"Given the current fundamentals in the market, speculative land sales have come to a near standstill," says Applied Analysis principal Brian Gordon. "The limited number of sales transactions occurring during the second quarter reflects previously contracted sales and near-term development deals. This overall slowdown has come at a price, as average land pricing has declined to levels witnessed three years ago. This trend is likely to continue until price points limit downside risk and reflect improvements in end-user demand for residential and commercial products."

The biggest deal of the quarter was the sale of 58 acres next to the Hard Rock Hotel on Harmon Boulevard—the former site of the W hotel-condominium and Las Ramblas condominium projects—for $751 million, or $12.8 million per acre. The seller was a TIC that includes Africa Israel Investments and Edge Resorts that valued the property at $625 million last year; the new ownership is Sapir TIC LLC.

The W Las Vegas property was acquired in mid-2005 for $108.2 million, or $5.15 million per acre. One year later, the Las Ramblas property was acquired for 55% more, $202 million, or $8 million an acre. Given this latest transaction, it took two years this time around to get a similar increase in value. The declining values and slowing value growth reflect current economics, Gordon says, which are impacted by a challenging housing market, tighter lending practices, rising commercial vacancies and increasing foreclosure activity.