Category – April 2012
Local industrial vacancy rates fell to 16.3% in the first quarter, or 0.2% less than a year prior, reports RCG Economics. Transportation and warehousing gained 1,300 jobs during the last 12 months during which no new industrial space was completed. Yet, a return to market normalcy is still far off. “The valley’s industrial real estate recession continues to move sideways, as the job market remains less than robust,” said RCG principal John Restrepo. “There was 100,400 square feet under construction in the first quarter, which is essential for the market’s return to a healthy supply-demand balance.”
Sienna Foods signed a 3-year, $228,816 lease for 5,984 square feet of light industrial space inside 12-year-old Koll Business Center, on 40 acres, at 6125 S. Valley View Blvd., Suite D, in Las Vegas. Colliers International’s Spencer Pinter represented the lessor, Valley View I, II & III LLC; Saunders Realty’s Brad Saunders represented the tenant. The reported average rent equals $1.06 per square foot triple net.
Barneys New York’s creative ambassador-at-large Simon Doonan will host the Commercial Real Estate Women of Las Vegas’ (CREW-LV) fifth annual charity event benefiting The Shade Tree on Thursday, May 10, 2012 from 11:30 a.m. until 2:30 p.m. Tickets are $50. The fashion show will be emceed Doonan, and styled by Barneys, with 11-year-old signer Bobbi Alyssa providing entertainment. The luncheon is being catered by FIRST Food & Bar inside The Shoppes in The Palazzo. An after-party will take place inside Barneys New York with an exclusive meet and greet with Doonan. For tickets, register online here or fax in a registration form to 702-798-8653.
Significant local office occupancy gains and rent growth will remain elusive for several more quarters, as companies rely on underutilized space in their existing offices to house new hires, said Marcus & Millichap. Through 2012, lenders will continue to clear balance sheets, recognizing the likelihood for soft conditions to persist over the foreseeable future. Prices illustrate the depth of distress in Las Vegas, with the median roughly 70% below pre-recession levels.
The valley’s fragile office market showed a small but significant improvement in the first quarter, reports RCG Economics. There was 39,900 square feet of positive absorption during the first three months of 2012. It marks only the third instance where net absorption has been positive in the last 17 quarters since the end of 2007. In comparison, there was 223,985 square feet of negative net absorption during fourth quarter of 2011. “The market appears to be stabilizing compared to this time last year,” said John Restrepo, principal of RCG Economics. “It’s a good sign that certain product and market niches appear to be stabilizing, but the macro picture remains troubling.”