VEGAS INC Magazine - Latest Las Vegas business news, features and commentaries about gaming, tourism, real estate and more
Issue link: https://www.ifoldsflip.com/i/132233
In business real estate manufacturing warehouses popping up across the valley By Eli Segall staff writer There are good reasons developers have avoided new commercial real estate projects in Las Vegas. Vacancy rates are sky high, rents are basement low, and it's anyone's guess whether the market will fully recover from the building bust. But one area of real estate is seeing a burst of activity, though some analysts question how long it will last. At least 910,000 square feet of industrial space is being built in the valley. That compares with 321,000 square feet of anchored retail space and just 175,000 square feet of office space under construction, according to Applied Analysis, a Las Vegas research firm. Almost all of the industrial projects are being built or are planned by the companies that will use them, unlike during the boom era, when speculative projects with no tenants abounded. At first glance, the new construction seems unnecessary. The valley's industrial vacancy rate is up to 17 percent. But these companies need a lot of room, and most of the valley's vacant buildings are relatively small. Also, construction costs and industrial land prices are relatively cheap, making it more affordable to build a custom facility now than during the boom years, real estate executives and analysts said. "These types of facilities simply don't exist in Southern Nevada, so if (companies) really need to be here, they have to build," said Dan Doherty, an industrial real estate broker with Colliers International. SHFL entertainment Inc., the casino supplier formerly known as Shuffle Master, is building a 130,000-squarefoot headquarters. Data-center operator Switch is adding a 600,000-squarefoot facility. Food distributor Chelten House Products is building a 110,000square-foot facility, and communications equipment maker VadaTech is building a 70,000-square-foot manufac- turing center. Projects in the pipeline include FedEx Ground's 300,000-square-foot distribution center in Henderson, which broke ground May 6. TJX Cos. is expanding its 700,000-square-foot North Las Vegas distribution facility by a reported 300,000 square feet. DOWNTOWN TOGETHER earnings NV ENERGY's profits soar in first quarter "We're proud to be building our new downtown headquarters with the strong financial relationship we have with our banker, Sarah Guindy, and the Bank of Nevada team." By Eli Segall staff writer Despite a dip in revenue, NV Energy nearly doubled its first-quarter profit this year. The Las Vegas-based power company said it earned $21.5 million in net income, or 9 cents per share, for the three months ending March 31. That compares with $12.2 million of profit, or 5 cents per share, during the same period last year. The utility, which serves 90 percent of Nevada's population, said it had $584.2 million of operating revenue last quarter, down from $611.4 million a year ago. However, it slashed its energy efficiency program costs by $9.6 million and lowered its maintenance costs by $7.6 million. These and other factors helped boost its first-quarter profits. | 2 7 M AY 2 0 1 3 20130527_VI13_F.indd 13 | Robert Eglet, Senior Partner Eglet Wall Christiansen To read their story, visit bankofnevada.com/eglet 4/13 702.248.4200 Bank of Nevada is an affiliate of Western Alliance Bancorporation 13 5/23/13 2:29:30 PM