PR Properties Group

INDUSTRIAL PROPERTIES

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Although prices tend to be high in the Las Vegas valley for industrial property, there are compelling reasons to locate here. Las Vegas is a geographical hub to Los Angeles, San Diego, Reno, Phoenix and Salt Lake City, making it an obvious choice for warehousing and even some manufacturing. tenants are legitimately concerned about the long-run availability of industrially zoned property at feasible prices, making this an opportunity for saavy buyers and sellers wishing to reposition their holdings.

Las Vegas Valley industrial vacancy stood at 4.4% at mid-year 2007 while the average asking rate is $0.82 per sf. Net absorption through the first half of the year totaled approximately 2.7 million sf, and new deliveries totaled around 3.4 million sf. The highest vacancy rate is in R&D/flex space and the lowest vacancy is in warehouse/distribution space.
The R&D/flex market (industrial space built out for office or lab use) vacancy rates are above 6%. On the brighter side, warehouse/distribution vacancy rate are nearer to 3%.
The Las Vegas Valley's industrial market has a total inventory of over 92 million square feet as of mid 2007. Over 2.5 million sf of industrial property is under construction. While the market has been able to accelerate development activity, concerns regarding pricing persist.

If your industrial property has an overlay zoning like MUD1 or H1, then the industrial property value dwarfs your building value.
Rather than establishing their businesses in the Greater Las Vegas Valley, some industrial developers are looking at nearby outlying areas, such as Apex, Pahrump, Moapa and Mesquite. These towns could become 'industrial/business suburbs' to Las Vegas. While some of these areas lack current infrastructure, the benefits of locating in this hub make Las Vegas a great place for expansion.

Locating large-scale distribution firms and complimentary manufacturers to the Las Vegas valley requires a firm knowledge of the industrial market. Let PR Properties Group's expertise in the Las Vegas Industrial Real Estate market limit your risk and help you make the right decision.