High
Developers are canceling plans for high-rise residential towers near the Strip due to rising construction costs and slow sales.
“There are 60,000 condominium and 19,000 condo-hotel units currently proposed, planned or under construction in the Las Vegas Valley,? says John Restrepo, principal of Restrepo Consulting Group, a Las Vegas real estate research firm. “But we anticipate that less than 25 percent of those units will actually be built in the next five years.?
Busy contractors are quoting prices week-to-week due to rapid material and labor cost increases, which have climbed 10 percent to 30 percent over the last year, say local firms. Slow-selling projects, as a result, must budget enough money into the development for construction inflation.
“Only 13 of the valley’s 107 planned projects have broken ground thus far, and just 10 have gone vertical,? Restrepo reports. “Experience, financing, location and branding remain the key ingredients for a project’s successful transformation from a Web site into a vertical reality.?
(Source: Architectural Record)