Prudence continues to reign in Southern Nevada’s industrial market, despite calls for more speculative space for large users.
That’s the word from brokerage Avison Young, which reported in its Spring 2015 Canada, U.S. and U.K. Industrial Market Report that in the first quarter local developers remained loath to build without tenants lined up.
The local market has plenty of projects underway: About 2.2 million square feet of big-box industrial space was under construction in the first quarter, with another 4 million square feet planned for delivery through 2016.
But projects under construction at the beginning of 2015 were already completely preleased or will be owner-occupied, Avison Young’s analysis said.
“Developers remain cautious where big-box warehouses are concerned,” the report said. “Without an existing owner/user or tenant in need of new or expansion space, the risk of building on a speculative basis is still too high. … Aside from the projects currently proposed or under construction, some developers are still hesitant to pull the trigger on new product without significant preleasing activity.”
That circumspection may make sense: Leasing fell dramatically in the first quarter. Landlords executed 45 leases in the first quarter — fewer than half of the 100 leases they completed in the same period of 2014. Most of the recent contracts were for smaller spaces with less than 20,000 square feet. Just two were for significantly more, at 96,000 and 67,000 square feet.
The report also said it’s “likely” that industrial construction will slow in 2016.
Housing Outlook May 29
Home Builders Research has scheduled its next semi-annual Housing Outlook for May 29.
The real estate analysis firm will host the event — called “Half Empty or Half Full?” — at the Springs Preserve, at 333 S. Valley View Blvd. Registration and breakfast begin at 7:30 a.m.; the program starts at 8:30 a.m.
Home Builders Research President Dennis Smith will give a detailed update on Southern Nevada’s housing market. A panel will discuss the numbers and give forecasts on what’s ahead for the industry through the end of the year.
Panelists are Mike Brunson, a partner in consulting and appraisal firm Brunson-Jiu LLC; Scott Russell, senior manager of research for the Las Vegas Convention and Visitors Authority; John Stater, research and GIS manager at commercial brokerage Colliers International; and Mike Sweeney, sales manager at Alpine Mortgage Planning.
The Business Press’ sister publication, the Las Vegas Review-Journal, is sponsoring the event.
CBRE handling Linq
Brokers with CBRE Las Vegas landed a big client on the Strip.
The company’s Global Gaming Group and retail division has listed available space at The Linq, a 200,000-square-foot, mixed-use shopping, dining and entertainment district at 3535 Las Vegas Blvd. South. The open-air center, developed and operated by Caesars Entertainment, already has clients including Yard House, Brooklyn Bowl and Kitson. It’s anchored by the High Roller, the world’s tallest observation wheel.
“This is a great opportunity for progressive and exciting brands to join the already stellar line-up at The Linq,” said Bob Morse, president of hospitality for Caesars. “We are happy to partner with CBRE to help us find the ideal additions to further enhance the overall visitor experience and create the perfect tenant offerings.”
A home-building program to help needy families received recognition from local leaders for its efforts.
HomeAid, sponsored by the Southern Nevada Home Builders Association, were honored by the Clark County Commission on May 19 for having built and renovated more than 100,000 square feet of homeless shelters and facilities that have helped more than 2,000 homeless people countywide.
HomeAid engages homebuilders, subcontractors, trades and suppliers who donate time, labor and services.
The group has organized industry support for housing providers including Nevada Partnership for Homeless Youth, Family Promise, Project 150, Lutheran Social Services, Las Vegas Rescue Mission, St. Jude’s Ranch for Children and Westcare Women’s and Children’s Center.
Bill June of Beazer Homes guided the founding of the group.
For additional information, visit homeaidsn.org.
Goodwill site underway
Goodwill Industries of Southern Nevada plans to open its first northwest Las Vegas store this fall.
The nonprofit organization, which helps train and find jobs for people with employment barriers, broke ground May 14 on a 17,000-square-foot, build-to-suit store on North Durango Drive near Deer Springs Way, in Centennial Hills.
Brokers with CBRE Las Vegas handled the land search. Milestone Construction will build the facility. Brentwood Capital is helping finance it.
The store will create 40 jobs.