancy rate drop to 8.2 percent. At the same time, lease rates have been increasing over the past year or more.

According to Tina Reith, director of analytics for Xceligent in the Las Vegas market, four former Fresh & Easy stores were listed as vacant during the first quarter, accounting for more than 60,000 square feet of available space in the local retail market. On the other hand, two former Target locations were leased to the Southern Nevada Health District and to Burlington Coat Factory, absorbing more than 160,000 square feet of space.

Other recent retail highlights include IKEA preparing for its May 18 opening of what is expected to be the largest single store of any kind in Nevada. Meanwhile, popular restaurant chains like Cracker Barrel, Dave & Buster’s and Chick-fil-A made news for announcing their first Southern Nevada locations.

In the office market, Walker said vacancy rates dropped to 18.4 percent in the first quarter, but remained higher than historic norms.

The office market absorbed more than 169,000 square feet in the first quarter, with more than 100,000 square feet of that space being leased by United Health Group for a new Southwest Medical Associates health care clinic at 4750 W. Oakey Boulevard in the middle of Las Vegas.

The local office market has been the slowest to recover from the economic downturn. In recent years, CALV leaders have been reporting a “flight to quality,” with office tenants moving to newer spaces in locations they generally consider to be more desirable, leaving older, usually lower-priced office spaces in more established parts of town with increasing vacancy rates. But Walker sees signs of this trend leveling off, with more tenants leasing space in central locations as lease rates continue to rise for newer space in suburban areas.

Xceligent, a rapidly growing provider of commercial real estate information locally and nationally, partners with CALV and local commercial real estate market leaders through their Quarterly Advisory Boards to produce quarterly reports on market trends and conditions in the office, industrial and retail markets in Southern Nevada. The report released today covers activity through the first quarter of 2016.

Walker, whose professional designations include being a Certified Commercial Investment Member (CCIM) and a member of the Society of Industrial and Office REALTORS® (SIOR), is one of dozens of leading local commercial real estate brokers who serve on advisory boards that help verify and produce these reports. She thanked her fellow brokers and others for sharing their time and expertise to help verify this data and to ensure these reports are the most accurate overview possible of the local market.


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