High Rise Projects Cancelled
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)