Las Vegas Multi-family Experiencing Construction Boom
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.