Warehouses aren’t exactly the most exciting real estate. As one developer told me many years ago, it’s just four walls, with lots of air in between.
However, these facilities make up the overheated segment of the real estate market in southern Nevada, as builders wave projects and landlords pay large sums of money to own them.
Amazon was the main reason for growth. If you want a glimpse into the impact of e-commerce giants on local real estate and how the entire industrial market has skyrocketed, step near the Las Vegas Motor Speedway.
Developers have recently packed a large warehousing project into the Speedway area, with at least three Amazon facilities trading within the last five years. All Amazon buildings sold about a year after they were built, and prices soared.
Most recently, a Boston investment company acquired an 857,000-square-foot Amazon warehouse for $ 226.4 million in April. Acquisition of two buildings Records of properties along the Tropical Parkway on Interstate 15 show.
By comparison, in late 2017, 813,000 square feet of Amazon facilities $ 73.4 million As part of the purchase of two buildings along I-15 in Ramboulevard.
Amazon’s facilities aren’t the only warehouses we’ve recently traded in in southern Nevada. The retail powerhouse is one of many companies occupying the new industrial space in the valley.
However, Amazon’s expansion in the region and the prices investors have paid to own buildings highlight the fast-growing commercial real estate sector.
Investor activity is generally “very active” for warehouses in southern Nevada, said Greg Tassi, a Cushman & Wakefield broker and industrial property specialist.
He saw record selling prices and said land prices were accelerating.
“For now, I’m a kind of industrial darling,” Tashi said.
Amazon, hundreds As of last fall, we have 13 distribution facilities in North America in Nevada.
Some are very close to each other.Amazon has several large buildings near the Speedway, and Henderson has a 147,000-square-foot delivery facility. Climb the street From Amazon’s facilities over 600,000 square feet.
Amazon refused to comment on this story.
Overall, more than 8 million square feet of industrial space was under construction in the Las Vegas area in the first quarter, up from 5.45 million in the same period last year, and market vacancy rates fell to a record low of 1.7%. did. Reported by Colliers International.
Southern Nevada also recorded $ 608.4 million in industrial investment revenue in the first quarter of this year, surpassing $ 1.6 billion in 2021, according to the Koreas.
Of course, not all areas of commercial real estate are so hot. With more time shopping on websites such as Amazon, retailing in physical stores has become unstable. More than two years after the pandemic triggered widespread telecommuting arrangements, the office market is still in doubt.
But don’t expect the Las Vegas warehouse market to brake soon, as long as people continue to buy things from the comfort of the sofa.
Remember that such things will be shipped to you from somewhere.