News Archives: 2007
RETAILING: And many happy returns
Hubble Smith / Las Vegas Review Journal
December 27, 2007 - Packed with merchandise, Juana Martinez stood in line with about 30 other people at the Centennial Center Kohl's department store Wednesday to return gifts and take advantage of after-Christmas sales.
She held a canister set and decorations for her new house along with some apparel items that were marked 50 percent off. Martinez' mother stood behind her with a pillow, a vase and artwork.
Read More >>
Data point to workplace housing shortage in 2009
Brian Wargo / In Business Las Vegas
December 14, 2007 - With Las Vegas having more than 29,000 homes, townhouses and condos on the market, the Southern Nevada Home Builders Association released a report last month that the region would have a shortage of workforce housing by 2009.
The report, drafted by Las Vegas consulting firm Applied Analysis, said it's possible because of the opening of resorts on the Strip in 2009 and 2010. The creation of jobs will fuel the demand for migration to Las Vegas and the need for more homes, the report said.
Read More >>
In Business Q and A with John Restrepo
Brian Wargo / In Business Las Vegas
November 30, 2007 - Former New Orleans resident John Restrepo runs the oldest Nevada-based economic consulting firm in the region. Restrepo Consulting Group, formed in 1997, works on behalf of local governments, developers and the resort industry to study the feasibility of projects and what their economic effect would be. It also tracks trends in the office, industrial, land, retail, and housing and condo market.
Restrepo's firm has had clients such as Howard Hughes Corp., American Nevada Company, Las Vegas, Henderson, North Las Vegas, Clark County, MGM Mirage, Boyd Gaming, the Regional Transportation Commission and Southern Nevada Regional Planning Coalition.
Read More >>
Luxury condos also face slump
Brian Wargo / In Business Las Vegas
September 7, 2007 - The credit crunch, slowdown in appreciation and rising defaults that have plagued the single-family home sector in Las Vegas are looming as problems in the luxury condominium market, analysts said.
The high-rise and mid-rise condo markets continue to weaken as demand has softened and supply continues to increase - a problem that will worsen as more and more projects come on line in the next year, analysts said. Given the current pace of sales in the resale market, several years of inventory remain.
Read More >>
Pinnacle Las Vegas again changes contractors
Tony Illia / Las Vegas Business Press
September 7, 2007 - The third time is a charm. At least, that is what the developers of the proposed Pinnacle Las Vegas are hoping. The Falconi Group recently named its third general contractor for the planned $740 million, 1,100-unit condominium-hotel development at Tropicana and Cameron avenues, across from The Orleans. Dick Pacific Construction, a unit of Pittsburgh-based Dick Corp., has replaced Marnell Corrao Associates as builder.
Read More >>
One Queensridge Place readies for debut
Tony Illia / Las Vegas Business Press
September 7, 2007 - One Queensridge Place is fit for a queen. The twin 18-story residential towers debut this month at Rampart Boulevard and Alta Drive, across from the Suncoast. Residents move in starting Sept. 15.
The $400 million development is among the first to bring luxury vertical living to Las Vegas' suburbs. Perini Building Co. is general contractor.
Read More >>
Valley problems require vision
Brian Wargo / In Business Las Vegas
August 31, 2007 - Las Vegas needs a common vision to overcome problems with expensive housing, an undereducated workforce and a congested transportation system if it wants to diversify its economy.
That's a theme that resonated last week with business leaders, elected officials and academics who participated in a two-day roundtable discussion on how to better diversify Las Vegas' economy beyond gaming.
Read More >>
Q2 Report: Industrial Vacancy Drops to 4.4%
Brian Miller / GlobeSt.com
August 16, 2007 - Vegas Valley industrial vacancy at mid-year stood at 4.4% while the average asking rate stood at $0.82 per sf, according to two recently released second quarter reports, one by Applied Analysis and another by Restrepo Consulting Group and Colliers International.
According to which report you read, industrial vacancy either fell from 4.6% at the end of the first quarter or rose from 4.3%. With regard to rates, the reports agree that the average asking rate is up $0.01 from the end of the first quarter.
Read More >>
Several new projects helping fuel downtown high-rise enthusiasm
Tony Illia / Las Vegas Business Press
August 3, 2007 - Downtown Las Vegas is bristling with renewed energy, excitement and enthusiasm. Projects are sprouting up like dandelions through sidewalk cracks as investment dollars make the area vital and relevant once again.
Read More >>
Industrial vacancies remain low
Hubble Smith / Las Vegas Review Journal
July 24, 2007 - Las Vegas' industrial market posted another strong quarter as vacancy rates remained relatively low at 4.4 percent, a local real estate observer said.
Vacancy was lowest in warehouse and distribution space (2.6 percent) and highest for flexible research and development space (11.6 percent), a second-quarter report from Restrepo Consulting Group and Colliers International shows.
Read More >>
Office vacancy edges upward - Boom in supply outstrips demand, new report notes
Hubble Smith / Las Vegas Review Journal
July 17, 2007 - Kenneth Smith likes to see office vacancy around 6 percent to 8 percent, but he get developing projects in Las Vegas even when rates were at 12 percent or 14 vacancy levels and he did just fine.
That's why Glen, Smith & Glen is proceeding with building permits next week to develop the second 20 acres at The Park at Spanish Ridge, bringing another 350,000 square feet of office space to southwest Las Vegas Valley.
Read More >>
Downtown office market among nation's best
Tony Illia / Las Vegas Business Press
July 13, 2007 - Las Vegas had the nation's fifth-lowest downtown office vacancy rate in the second quarter, topped only by Charlotte, N.C., Manhattan and Boston, according to CB Richard Ellis Group.
"Demand for office space remains strong in the Las Vegas market with net absorption on pace to match or exceed that of 2006, which achieved record high levels," said Randy Broadhead, senior vice president at CB Richard Ellis, Las Vegas.
Read More >>
Retail Resurgence - Nevada's Robust Market
Tony Illia / Nevada Business Journal
July 2007 - Nevada’s increasing population, economic growth and job employment have created high demand among local and national retailers vying to service the state’s ever- expanding population and business base with a variety of new shops, stores and services. State unemployment hovers around 4.3 percent, well below the national average, despite adding 103,884 new residents over the last year. Nevada has led the nation in job growth for the past three consecutive years, most recently adding 63,000 private sector jobs. Clark County, which now accounts for 71.48 percent of Nevada’s population, is helping to prime the state’s economic engine with 3,500 new residents a month.
Read More >>
Nevada's Industrial Demand Fuels Growth
Kathleen Foley / Nevada Business Journal
July 2007 - Users of industrial space have discovered the advantages of locating in Nevada, from national companies utilizing Reno/Sparks as a distribution hub for the western U.S., to resort-related enterprises serving Las Vegas’ casinos and conventions. However, this popularity comes with a price, as increasing demand for industrial facilities, coupled with a shortage of available land, has raised lease rates in both ends of the state and caused some concerns about the future of the market.
Read More >>
Condominium demand subsides, projects suffering
Tony Illia / Las Vegas Business Press
June 8, 2007 - The predictions in 2004 and 2005 that Las Vegas couldn't absorb all the condominium projects that were proposed are coming to fruition.
Nearly one-third of the units in proposed luxury condo and condo hotel projects have been stalled or canceled, according to a local analyst.
The report from Restrepo Consulting Group is more evidence of a condominium slowdown that has shown up in other data as well.
Read More >>
Morgan Stanley acquires Hughes Center
Tony Illia / Las Vegas Business Press
June 5, 2007 - Hughes Center has long been the valley's premier power-business address. The Las Vegas Chamber of Commerce and the Nevada Development Authority, until recently, called the 115-acre business park home. It had previously held the only genuine Class A office space available in Southern Nevada. It is also home to the Wells Fargo Tower -- Las Vegas' first high-rise office building.
Read More >>
As Las Vegas grows, local residents fret, Lied study suggests
Hubble Smith / Las Vegas Review Journal
May 29, 2007 - Rapid growth in Southern Nevada continues to be a major concern for local residents, a report from the Lied Institute for Real Estate Studies at the University of Nevada, Las Vegas said.
"While growth is in many ways positive for any community, the rate of growth undergone by metropolitan Las Vegas in recent years has created its share of problems as well," authors of the 25-page white paper, "The Future of Office and Industrial Development in Southern Nevada," wrote.
The Las Vegas Valley's growing population, which has doubled to nearly 2 million people in the last 12 years, presents continuing challenges to real estate development, local governments, environmentalists and educators, the report said.
Read More >>
Condominium craze cools
Brian Wargo / In Business Las Vegas
May 18, 2007 - The condo speculation boom appears to be over in Las Vegas.
For the first time since the condo boom started in 2003, the number of proposed units in the Las Vegas Valley has declined, according to the first-quarter luxury condominium report issued by Las Vegas-based research firm Applied Analysis.
And the report doesn't include the latest condominium project to fizzle out when the Edge Group announced last week that its W Las Vegas project wouldn't go forward. After months of rumors that partner Starwood Hotels and Resorts had pulled out, the Edge said its Harmon Avenue casino and condo project was canceled.
Read More >>
Industrial construction steady as market grows
Hubble Smith / Las Vegas Review Journal
May 2, 2007 - The Las Vegas industrial market continued its active pace in the first quarter with nearly 4.5 million square feet of buildings under construction and 333,000 square feet taken by tenants, CB Richard Ellis reported in its market overview.
With vacancy below 4 percent for the third straight quarter, it remains difficult for tenants and users to find industrial space, CB researcher Jessica Willett said.
Read More >>
Las Vegas Hungers for Retail
Lisa McQuerrey / National Real Estate Investor
May 1, 2007 - The high-octane gaming and tourism industries have fueled record growth in the entertainment capital of Las Vegas, creating a booming retail services market that has sparked development, sent retail vacancy rates plunging, and driven shopping center prices to new heights.
Read More >>
Las Vegas Office Market
Western Real Estate Business
May 2007 - Driven by a strong resort industry, healthy in-migration and a rapidly growing demand for office-using employment (jobs related to professional and business services, financial activities, and health care and social assistance), the Las Vegas Valley’s office market has evolved dramatically during the last 10 years. According to the Nevada Department of Employment, speculative multi-tenant projects grew by 16,400 jobs in 2006 to just more than 195,000.
Read More >>
Industrial market grows in Q2
Tony Illia / Las Vegas Business Press
April 28, 2007 - The Las Vegas Valley's industrial market grew to 94.7 million square feet in 3,755 buildings in the first quarter, a 6.3 percent increase from a year ago, reports Restrepo Consulting Group, a Las Vegas economic advisory firm. Vacancy rates, as a result, inched up to 4 percent, a half percent higher than a year ago. This marks the third consecutive quarter of rising industrial vacancy rates, yet the absorption-to-completion ratio was still 0.83-to-1, reflecting a balanced market performance.
Read More >>
Foreclosures could lead to opportunities
Brian Wargo / In Business Las Vegas
April 27, 2007 - While Las Vegas and Nevada garner national headlines over their increasing number of homes entering the foreclosure process, local housing analyst Dennis Smith said it got him thinking how that growing concern can help solve another problem in the valley.
Smith, the president of HomeBuilders Research, who analyzes the Las Vegas housing market, said the spotlight has been on the negative fallout caused by foreclosed properties.
Nevada kept its No. 1 spot in the country in March for its foreclosure rate calculated by national tracking firm, RealtyTrac. Las Vegas made the list of cities at No. 2.
Read More >>
Businesses confident state's aversion to tax will hold up
Phoebe Sweet / Las Vegas Sun
April 26, 2007 - If Chancellor Jim Rogers thought Nevada's business community would stand beside him in supporting corporate and personal state income taxes, he's probably feeling a little lonely right now.
Business leaders are so sure Rogers' idea won't find traction, they are not even feigning concern about the prospect of new taxes.
"One thing that continues to attract businesses and residents alike to the state is the low tax environment , and at the core of that is the lack of state income tax, a huge plus for Nevada," said Cara Roberts, spokeswoman for the Las Vegas Chamber of Commerce. "We would oppose corporate and personal income taxes. We've long been advocates for a low tax structure. And we believe it's the heart of our economic success story. The state has important needs , but we also need to look at our own fiscal responsibility."
Read More >>
In Las Vegas, Too Many Hotels Are Never Enough
Gary Rivlin / New York Times
April 24, 2007 - Stephen A. Wynn, the hotel and gambling impresario, still remembers the first time he was asked if he and other developers had lost their minds building so many casino hotels here. It was the mid-1970s, when Las Vegas had about 35,000 rooms.
He was asked that same question in the 1980s, while building the 3,000-room Mirage, and again in the early 1990s. By that time Las Vegas was home to more hotel rooms — 106,000 — than any other city in the country.
Read More >>
GSG Development office complex opens in North Las Vegas
Tony Illia / Las Vegas Business Press
April 21, 2007 - Glen, Smith & Glen Development's stylish new office complex debuts this week in North Las Vegas. "The Park at Northpointe" consists of 19, single-level office buildings, situated within a nine-acre, master-planned campus at Martin Luther King Boulevard and Craig Road. SR Construction is the contractor with Perkowitz + Ruth as architect.
The 100,000-square-foot development offers upscale office space from 1,485 to 7,200 square feet in size. Colliers International's Suzette LaGrange, Chris Jensvold and Ryan Martin are the listing agents.
Read More >>
Home sales stats bleak - Closings from bank repossessions rise, but resale prices remain fairly steady
Hubble Smith / Las Vegas Review Journal
April 20, 2007 - New home closings dropped 43.2 percent in the first quarter to 5,264 and existing home sales are down nearly 20 percent at 8,539, Larry Murphy of Las Vegas-based SalesTraq reported Thursday.
"Despite the fact that sales are down, prices are pretty stable," Murphy said at his Crystal Ball housing seminar at Texas Station. "That's what's different about this town. It's been three years since the boom and how many times has Money magazine and Forbes magazine said there's going to be a bursting of the bubble and a 30 percent drop in prices? That hasn't happened."
Read More >>
High-rise project uses innovative financing
Tony Illia / Las Vegas Business Press
April 17, 2007 - Getting a high-rise condo project off the ground can be a tough a task. It takes experience, salesmanship, a good location, and most of all -- money.
Most lenders are unwilling, however, to provide a construction loan until 75 percent or more of the project is under hard contract. But reaching that point can be tricky.
Read More >>
New hybrid office/industrial project takes shape
Tony Illia / Las Vegas Business Press
March 28, 2007 - Discovery Gateway Park, a new hybrid office/industrial project, is taking shape on Russell Road, just east of the I-215 Beltway. The $20 million, 91,000-square-foot development consists of two dual-story, mixed-use buildings. It marks the first Las Vegas project by Abbott Brothers Development, a private Southern California company. The park is scheduled to open in the fourth quarter. Western Pride Construction is the general contractor.
Read More >>
Development: Second the motion
Arnold Knightly / Casino City Times
March 19, 2007 - The much-ballyhooed promises of new development along the Harmon corridor seem to be back on track.
With the MGM Mirage's $7 billion Project CityCenter beginning to rise from the ground and new buyers in place at key properties along Harmon Avenue, the growth of the "second Strip" is progressing quickly and surely.
"Over time that area is going to fill in and develop with relatively high-density types of development," said Brian Gordon, a principal at Applied Analysis, a Las Vegas financial research firm. "Whether it is hotel, gaming, entertainment or residential is yet to be determined. But clearly there is a significant amount of developable property in that area."
Read More >>
MORTGAGE LENDING: Subprime woes hit Las Vegas
Nevada tops U.S. in foreclosures; home sellers feeling the squeeze
Hubble Smith / Las Vegas Review Journal
March 16, 2007 - Listen closely and you'll hear the croaking sound of nearly 40 subprime mortgage lenders nationwide, including Las Vegas-based Silver State Mortgage, that have either shut down operations, filed for bankruptcy or have been acquired through last-ditch mergers since late last year.
The trend will reverberate through Las Vegas, strengthening Nevada's position as the No. 1 state for foreclosure filings and driving home prices down by 3 percent to 5 percent, said Debi Averett, founder of Phoenix-based Housingdoom.com.
Read More >>
Las Vegas Condo Market Discussed
Hubble Smith / RGT Online
March 15, 2007 - Nobody really knows the depth of the high-rise condominium market in Las Vegas, though nearly 1,000 have been built and sold and another 5,800 are under construction, a local economist said Tuesday.
John Restrepo, principal of Restrepo Consulting Group, predicted that 10,000 to 14,000 new units will come onto the market over the next five years, a mixture of straight condos and condo-hotels.
Read More >>
HOUSING: SLACK OF APPRECIATION
Gain rates for local home prices lose steam as housing market cools
Hubble Smith / Las Vegas Review Journal
March 4, 2007 - Home appreciation in Las Vegas has slowed dramatically from the torrid pace of two years ago and turned negative in some areas of the valley last year, a local housing market analyst said.
Median existing home prices increased 3.6 percent valleywide to $285,000 in 2006, based on more than 90,000 existing home closings recorded by the Clark County assessor's office in 2005 and 2006, Larry Murphy of Las Vegas-based SalesTraq reported.
Read More >>
Luxury condos struggle to go vertical
Tony Illia / Las Vegas Business Press
February 27, 2007 - Luxury condo projects are struggling to go vertical due to high construction costs and inexperienced developers, says Restrepo Consulting Group, a Las Vegas-based economic research firm. There were 136 projects totaling 71,519 units as of mid-February, yet only 9 percent are coming out-of-the ground. Another eight projects, combining for 3,654 units, have also broken ground.
“There should be sufficient demand to absorb the 6,665 units in the 14 projects that have gone vertical,” said John Restrepo, principal of Restrepo Consulting Group. “But a large percentage of the projects are trying to gain their footing, and, at worst, are on life support.”
Read More >>
Retail vacancy drops in fourth quarter
Tony Illia / Las Vegas Business Press
February 19, 2007 - Southern Nevada's retail market grew to 37.5 million square feet in the fourth quarter, a 2.2 million square-foot increase from a year ago, reports Restrepo Consulting Group, a Las Vegas-based economic research firm. The majority of growth took place in the southwest submarket, thanks to community and neighborhood centers.
Despite the market's expansion, absorption kept pace with new completions resulting in a record-low 2.8 percent valley-wide vacancy rate in the fourth quarter -- its lowest point in over two years.
Absorption-to-completion was 1:1 in 2006, which is 48 percent better than a year ago.
Read More >>
Harrah’s Entertainment Acquisition: Buyers attempt 'creative' funding
Equity firms will borrow against land for financing
Arnold Knightly / Las Vegas Review Journal
February 13, 2007 - The private equity firms that are buying the world's largest gaming company plan to borrow against Harrah's Entertainment's land to help finance the $17.1 billion deal.
Apollo Management and Texas Pacific Group plan to break off some of Harrah's extensive land and property holdings into one or more companies to use as collateral to finance the acquisition, according to a Securities and Exchange Commission filing last week.
Read More >>
|
