There’s nothing like being in the know about industry trends and insights. We make it a practice to stay on top of all factors involving and affecting the Commercial Real Estate Market for our clients. Last week was no exception.
Our President George Garcia attended the January 2019 IREM Las Vegas Chapter / CCIM Southern Nevada Chapter Forecast, where the latest trends were reviewed across various sectors in the Southern Nevada CRE Market.
Here are a few take-aways from the forecast event:
- For 2019, industry thought-leaders do not see the “R” word (Recession) as part of the year’s language. Rather, just the “V” word (Volatility) is a more practicable approach. While the year may bring some sense of market increases and decreases, they look as if they can be managed with sound strategies in place.
- Predictions point to 75 new homes per day for the next 5 years. Word is that Las Vegas and Southern Nevada continue to be an attractive alternative for many, given a healthy job market and other factors.
- A shortage of Workforce Housing is present. Average home prices have moved up the scale due to a prosperous economy, expanding population and increased home starts, leaving a scarcity of Workforce Housing in Las Vegas and parts of Southern Nevada.
- The Median Income needs to rise. Trending lower than the median U.S. household income, area analysts realize the need for increase. It is hoped statewide income levels will balance closer to the national average, which seems eventually possible with current economic growth.
- Costs to build in labor, land and materials is an issue. The region’s fast-growing status combined with rising materials’ costs are compounded with shortage of labor due to the solid job market and fears of tariffs. This presses development toward higher construction costs.
- The number one super sector in this business cycle is “professional and service,” so the Las Vegas Office Market should benefit. Forecasters see new office starts having a potential uptick or better.
- The cost of talent, not Real Estate is king. This statement packs a punch in terms of the importance (and considerations surrounding costs) of employing and partnering with top-tier CRE professionals and leaders who are movers and shakers.
Stay tuned to our blog and social media channels for more from our G.C. Garcia, Inc. trend-watchers and other industry experts we know, admire and with whom we work.
For our developer, redeveloper and business entrepreneur clients and contacts, email or call us any time with your questions and feedback.
~ The G.C. Garcia, Inc. team