As established Las Vegas land realtors, our brokerage team keeps a constant eye on market reports to help inform our approach as we guide clients looking to buy land in Las Vegas or list their land for sale in Las Vegas. Today, then, we wanted to specifically look at CoStar’s 2018 Hospitality Sales Report for our Valley—read on for a complete overview.
An overview of the market:
Let’s start with an overview of the 2018 hospitality real-estate market in Las Vegas:
- Sales Volume: 2018 saw 19 hospitality real-estate transactions in our Valley. The square-footage sold landed at 4,520,563—with a low sale of 7,255 square-feet and a high sale of 1,624,690 square-feet, for an average square-footage of 251,142. The overall sales volume landed at $1,419M—with a minimum sales volume of $1M and a maximum of $508M.
- Sales Numbers: In 2018, the sales-price-per-square-foot for hospitality sales landed at $312—with a minimum sales-price-per-square-foot of $71 and a maximum of $49. The average sales price was $75M—with a low sales price of $1M and a high sales price of $508M. The cap rate (the rate of return expected to generate on an investment property) for hospitality real-estate sales in Las Vegas 2018 was 10.3%—with a low cap rate of 6.9% and a high cap rate of 14.6%.
- Buyer Types: Of all 2018 hospitality sales in our Valley, 40% were completed by real estate investment trusts/public buyers; 38% were completed by private buyers; 11% were completed by user; and 10% were completed by institutional buyers.
Top Buyers in 2018 Hospitality Sales:
The top ten purchasers in 2018 collectively invested $1,403,550,000 in hospitality real-estate purchases—with the top sales value landing at $507,500,000. The origins of the purchasers were mostly from Nevada and California—with 6 of the 18 top buyers (or roughly 33%) being in-state buyers and another 6 of the 18 being from California. Aside from Nevada and California, 2 of the top 18 hospitality buyers came from New York—with Virginia, Massachusetts and Florida each having one buyer amongst the list of 18. The highest number of square footage owned amongst the top 18 hospitality buyers landed at 78,844,407—while the lowest was 5,643. The most prominent purchasers included VICI Properties Inc, Hilton Worldwide Holdings, Inc., Park Central New York, Meruelo Group, and Rockpoint Group LLC—while the primary practice listed for all 18 investors was “Investment/Ownership.”
Reports like the 2018 hospitality real-estate sales report help our Las Vegas land brokerage team stay current and informed when it comes to local real-estate trends and the general health of our local market. Keeping a regular eye on just how hospitality sales are playing out is a proactive way to ensure both buyers and sellers are empowered with the information they need before they buy land in las Vegas or make the decision to list their land for sale in Las Vegas.
Interested in investing in the local real-estate market? Connect with our Las Vegas land brokerage team today—we’d love to learn more about your property and/or project goals.