7 Projects contributing to the $14 billion of development underway in Las Vegas
Las Vegas has always been a place averse to signs of aging, having new developments is never a surprise. This time we have more than $14 billion under construction, which is nothing short of amazing. The extraordinary impact of all the cranes is already being felt across the whole valley. Is the city remaking one of the worlds most recognizable roads in the world?
With that in mind, we created a list with some of the most impressive and interesting developments that are in construction right now and which might be finished either in 2019 or 2020 and beyond. One thing is certain, Las Vegas always tends to have something in development, and at this time you will find some amazing, massive projects that are under construction. It’s interesting to see how much the landscape has changed even in the past decade.
This is great for Las Vegas as a city, because it brings in great, new features for tourists. After all, Vegas is known for being a prime destination for people all over the world. Some of the projects listed below are related to tourism, but some of them are created specifically for locals. Either way, they are all amazing and you will be quite impressed to learn that there are more than $14 billion in development right now throughout Las Vegas!
The first phase will start with office spaces that cover 150k square feet, this also includes retail, parking garages, restaurants and 875 apartment units. People nearby are excited about this development. The idea is that this establishment is something innovative and also quite expensive. The groundbreaking part is set for early next year, phase one is estimated to be completed towards the middle of 2021. UnCommons is certainly one of the developments you need to keep an eye on.
2. Las Vegas Raiders Stadium
By far one of the most exciting developments in Las Vegas at this time is the Las Vegas Raiders stadium. This one has 65k seats and it’s an indoor football stadium. The overall cost is around $1.8 billion. This is a very interesting development that continues to impress everyone with the huge scale of this entire project. There’s no specific completion date, but that might be around mid-2020. Its construction started in September 2017, and there weren’t that many problems that would push the development. A lot of people suggest that the Las Vegas Raiders stadium will most likely be ready just in time for the 2020 NFL season. One thing is certain, this stadium is nothing short of extraordinary, having a domed stadium in Vegas does stand out quite a bit and the stadium is also set to bring in all the latest technologies and features as you might imagine.
3. Las Vegas Convention Center ExpansionThe Las Vegas Convention Center expansion is also a very expensive development that’s already in construction. This is more of an expansion rather than a new construction, but, it’s already visually impressive and the Las Vegas Convention Center is set to become one of the main attractions in the city. That being said, this expansion will cost around $935.1 million, so it’s very expensive, but it might be quite a great addition for people that are coming to the city for the first time. The economy of South Nevada is driven by tourism, so expanding the Las Vegas Convention Center will help bring in a much better way to serve tourists that visit this magnificent city. Since the tourism industry generates around $60 billion in total for Southern Nevada, it’s easy to see why expanding the current Las Vegas Convention Center and offering even more assistance and support to customers can pay off very well.
3. MSG Sphere
The MSG Sphere is a music and entertainment venue built in Paradise, Nevada and it’s set to be complete in 2021. It will have a capacity of around 18000 people and it will also include 19000 by 13500 resolution LED screens that will be spread within the venue’s interior. All seats have high-speed internet access, which will help make this venue even more impressive and interesting than it is at this particular time.
On top of that, the MSG Sphere is set to have a powerful sound system that will deliver sound through the floorboards. And to top it all off, the exterior of the venue will include a 360-degree IMAX display that will make it easy for people on the outside to see what’s happening inside the venue. This is a next-gen entertainment venue that’s set to impress everyone with its complexity and resounding features.
5. Resorts World Casino
Having yet another resort in Las Vegas might not seem like huge news. But Resorts World Casino wants to make things a bit different here. This development is built on an 87-acre site on the Las Vegas Strip and despite the construction starting in 2018, this project is set to be completed at some point in 2020. There are many great features related to the Resorts World Casino. The primary thing here is that Paul Curtis Steelman and the Steelman Partners managed the architectural design. As a result, the entire project looks downright amazing, and it will bring in lots of people excited by gambling to the city. That being said, the Resorts World Casino project is also located very close to the Sky Condominium Las Vegas. That alone makes it a very good investment and the condos also have quite a bit to earn from having a stellar, impressive resort located right near them.
6. Marriott's 4000+ Mega Hotel Resort AKA The Drew
Marriott is known for the fact that they always try to push the boundaries with new developments. They have a new resort under construction in Las Vegas. The project is set to be named The Drew and it will feature more than 4000 luxury rooms. Including in this resort project there will be more than 500000 square feet of meeting and convention space for the business visitors as well. Another interesting thing about this project is that the Drew Las Vegas will feature more than 90000 square feet of gaming space. Obviously this will be more than enough to host thousands of players as they enjoy a great gambling experience. The story of this project is quite intriguing because it has been in development for quite some time. It was started back in 2005, and the project name was Fontainebleau Las Vegas. Then it entered bankruptcy in 2009, so it was put on hold for quite some time. Years later Marriot International decided to give this a shot, and now they are working hard to complete one of the most interesting and promising resorts in Las Vegas.
7. Las Vegas Ballpark
The Las Vegas Ballpark is a $150 million construction created specifically for baseball lovers. The project has an opening date of April 9 2019. The Howard Hughes Corporation owns this Las Vegas Ballpark and the entire project is set to bring in some astounding visual and feature upgrades when compared to many stadiums out there.
However, the construction process and more particularly the initial steps were a bit hard to complete mostly because the stadium’s sewage system backed up and that did end up being the reason why they invested in these new features. It’s certainly something unique and powerful, which might end up bringing in some rather interesting and powerful features to the table for the most part.
How can these projects help Las Vegas?It’s very important to note that most of these projects are commercial, so they are bound to bring in a lot of visitors to the city. Unlike anything you can find in the world, with the UnCommons development being a prime example in this regard.
Another important thing to note about Las Vegas is that it’s the perfect place for this type of developments. They are very creative, unique and distinctive, and they are changing the economic and touristic landscape quite a bit.
Having more than $14 billion in active developments clearly shows that Las Vegas is a prime destination for tourists and the economic landscape is very favorable for new developments. Which is why more and more developers are constantly trying to acquire new pieces of land as they invest in visually impressive, massive projects.
If my net worth is my network, I am rich beyond belief. It is with tremendous pride I share that I graduated the 2018 CREW Network Leadership Certificate Program last week, a year-long specialized course teaching us leadership development, industry training and mentorship. Thank you Cushman & Wakefield for believing in me enough to put me through such an incredible experience. With my certificate in hand I jumped right into the CREW Convention, with members of my board and 1200 other CREW members. Even managed to meet with Sarah Quinn the VP of Connect Media - CRE to discuss the market and value of mentors and mentoring. It is impossible to place a dollar amount on the relationships I have made over the years and the mentoring I have access to, a warm call to over 11k members globally. Countless students given scholarships, what other organization can possibly say that?
I was recently at a broker gathering, a bunch of us from separate firms to break bread and share best practices. My LinkedIn presence came up as it typically does, only this time a broker was amused at my focus on nonprofits and joked I must not want to retire. That comment and mindset struck me as incredibly disappointing. Yet another reason I am glad I am at Cushman & Wakefield, who not only encourages our teams nonprofit work but provide incredible resources ensuring we are able to completely streamline their leasing process and save them hundreds of thousands of dollars and too many hours to count. If we aren’t in this business to make a mark in a positive way, what are we all doing? Every lease we assist on allows them to invest in their cause, whether it be children, homeless, veterans, senior citizens, and all the other mission driven organizations.
Tax Cuts and Jobs Act
This article is going to take a closer look at multiple topics including the following, and more
Before jumping into those topics, it’s important to understand the reality that many American’s face. 52 million American’s live in economically distressed communities. That’s 1 in 6 American’s. The communities that are struggling today have been completely sidelined by 21st century economic growth.
In non-prime communities, non-prime businesses are struggling with traditional modes of financing. Since 2008, nearly 1 in 4 community banks have disappeared. Small business lending is down by a quarter and 75% of all venture capital is concentrated in CA, MA, and NY.
Taking a look at mission-oriented capital shows that it is just as uneven. 27% of countries received no CDFI funding in the years of 2011 to 2015. Even philanthropies and foundations bypass many of the countries neediest communities in recent years.
What is Opportunity Zone?
Opportunity Zone has strong, bipartisan roots and builds on the lessons prior federal efforts to revitalize struggling communities. Opportunity Zone is so unique because it is designed to concentrate capital, rather than diffuse it. this is an investor incentive that pertains exclusively to capital gains. All of these incentives are tied to the longevity of investment, meaning it rewards patient capital. Opportunity zone provides no up-front subsidy, picks no winners, and unlocks scarce equity capital. Opportunity zone was designed with start-ups in mind and moves with the speed of the market. This truly gives investors a stake in a communities’ future by rewarding based on community success, not individual projects.
What Makes Opportunity Zone Promising?
There are a few things that make Opportunity Zone truly one of a kind and promising for positive results. First, the flexibility of Opportunity Zone is unmatched. Low-income communities have a wide range of financing needs. The flexibility of the incentive provides the potential to support a variety of mutually reinforcing activities within a single community as well as across a broad spectrum of communities.
The Scalability of Opportunity Zone is also very promising. There is no statutory cap on the amount of capital that can flow to Opportunity Zones in any given year. Because of this, Opportunity Zones have the potential to help fuel economic renewal in distressed communities on an unprecedented scale.
Finally, the simplicity of Opportunity Zone is one-of-a-kind. Complexity has often been the Achilles heel of policies aimed at unlocking private capital in low-income areas. Complexity adds cost, time, and risk to business transactions, biasing programs towards a narrower set of stakeholders and more risk-averse outcomes, often precluding the very types of business investments that are most likely to have transformative benefits for communities.
Three Core Elements
Opportunity Zone is based on three core elements.
The unique design of Opportunity Zone results in some major tax benefits for the tax payer. Tax payers can benefit from temporary deferral of a capital gain on any sale or exchange of property to an unrelated person. They can also benefit from a partial reduction of deferred gain. This means that income tax is still paid on a large portion of the deferred gain, but not all of it. Finally, tax payers receive forgiveness on the additional gain or the appreciation on investment. A deferred gain is defined as the aggerate amount invested that does not exceed the amount of the gain generated within 180 days of the sale or exchange. These tax benefits may apply to any individual, business entity, or trust.
What is an Opportunity Zone?
An opportunity zone, or O-zone, is a population census tract that is a low-income community, or LIC. There are 74,000 census tracts in the US, 37% of those are considered LIC’s. For example, Arizona has 671 LIC’s and 217 contiguous tracts. A LIC is based upon poverty rate (20%) and median family income (80%). O-Zone’s are to be timely nominated by each governor. 25% of LIC’s eligible for O-Zone status. This equates to roughly 8,00 census tracts (168 in AZ), 5% of those nominated could be a contiguous tract (9 in AZ).
What is an Opportunity Fund?
An opportunity fund is an investment vehicle organized for the purpose of investing in Opportunity Zone Property. This includes a certification process, penalties for non-compliance, and statutory requirements stating that it must be organized as a corporation or partnership and meet a 90% requirement. The opportunity fun certification is a self-certification that requires the taxpayer to complete a form attached to the taxpayer’s federal income tax return for the taxable year. This form will be released in the summer of 2018. The tax return must be filed timely, taking into account for extensions. There does not appear to be a cap on the number of O-Funds or the amounts that can be invested in the O-Funds. The 90% requirement mentioned above means that 90% of assets must be held in O-Zone Property, which is determined by the of the average of the percentage of O-Zone property held on the last day of the first six-month period of the fund’s taxable year and the last day of the fund’s taxable year. If the 90% requirement is not met, there will be a penalty placed on O-Fund Partners.
Investments that constitute an O-Zone Property include equity investment in an O-Zone Business or the direct purchase of an O-Zone Property. O-Zone Business Property is tangible property used in a trade or business that is acquired by purchase from an unrelated party after December 31, 2017. Original use in the O-Zone must commence with the O-Zone business. The other option is that the O-Zone Business or O-Fund substantially improves the property within a 30-month period by creating additions to basis that exceeds the adjusted basis of such property. During substantially all of the holding period, substantially all the use must be in an O-Zone.
Possible investments in Opportunity Zones include real estate development and significant rehabilitation, opening new businesses, acquiring an existing business and relocating it with expansion, and large expansions of businesses already within O-Zones.
Many of the terms and phrases used may need further explanation. These are a few pieces of additional information regarding the content.
Our team specializes in corporate real estate by representing clients in their leasing and purchasing. Dan Palmeri, SIOR and myself Natalie Wainwright have the experience, bandwidth, knowledge and most importantly, the determination to get corporate users the best possible deal terms for their needs. You can follow our team’s daily activities with our impressive client roster on Twitter & Instagram @vegascreteam.
I had the incredible benefit of working under a top landlord broker when I first got into the commercial real estate business. My first 6 months were filling out the landlord reports, opening doors on spaces and of most value to me now was listening to him on the phone with prospective tenants. Bob Hawkins would take sign calls as smoothly as you or I would order ice cream. It is under Bob’s tutelage that I saw what proper landlord representation should look like, which has been both a benefit and a burden. You can often walk by our teams desks and hear moans and groans of frustration. As tenant reps, we only use listing sites as way to scour the market for the property with suites that fit our clients requirements. We are at the mercy of the brokers that represent the properties to do their job. What should be a straight forward process can sometimes be an absolute beast, which is what has inspired this blog. We are fortunate to work in a thriving market, filled with some absolutely amazing brokers. 99% of the time we are doing deals with the same 15 or so brokers that are consummate professionals, the below is referencing that 1% you need to keep an eye out for.
Top 5 things to look for in a landlord broker
1. Detail oriented – Make sure your property is represented online in full detail. Check for things like, rate, rate type, rentable square footage of each suite, useable square footage, parking capabilities, power capabilities and most importantly make sure that there are floor plans that are easily accessible, and a layout description. Why is this number one? I can tell you first hand of times a client needs a quick turn around on a survey, going into the listing site and 80 properties pop as possibilities. It is my job to open each property, go to each suite and see if it fits the bill. What doesn’t work is going into the property page, clicking the suite and there is no information on the layout and for extra fun there is no brochure attached or at least one with floor plans available. I don’t have the time to call each individual broker, and ask for the layout, wait for them to call me back and then have it added to the survey. Your property will undoubtedly be passed over simply because your broker doesn’t have it dialed in online.
2. A hustler- Now before you roll your eyes let me explain. Is your broker going to work your listing as hard as he’s working maybe a higher end listing she has in her portfolio? Even if your property is a Class A or B do you have a frame of reference into their response time, eagerness to drive across town, and willingness to learn the various nuances of the property? This is important. I witnessed Bob answer calls of people in their cars calling off the sign asking for him to show up right away, and should he not be on a deadline, Bob would grab his brochures and be out the door. The most impressive part was watching him dash out across town on his Class C properties as eager as he would on all his Class A product. That to me is brokering. There was no prequalifying them over the phone, asking them to find a lock box or setting up the appointment the next day. That’s what you want, you want someone that’s going to work your property like it’s his own and as if his livelihood depends on it. As a top broker at Cushman & Wakefield Las Vegas, Mr. Hawkins could have taken liberties and prioritized but that just isn’t the way he operates. Years later, as I call brokers and try to set up appointments, and am met with questions designed to disqualify them from having to show up and show the property, I appreciate his way more and more.
3. CRE is their Main & Only lane- Having someone that primarily does residential real estate isn’t preferable. There is a lot that goes into learning the market, making relationships with fellow brokers and understanding how commercial works. Coming across listings that have the rate, but then the type is set to gross, full service gross, and modified gross is one of the tell tale signs I am about to call a resi agent. This means they have no idea what the difference of a NNN, MG, or FSG is and were hoping to wing it. Knowledge is important, the only thing that trumps that is relationships. All of us office brokers know one another, brokers know when we call with a tenant it means they are qualified to be represented by our team, they know we know how to get a deal over the finish line and most importantly we know how to effectively guide our client. Of equal importance for us is to know that should we tour, and the building be shortlisted that the broker on the other end can get the deal done with their landlord. There is nothing worse than a client getting excited about a building, going through the proposal process to find out that the landlord is using an inexperienced broker that is giving them poor information. If your broker is telling you that it is inline with market to offer no free rent, no tenant improvements and to not wiggle off your face rate at all, you’re getting bad advice and risk alienating the entire brokerage community.
4. Respected – This is one that may be harder to gauge. Does your broker have a respected reputation in the market? Is this person celebrated as being a knowledgeable top broker? Do you notice they are spoken about with admiration and respect? If you finance an open house to get some buzz going on your property will brokers show up? This is important. We would never dissuade a client from selecting a property with a less than stellar broker on the other side, but we aren’t exactly eager to work with someone if they have proven to be unreasonable or slow to respond.
5. Creative – is your broker going to stick a sign outside, put it on the listing sites and call it a day? That’s not the way to fill buildings. So many of our colleagues call us to make sure we are current on the latest availabilities in their portfolio, let us know new space is coming on the market or email the brochure whenever there is an update. Social media is another way to ensure you reach a broader audience. Eblasts and open houses are also great ways to stay top of mind. With tech changing the CRE game it is important that your broker not only adapts but utilizes any software, listing site or app that gets your property in front of the right people.
More landlords are representing their buildings themselves than ever before, when asked why they express frustration in finding the right broker for the job and often state they can stick a sign up just as easily as the rest of them. Proper landlord representation can be key in stabilizing your property. The person you hire will be plugged into the market, have relationships they can leverage, are motivated to work hard and fast to respond. Are you in a different market and want insight into who to use? Call our team and we will make sure you are properly represented, after all, our main lane is filling buildings.
Our team specializes in corporate real estate by representing clients in their leasing and purchasing. Dan Palmeri, SIOR and myself Natalie Wainwright have the experience, bandwidth, knowledge and most importantly, the determination to get corporate users the best possible deal terms for their needs. You can follow our teams daily activities with our impressive client roster on Twitter & Instagram @vegascreteam.
On Episode 002 of the #VegasCREteam Vlog, we launch Tuesday Tips for Tenants. This Tuesday the topic is:
-TIMING - The old adage timing is everything is never more true than when it comes time to discuss your real estate lease.
-How far out should you survey the market from time you intend to occupy?
-Should tenants just looking to renew survey the market?
-How long does it take to get a deal over the finish line?
Watch our video to get a better understanding of when to start talks with the landlord whether it be a renewal or time to relocate. We are a two broker team with Cushman & Wakefield based in Las Vegas, Nevada. With a combined 15 years of experience, exclusively representing tenants and users of office space.
We want to document and share our journey as we continue to grow ourselves, our relationships, our community, our company, our knowledge and experience. The niche we have chosen is due to our passion of giving back by providing value with no questions asked.
Please comment as to what questions you may have, insights as to what you would like to see documented, if you love us or hate us. We welcome all of you into our world.
Follow us online here: Website: http://www.vegascre.com/
Dan's Linkedin: https://www.linkedin.com/in/danpalmeri
Natalie's Linkedin: https://www.linkedin.com/in/natalie-w...
Other than the obvious soaring of shares for Whole Foods and Amazon, the recent purchase will have a serious impact on the grocery industry. Amazon now being dubbed the “robo-supermarket” is set to drastically change the way we shop, and what stores looks like. It is likely Amazon will start using the 460 stores throughout the U.S, Canada and Britain as distribution points to further drive the AmazonFresh grocery delivery business. The online giant could find ways to give their new customer base alternatives without having to turn stores into distribution centers. They have the option of offering customers the ability to order online or ordering a portion of your grocery list online. "Get it all delivered to your home or come in and maybe they put a little Amazon Echo and Amazon Fire Tablet showroom in some of these places," said Brad Stone, technology reporter for Bloomberg and Businessweek.
Amazon is feeling like a progressively powerful force in the sphere of commerce. That could also create an opening for small mom and pop like grocery stores that do not opt in for online sales. Perceiving they are out of there element in mega-deals, those smaller stores may suddenly align themselves with Google, who will need the inventory once they lose Whole Foods. Although many believe Acquiring Whole Foods represents a striking departure from its initial business model, the question to watch is whether that is really true. Or will Amazon bring its tech algorithms, operational know how and low prices to a trendy but very expensive retailer thus putting significantly more pressure on the rest of the industry. The ability to bring a physical effect is a game changer. Consumers want to smell, touch and sample what they buy. 74% of food dollars dished out by online customers are spent in traditional street side businesses.
The Wholefoods deal is the largest deal ever for Amazon, outpacing its acquisitions of Twitch for $970 million in 2014 and Zappos for $850 million in 2009. It was reported last month that Amazon was set to open a physical bookstore in Washington, adding to the portfolio that includes San Diego, Portland, Ore., and its hometown, Seattle. The Amazon store in Georgetown is on the same block that once housed an enormous, multistory Barnes & Noble, which closed in 2011 as part of a deep withdrawal that came after years of fighting a losing battle with Amazon.
Miscellaneous Amazon Endeavors
Available to Prime members, Amazon Restaurants promises to deliver meals from restaurants to customers in one hour or less.
Its logistics business includes warehouses, an army of workers and even planes. It is also testing drones for delivery to homes.
With its Fire Tablets, Amazon’s touch-screen devices are still far behind rivals Apple and Samsung.
A Cloud Computing
Its cloud computing business, Amazon Web Services, hauled in $12.2 billion in revenue last year from customers including Netflix and the Amazon Prime Video, which features a combination of new movies, TV shows and original programming.
The Echo, which uses its Alexa personal assistant, has been a breakout success.
Amazon has pilot tests of AmazonFresh Pickup stores and drive-through locations to pick up items ordered online and, if the deal goes through, it will have high-end markets with Whole Foods.
The Raiders announced earlier this week the successful purchase of 62 acres of land for their $1.9 billion stadium, which is scheduled for completion by the start of the 2020 NFL season. The land was purchased for $77.5 million or $1.25 million per acre. Now that we have a site, what’s next? There are multiple major projects that will be taking place over the next 39+ months to turn dream into reality.
If you have ever attended an NFL game, you know too well the stresses on infrastructure when 65,000 people leave at once. With direct access to the Las Vegas Strip, exits in all directions and immediate interstate availability, diligent design and planning can potentially provide a great user experience when getting to and leaving a game.
The next questions is whether the stadium will bring improvement to the immediate surrounding neighborhood, which consists of a truck stop, industrial buildings, hotels and a few high-rise towers. We have already seen the immediate impact on the high-rise condo market, as sales jumped the day of the NFL owners vote. Will we experience gentrification in a long-time undesirable area? Will new construction and higher-end mixed-use projects come out of the ground? With the proximity to the strip, many don’t believe so, but only time will tell.
https://www.reviewjournal.com/business/stadium/las-vegas-freeway-projects-would-clash-with-raiders-stadium-opening-in-2020/ (link to RJ of Tropicana Interchange Rendering)
What do all the below office markets have in common? A Strong economy and a limited inventory of prime office space. We are now approaching a completely new stage in commercial real estate, where cities are battling to attract the top corporations, appeal to the top talent and draw in funds.
1. HONG KONG CENTRAL - $278.50/SF/YR
No surprises here, undeterred by the slowdown in China, Hong Kong’s CBD is holding strong at being #1.
2. Beijing Financial Street - $179.00/SF/YR
Although still #2 on the list, the current rate has decreased $9.00/SF/YR from last years high of $188.00/SF/YR
3. Beijing Central Business District - $156.00/SF/YR
Leasing demand for quality office space is at an all-time high in Beijing’s Central Business District
4. London West End - $148.30/SF/YR
Just barely beating out Midtown Manhattan this year with occupiers and investors responding positively in the first quarter
5. Midtown Manhattan - $144.30/SF/YR
Still considered the world’s biggest financial hub, Midtown Manhattan is holding strong in the United States as the most attractive market for businesses.