Nevada

Las Vegas’ Underlying Multifamily Fundamentals Remain Strong Despite Moderating Growth

by Jeff Shaw February 15, 2023

By Jared Glover, Director of Investment Sales, Berkadia The Las Vegas multifamily market started to feel the effects of higher interest rates alongside persistent inflation as the third quarter ended. Thankfully, properties still experienced trade-outs and overall in-place rent growth, though year-over-year growth began to moderate, coming in near 8 percent. Loss to lease capture remains, although at a slower pace than prior quarters, with average market rent at $1,515. The third quarter also saw a 3 percent decrease in occupancy, setting at 93.6 percent, after experiencing record occupancy throughout 2021. On the transaction front, we have seen a dramatic shift in cap rates. This is a direct result of the Fed’s tightening. Within a six-month span, cap rates widened upwards of 150 basis points — from low to mid-3s to 5 and trending up, depending on product type. The homogenous nature of national cap rates in 2021, with most markets trading in the 3.5 range, seems to have shifted back to historical norms as the primary/coastal markets once again demanded a premium versus secondary or tertiary markes. Both Monterra and the Boulevard traded north of a 5 cap on in-place numbers, speaking to these latest cap rate trends. Just four months ago, a …

February 15, 2023

Industrial Market Reports Nevada Western Western Market Reports

Las Vegas Industrial Market Surprisingly Resilient Amid Economic Headwinds

by Jeff Shaw January 27, 2023

By Dean Willmore, Executive Vice President; Kyle Kirchmeier, Associate; Alex Stanisic, Vice President; and Laura Wilhelm, Senior Field Research Analyst, CBRE Las Vegas’ current industrial market is surprisingly resilient. There is, of course, a possibility of planned projects being put on hold or not moving forward at all due to rising inflation and economic uncertainty, but leasing activity hasn’t slowed. Regardless of never-before-seen rent growth, record-low vacancy and a marked increase in asking lease rates every 60 days, the market still may not have peaked. As of the third quarter of 2022, the average asking lease rate was $1.19 per square foot (triple net), and the overall vacancy rate remained at a very low 1 percent. However, industrial/flex space in the 2,000- to 5,000-square-foot range, which is still dealing with the effects of the pandemic, has shown no noticeable rent growth. Some landlords are even offering leasing incentives to attract tenants. If the market contracts in 2023, smaller tenants in this size range will be the first to see its effects. Nearly half of the 17 million square feet under construction during the third quarter was pre-leased, and nearly 80 percent of those projects were in North Las Vegas. The largest lease of the quarter occurred in the submarket, with …

January 27, 2023

Development Hospitality Mixed-Use Nevada Restaurant Retail Western

LRE & Cos. Reveals Plans for 13-Acre Fernley Promenade Mixed-Use Development in Fernley, Nevada

by Amy Works January 25, 2023

FERNLEY, NEV. — California-based LRE & Cos. has announced plans to develop Fernley Promenade, a 13-acre mixed-use development along Interstate 80 in Fernley. The project will the first shopping center development in Fernley in over a decade. The first confirmed tenant for Fernley Promenade is a 98-room Home2 Suites by Hilton with a swimming pool and fitness center. The development will also feature three junior retail anchors, as well as various dining and shopping options. Retail space, ranging from 1,200 square feet to 20,000 square feet, is currently available for lease. The property can accommodate freestanding buildings with drive-thru, junior anchor and shop space. Shawn Smith and Sean Retzloff of Kidder Mathews will manage leasing for the property.

January 25, 2023

Development Industrial Nevada Top Stories Western

Tesla to Invest $3.6B for Electric Battery, Truck Factories at Gigafactory Nevada Campus

by John Nelson January 25, 2023

SPARKS, NEV. — Electric car manufacturing giant Tesla Inc. (NASDAQ: TSLA) plans to invest $3.6 billion to expand Gigafactory Nevada, an advanced manufacturing campus in the Reno suburb of Sparks that Tesla launched in 2014. The company’s investment will include two new factories — a battery manufacturing facility and a truck factory — that can support approximately 3,000 new team members. At the battery facility, Tesla plans to produce enough of its patented 4680 battery cells for 1.5 million light-duty vehicles annually. The facility will have the capacity for 100 Gigawatt hours (GWh) annually. The truck factory represents the first high-volume factory for Semi, Tesla’s fully electric combination truck that was announced in 2017. The company’s Semi trucks can travel up to 500 miles on a single charge and run on less than 2 kilowatt hours (kWh) per mile, which Tesla says gives companies using commercial transportation a sustainable freight option. The first Semi trucks were delivered in December 2022 to PepsiCo, according to CNBC. Gigafactory Nevada currently spans 5.4 million square feet and represents a $6.2 billion investment for Tesla to date. Annually Tesla produces 7.3 billion battery cells, 1.5 million battery packs, 3.6 million electric vehicles and 1 …

January 25, 2023

Loans Multifamily Nevada Western

Pembrook Provides $38.2M in Financing to Acquire, Renovate Valencia Apartments in Las Vegas

by Amy Works January 23, 2023

LAS VEGAS — Pembrook Capital Management has provided a $27.6 million first mortgage bridge loan and a $10.6 million preferred equity investment for the acquisition and renovation of 127 apartment units located at 1455 E. Katie Ave. in Las Vegas. The name of the borrower was not released. The Valencia Apartments complex features 21 two-story buildings offering a total of 227 units spread across 10.5 acres. Pembrook’s financing allows for the purchase of 127 units (56 percent of the property), including 72 one-bedroom, 49 two-bedroom and six three-bedroom apartments. The financing also provides funds to acquire the additional units over the next 27 months. Upgrades to the units include new flooring, kitchen hardware, lighting and plumbing, as well as the installation of stainless steel kitchen appliances and in-unit washers/dryers. Common-area improvements include modernizing the clubhouse, sports facilities and pool, while providing new fitness equipment for the gym.

January 23, 2023

Acquisitions Multifamily Nevada Western

MG Properties Buys Tribeca North Apartments in North Las Vegas for $81M

by Amy Works January 20, 2023

NORTH LAS VEGAS, NEV. — San Diego-based MG Properties has acquired Tribeca North Apartment Homes in North Las Vegas from The Bascom Group for $81 million. Tribeca North features 312 apartments with available garages and resort-style amenities in a low-density community design. Spencer Ballif, Adam Schmitt and Jannie Mongkolsakulkit of CBRE represented the seller. Bryan Frazier and Blake Hockenbury of Walker & Dunlop secured a Fannie Mae loan for the property.

January 20, 2023

Agora-Mixed-Use-Project-North-Las-Vegas-NV

Market Reports Nevada Retail Western Western Market Reports

Today’s Las Vegas Retail Market Reflects Positive Trends Amid Uncertainty

by Jeff Shaw January 20, 2023

By Cathy Jones, Founder and CEO, Sun Commercial The 2022 Las Vegas retail market can be characterized by a generally positive outlook and some strong trends, even in the face of market uncertainty. A few of these core trends are quite interesting. Market research shows significant upward trends in asking rents, decreases in vacancy and certain key indicators driving this process. When broken down further, we find that these trends are emphasized in certain geographic areas more than others. The Southwest Las Vegas Valley submarket is seeing the greatest change in growth and development, followed closely by Henderson/Southeast. As an example, 93,592 square feet of retail space was constructed in the third quarter alone in the Southwest and Henderson; 91.2 percent of this space was pre-leased. The current amount of net absorption in the total market is 1.3 million square feet year to date. Half of this annual total occurred in the Southwest and Southeast submarkets. These two markets saw an explosion of growth driven largely by the housing boom. As new developments are constructed and homes sold, retail developments expand to meet that growing demand. There is more compartmentalization, however, than in the past with more community-oriented unanchored strip centers dominating the …

January 20, 2023

Acquisitions Healthcare Nevada Office Western

Avison Young Arranges $3.6M Sale of Medical Office Building in Las Vegas

by Amy Works January 18, 2023

LAS VEGAS — Avison Young has brokered the purchase of a medical office property located at 6070 S. Fort Apache Road in Las Vegas. AABECK LLC, an entity of Wound Care Experts, acquired the asset from VUELTA, an entity of a pain management group and former tenant, for $3.6 million. Built in 2008, the 10,000-square-foot property features reserved covered parking, a large waiting room, 12 exam rooms, a break room, billing office and two doctors’ offices. The buyer plans to occupy 5,000 square feet of the facility with the remainder available for lease. Barton Hyde of Avison Young represented the buyer, while Kevin Donahoe of Commercial Specialists represented the seller in the deal.

January 18, 2023

Development Industrial Nevada Western

LM Construction Breaks Ground on $40M Nancy J Industrial Park in Henderson, Nevada

by Amy Works January 13, 2023

HENDERSON, NEV. — LM Construction Co. (LMCC) has broken ground on Nancy J Industrial Park, an eight-building industrial project in Henderson. Each of the eight 40,998-square-foot buildings will offer four nine-foot by 10-foot dock loading doors, two 12-foot by 14-foot grade level doors, 24-foot clear heights and rear loading access. Additionally, each building is divisible to two occupants. Las Vegas-based LMCC is the design-build general contractor for the project. The first two buildings are slated for completion in January 2024. Larry Monkarsh, owner of LMCC and partner in Brass Cap Development, is also acting as the owner/developer of the project, developing as Red Label LV LLC. Chris Lexis and Joe Leavitt of Avison Young | Las Vegas are marketing the project for lease or sale.

January 13, 2023

Market Reports Nevada Office Western Western Market Reports

Las Vegas’ Office Market is on the Road to Quality

by Jeff Shaw January 13, 2023

By Patti Dillon, SIOR, Senior Vice President, Colliers While the key measures of the Southern Nevada economy have improved since the COVID lockdowns, some have improved more than others. The future of the office market is strong, but it will be weighted toward newer Class A mixed-use office assets. Employers are feeling the pressure to attract and retain the best talent in a tight labor market. There are plenty of vacant positions. However, available and willing workers are still scarce, which is driving the need for office locations of employers to be more inviting. According to DETR, Southern Nevada’s office job market added 24,000 jobs between May 2021 and May 2022. Unemployment in the Las Vegas-Paradise MSA was 5.2 percent in May 2022. Over the past 12 months, total employment in Southern Nevada increased by 87,100 jobs, a 3 percent increase. After experiencing a significant expansion last quarter, Southern Nevada’s office market cooled at midyear. Net absorption remained positive, at 45,443 square feet, but did not keep pace with the 129,272 square feet of new development. This lifted vacancy to 12.7 percent this quarter from 12.5 percent one quarter ago. Asking rental rates increased to $2.37 per square foot on a full-service …

January 13, 2023

Newer Posts

Older Posts