LAS VEGAS, June 9, 2016 – Multi-family construction volume in Las Vegas is at an all-time high, according to Cushman & Wakefield/Commerce. Each year on average, permits for 5,000 to 6,000 units are granted. Currently, permits for nearly 11,000 units have been granted, indicative of growth and improved market conditions.
Although multi-family construction is flourishing across Las Vegas, the area experiencing the highest level of action is in unincorporated Clark County along a five-mile stretch of 215 west of Las Vegas. Land prices in the past years have averaged $10,000 to $15,000 per unit, which have now increased to levels of $35,000 per unit, or more, in some instances. Some of the larger multi-family developments with approved permits are:
- Union – Nevada West: 338 units, 4450 South Hualapai Way, 89147
- Aspire – Ovation: 271 units, 9110 West Tropicana Avenue, 89147
- Elysian West – Calida Group: 466 units, West Hacienda Avenue & Jerry Tarkanian Way, 89148
- SW – Nevada West: 310 units, 6355 South Durango Drive, 89113
- 2One5 – Nevada West: 368 units, 7960 Rafael Rivera Way, 89113
“The amount of undeveloped land in this area has enticed developer interest. Situated between two high-revenue producing areas, Summerlin and Henderson, with easy access on 215, the area is well-suited for multi-family development,” said Carl Sims, executive director with the Las Vegas office of Cushman & Wakefield/Commerce. “Last year Las Vegas was one of the leaders in overall construction nationwide, so I am not surprised to see multi-family playing a larger role in that mix.”
Lower than normal vacancy coupled with rental rates increasing 4 – 6 percent yearly is spurring new multi-family development. It is important to note everything is cyclical and this current trend is no different. The recent up-tick in land costs is expected to slow the multi-family construction boom and begin a deceleration in current trends.
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About Cushman & Wakefield/Commerce
Cushman & Wakefield/Commerce operates the Cushman & Wakefield business in Idaho, Nevada, Utah and Washington. As part of the Cushman & Wakefield global platform and with its sister company Cushman & Wakefield/NorthMarq, the firm offers innovative commercial real estate solutions to occupier and investor clients, offering transaction services, capital markets services, occupier and investor services, and real estate advisory. With nearly 300 employees, 9 million sq. ft. of property management and transaction value of more than $2.8 billion, the firm is a leading commercial real estate resource in the Intermountain West region and Pacific Northwest. Learn more at www.comre.com.
About Cushman & Wakefield
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