Las Vegas Real Estate So Hot It Could Burn Local Industry
Las Vegas real estate has been very hot, thanks in part to high prices for land and high demand for residential property.However, a piece in In Business Las Vegas points out that the effects of high land prices on local industry could be luke-warm at best:
Industry proponents caution that further "down-zoning" of commercial land for construction of homes could negatively impact the job market in the area, which has long sustained Las Vegas real estate.During the first quarter of 2005, the industrial market remained strong, but brokers, developers and users of space continue to worry about the effect of
land prices on the market sector.
Land prices continue to increase, causing some developers, particularly those building distribution space, to enter (or propose) joint ventures with property owners, Kevin Higgins, senior vice president of Voit Commercial Brokerage said.
"In order for certain developers to afford these new pricing levels, profit-sharing with land owners is the vehicle to continue developing real estate," he said.
Developers also are looking at projects that include more showroom and office space, rather than straight industrial warehouse, to justify land costs and rent, said Mike Lyons, senior vice president of NAI Horizon's industrial division.
