Las Vegas Commercial Real Estate

Verge, an eight-story condo development, located at the corner of Main and Bonaza roads has cleared another hurdle to qualify for its construction loan. According to its developers, 86% of the 229 unit have been put under contract in the past two weeks at an average price of $400 per sf. Previously, Fremont Bank had pledged $75M in construction financing contingent upon selling 50% of the units. With that goal met and surpassed, developers expect the project to break ground this summer and be complete in late 2008.

The high rate of sales may be due to the low pricing strategy employed by the developer. Compared to other new ground-up condo developments in LV, the asking price was considered quite affordable. Studio units began at $149,900 and a total of 37 units were priced under $200,000. Of all the units, 60% are priced under $400,000. Read the rest of this entry »

GlobeSt.com is reporting that Coral Gables-based developer R. Donohue Peebles has bought 13 acres in LV approved for a 4.5-million-sf non-gaming resort that he estimates will cost $1.6 billion to develop and have a retail value of $2.5 billion. The property is located east of the Wynn Las Vegas Golf Course on Paradise Road, one-half mile off the Las Vegas Strip. It currently holds the Las Palmas apartment complex.

The development plan calls for four 55-story towers housing an 800-suite luxury hotel, 1,000 luxury condos, an infinity-edge pool 400 feet above the Strip, a 40,000-sf destination spa, a restaurant run by an acclaimed chef, and exclusive retail shops. The first tower, slated for completion in 2009, would house the hotel, spa, shops, restaurant and pool on the first 50 floors. The top 15 floors of the first tower would house super luxury residences. Read the rest of this entry »

Marcus & Millichap released its Retail Trends forecast recently. According to the company, we can expect to see:

Virginia-based Resun Modspace Inc. bought the industrial property at 5950 Emerald Ave. from Transport International Pool Inc. for $4 million.

The distribution building sits on a 9.16 acre lot and is 8,683-square-foot. Built in 2001, the property is located in the Airport/E. Las Vegas Industrial submarket. Read the rest of this entry »

In its latest report, the the Bentley Group predicts that the office vacancy rate in the LV market will reach 12% by the end of the 2007 as more space comes online than can be absorbed.

The first quarter of 2007 saw a vacancy rate of 11.1%, up from 8.7% a year ago. With 4.1 million square feet of space under construction and 7.8 million in various planning stages, this number is only projected to grow larger.

Even though higher vacancy rates are on the horizons, it doesn’t appear to be curbing rent prices. Currently, the $2.32 per square foot asking price is a 6.9% premium over last year.

Of the 3,300 units sold during the first quarter, the average price per unit was $104,400, a 19% premium over 2006. Read the rest of this entry »