(To read more on the multifamily market, click here.)
LAS VEGAS-The Las Vegas Valley is taking on a different look: it's vertical, according to a study conducted by Restrepo Consulting Group LLC. The study reveals that more than 6,600 units or nearly 10% of multifamily development in the Las Vegas Valley's pipeline has a vertical design. In all, there are 71,519 units either under construction or being planned in the Valley.
John Restrepo of Restrepo Consulting Group LLC says the demand is there to absorb the vertical units going up. A total of 14 projects will have vertical elements to them. The study projects out to 2012. By then, some 122 projects will have broken ground.
Restrepo is not, however, as bullish on the projects as a whole. "A large percentage of the 122 projects are at best trying to gain their footing and at worst are on life support, because of high construction costs, poor management and location, lack of experience, lack of financing, or a combination of all of the above," he says.
The study takes a look at multiple submarkets in the Valley and reveals some of the pitfalls to viewing the region as a second home market. "Our research in a variety of markets shows that while Strip views are an attractive feature to many out of town buyers, the region lacks the ocean/water views that would make it as prominent a high-rise condo market as cities like Miami, Seattle, San Diego, Chicago and Vancouver," adds Restrepo.
One product that is showing some legs is mid-rise developments, particularly those with a mixed-use element. "We consider mid-rise projects to have from five to nine or 10 stories, built over or around parking facilities--of course the definition is fluid, depending on the market," says Restrepo.
The study reveals that while high-rise projects continue to go up in Las Vegas, "it's our opinion that mid-rise projects will be the dominant source of higher density housing for our residents for the foreseeable future." The study says the flexibility of mid-rise projects make them attractive to developers as they're able to pencil in both urban and suburban areas.
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