2016 Las Vegas Real Estate Trends to Look Out For!
With all the news regarding high-speed railways and electric car companies setting up shop in Las Vegas, 2016 could prove to be a very active and exciting time for our real estate community. I could only hope to guess what benefits will come with a new factory and transportation line.
That being said, I’ve broken this post up into two segments: possible and continuing. Possible takes what I know to be true and adds the element of the unknown. Continuing trends are longer-term movements in the marketplace.
Projected Trends for 2016
1. New commercial property developments that are aligned with the rail and Faraday Future needs. Depending on how rapidly each of these companies gets up and running, we could be looking at a whole new segment of commercial real estate needs. If both projects break ground in 2016, as proposed, Las Vegas could see new retail outlets to service rail passengers, and commercial space dedicated to supporting the Faraday Future plant.
2. Residential properties taking off in North Las Vegas. If Faraday decides to build a manufacturing facility here, that will mean 13,000 local jobs. Wages from those jobs will be used for housing in our fair city, so look for a higher demand for housing in neighborhoods convenient to the facility.
Continuing Trends for 2016
1. Foreclosures. Foreclosures are still a reality in the desert. Las Vegas came in second for foreclosures in the nation as of the end of September. Default notices scheduled, auctions, and bank repossessions all count towards the total number of foreclosures. Unfortunately, foreclosures take years to be absorbed back into the market, so I feel that we will still see REO property as a trend next year.
2. Workspace evolution. Millennial momentum in the workplace is changing the commercial real estate landscape, and Las Vegas is a prime example of such changes. Office space isn’t what it used to be in the days of the Baby Boomers.
When I think of how office space back functioned when Baby Boomers were at the height of their careers, I think of massive corner offices with grand views. Television shows like Dallas come to mind, where JR had enough room in his corner suite for a couple of couches, a desk, and even a bar. Big guy, big money, big space.
That was some made-for-tv fun, but the reality was that success garnered some serious square footage in the company headquarters. The corner office was just as enviable as a prestigious title or a hefty paycheck. But like other styles of real estate, designs come and go. Of course having a corner office is nice, especially when you’re the boss and can nap on your plush couch when you need to recharge your smart batteries, but they aren’t in line with current demand.
Today companies are providing gyms in their buildings as a perk to employees. You’ll find space that was once used for a giant meeting table packed with treadmills.
The changing working dynamic puts a greater need for collaborative space in modern offices. Group projects, or even a collection of freelancers, make use of non-cube-farm set ups.
I’m sure you’ve seen a fair share of mixed-use commercial space recently. Retail chains like Starbucks are all over the mixed-use medium. They understand an 8:00 am meeting is brutal without your morning coffee. I think this trend will continue. It makes the best use of space for the shops and offices above.
3. The downtown revitalization. Downtown has room for residents as well as tourists. City officials are working on creating an environment that is friendly to visitors and home for Las Vegas citizens. Currently, housing downtown is scarce because of all the commercial development. Our economy thrives on money spent in these commerce-based establishments, but what about the employees who work there?
There are approximately 250 acres of vacant lots downtown, so I predict that we’ll see changes made to empty spaces. As much as I see in the news about this project, and how important it is to the city government, I think we’ll see Downtown trending for a few more years.
The most significant trend is that Las Vegas is recovering from the real estate crash from a few years ago. Revitalization projects, new construction, and potential new industries all show me that our economy is on the upswing. An enormous relief for all of us in the industry, and for homeowners in the area.
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