Survey Shows Real Estate Optimism
The Commercial Real Estate Industry Confidence Survey, recently released by McDonald Carano Wilson, Restrepo Consulting Group and Colliers International-Las Vegas, reveals that members of the commercial real estate industry are optimistic about the economic and market conditions in Southern Nevada. Thirty-eight percent of respondents identified the lack of land availability as the predominant issue impacting their businesses. However, most are planning to purchase more land in the upcoming year. Of these, 38 percent believe land prices will stay relatively flat over the next 12 months. Other findings include:
• 62 percent said that they plan to expand their company.
• 38 percent said the most effective way to improve profitability is sales/marketing.
• 34 percent expect to see price/rent appreciation between 3 percent and 4 percent during the coming year.
• 69 percent expect office prices/rents to increase.
• 86 percent anticipate industrial prices/rents will rise.
• 66 percent indicated they believe retail prices/rents will increase.
The survey was distributed to 1,500 developers, lenders, contractors, brokers, land owners and investors working in the commercial real estate industry in Southern Nevada.
Car Rental Facility Nears Completion
PCL Construction Services plans to complete the Consolidated Car Rental Facility for McCarran International Airport by January 2007. PCL has been working on the $123 million project since the first quarter of 2004, when it broke ground on the 68-acre site at Gillespie Avenue and Warm Springs Road, three miles south of the airport. The facility will include 2 million square feet of buildings, including a three-story, 4,500-space parking structure, an 111,000-square-foot, two-story customer service building, three maintenance facilities and a 1.8 million-square-foot parking lot. Forty shuttle buses will transport car rental customers from the facility to the airport.
LaPour Partners Breaks Ground
LaPour Partners, a commercial real estate development firm headed by developer Jeff LaPour, recently announced the groundbreaking of Decatur Crossing Phase III, a two-story hybrid product totaling 114,000 square feet. The project is situated on 6 acres at Decatur Boulevard and Sunset Road in southwest Las Vegas, within the 40-acre Decatur Crossing business park. The first floor of the building will contain 69,500 square feet of flex space with grade-level loading capabilities, while the second floor provides approximately 42,200 square feet of office space. KKE/HFTA Architects is the architect of record and TWC Construction is the contractor. Key Bank Real Estate Capital financed the project for $14.1 million.
DP Partners Breaks Ground in Stead
DP Partners has begun construction of its newest speculative building – a 230,550-square-foot distribution and warehouse facility at Sage Point Business Park in Reno. The front-loaded facility features 30-foot ceilings, bay spaces measuring 50 feet by 50 feet, parking for 182 vehicles and 3,000 amps of electrical service. The building is designed to serve either as a multi-tenant facility, accommodating tenants requiring a minimum of 45,000 square feet, or as a single-tenant facility. The building, which carries a foreign trade zone designation, is scheduled for completion in March 2007. With more than 2 million square feet of potential build-out, the 120-acre Sage Point Business Park presently contains five buildings totaling 1.5 million square feet.
