As a team of seasoned Las Vegas land realtors, we always strive to remain on top of current market trends as we help developers and investors looking to buy, sell, or invest in Las Vegas land—and one of the ways we do so is by keeping a close eye on insightful market reports. Today, then, we’re offering an overview of CoStar’s 2018 Industrial Real-Estate Sales Report for Las Vegas—read on for our top takeaways.
An overview of the market:
Let’s start with an overview of the 2018 industrial real-estate market in Las Vegas:
- Sales Volume–Units & Transactions: There were 159 industrial real-estate sales in Las Vegas in 2018—with a total sales volume of $693M. Total industrial square footage sold in our Valley landed at 6,579,008—with an average square footage sold of 41,377 (with a low sale of 1,710 square-feet and a high sale of 731,561 square-feet).
- Sales Numbers: In 2018, the sale-price-per-square-foot landed at $105—with a minimum price of $61 per-square-foot and a maximum price of $731 per-square-foot. (We saw the average sales-price-per-square-foot increase in Q3 and Q4 after a dip during Q2.) The average sales price for industrial real estate in Las Vegas was $4.4M, with a low sale of $0.4M and a high sale of $52M. The cap rate (the rate of return expected to be generated on an investment property) for industrial real-estate sales in 2018 was 6.7%—with a minimum of cap rate of 5% and a maximum of 9.9%.
- Properties Numbers: In 2018, existing industrial square footage was at 6,723,176—with a minimum existing square footage of 1,710 and a maximum of 731,561. Rent price-per-square-footage landed at $0.63 for industrial real estate—with the highest rent price-per-square-foot being $1.67 and the lowest being $0.08. Lastly, the 12-month absorption rate (calculated by dividing the average number of sales-per-month by the number of available industrial units) for industrial real estate in 2018 was 1,977,344.
- Buyer Types: Of all 2018 industrial real-estate sales in Las Vegas, 33% were completed by private buyers; 31% were completed by real estate investment trusts/public buyers; 30% were completely by institutional buyers; and 7% were completed by user.
Top Buyers in 2018 Industrial Real-Estate Sales in Las Vegas:
In 2018, the top ten purchasers collectively invested $1,074,257,599 in industrial real-estate purchases in Las Vegas, with 60 of the top 114 purchasers—or 52.6%—being from Nevada (and just over 20% with origins in California). The highest sales value for industrial real-estate purchases was $380,760,000—and the lowest was $365,000. Overall, the most prominent purchasers included Clarion Partners, Brookfield Real Estate Funds, BKM Capital Partners, Eric Chen, and Global Logistic Properties Ltd.
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