Las Vegas is No. 5 on a list of top-five “buy” markets in the Summer 2016 U.S. Multifamily Market Outlook by research firm Ten-X — operator of an online portal for commercial and residential real estate. Las Vegas ranks behind Orlando, Phoenix, Atlanta and Fort Lauderdale.
Ten-X used several criteria to identify the top buy markets, including market-wide projected net operating income, vacancy improvement, rent growth and valuations through 2018.
Las Vegas had a citywide vacancy rate of 4.2 percent in the first quarter of 2016, and Ten-X is forecasting a decline to 3.8 percent for 2019 — a decrease of 40 base points. Rent growth, which measured 3 percent in the first quarter of 2016, was also projected to rise through 2019 — from an $890 rental average to $1,020, a 14.6 percent jump.
Las Vegas is ahead of the national projections on rental rates, where a 3.6 percent annual gain is expected nationally through 2018. However, that number is expected to sink to 1.4 percent annual growth, with a predicted cyclical downturn in 2019.
Forecasts on the national scene also look healthy, as demand continues its six-year-surge, the report stated. The national vacancy rested at 4.5 percent, indicative of a high-demand market. Though reflective of a construction boom, the report also noted an increase of 10 base points every quarter since the first half of 2015.
GLVAR building new offices
The Greater Las Vegas Association of Realtors will have new headquarters by the fall of 2017.
The planned 30,000-square-foot, two-story structure will house classrooms large enough to seat 300 members. Construction is slated to begin in January 2017.
The new building will be near Interstate 215 at Sunset Road and Rainbow Boulevard. GLVAR’s current location is at 1750 E. Sahara Ave., between Eastern Avenue and Maryland Parkway.
The building will focus on achieving Leadership in Energy Environment Design (LEED) certification.
NAIOP’s national chapter opens
nominations for project of the year
The national chapter of NAIOP, the Commercial Real Estate Development Association, recently announced that nominations for its Project of the Year award will be open through Aug. 31.
This year’s awards will honor developers who bring innovation in office development or renovation. Candidates will be rated in areas such as financial analysis, economic impact, innovative design, challenges and solutions and supporting materials.
Nominators must choose an active developer-member of NAIOP in good standing. That developer must be the developer of record on the project, and the completion dates had to have been between Jan. 1, 2014-Jan. 1, 2016. The project must also have been more than 51 percent utilized for office and can be a new development, redevelopment or adaptive reuse. Awards will be presented at O.CON: The Office Conference on Nov. 1-2 in Los Angeles.
Dignity Health breaks ground on neighborhood hospital
Dignity Health-St. Rose Dominican, in partnership with Houston, Texas-based Emerus, broke ground on the second of four planned neighborhood hospital centers in mid-July, with projected openings starting in 2017. The facility will be at Sahara Avenue and Decatur Boulevard in Las Vegas.
The eight-bed, 20,000-square-foot facility will house an emergency department, inpatient wing, imaging and quick-access lab services.
“We are elated to be a part of something so significant to the Las Vegas community,” said David Stillwell, COO of Emerus. “In Dignity Health-St. Rose Dominican, we’ve partnered with a patient-centered organization that shares our vision and recognizes the importance of healing not only the body, but the mind and spirit as well. We’re proud to celebrate this tremendous partnership.”