LAS VEGAS—JLL recently released its list of top 18 distribution markets. Markets from New Jersey, to Southeast Texas, to Florida and Minneapolis made the list. In addition, Las Vegas made the cut.
GlobeSt.com exclusively chatted with Xavier Wasiak, SVP of JLL Las Vegas on the subject.
GlobeSt.com: Please describe one factor that makes Las Vegas a top distribution market.
Xavier Wasiak, SVP of JLL: Las Vegas' central location in the Southwest region and proximity and ease of travel to Southern California, Phoenix and surrounding states has helped make it a growing top distribution market.
GlobeSt.com: What opportunities for industrial investors or tenants exist in Las Vegas?
Wasiak: Las Vegas will deliver over 2 million square feet of big box spec developments in the fourth quarter of 2016 and already has over 6 million square feet planned or under construction for 2017 delivery. This new construction has helped create an opportunity for larger e-commerce and distribution tenants to consider the Vegas market as a home. From an investment standpoint, our market offers the ability for investors who have seen cap rate compression in other more active markets, such as California, to acquire quality industrial product for higher yields.
GlobeSt.com: What submarkets are hidden gem areas for distribution that many aren't talking about? Why should we be paying attention to them?
Wasiak: The Vegas market is made up of three major submarkets: the Southwest, Henderson and Northeast/North Las Vegas. Most of the distribution is coming out of the NE/NLV submarket due to pricing and availability. Unfortunately there are no hidden gems that exist.
GlobeSt.com: What distribution trends will we be talking about in your market at this time next year?
Wasiak: With big box development expecting to continue and with leasing in this product type remaining strong, we may see project and building sizes continue to grow larger—nearing 1 million square feet, which would accommodate more and larger distribution tenants never before seen in the market.
LAS VEGAS—JLL recently released its list of top 18 distribution markets. Markets from New Jersey, to Southeast Texas, to Florida and Minneapolis made the list. In addition, Las Vegas made the cut.
GlobeSt.com exclusively chatted with Xavier Wasiak, SVP of JLL Las Vegas on the subject.
GlobeSt.com: Please describe one factor that makes Las Vegas a top distribution market.
Xavier Wasiak, SVP of JLL: Las Vegas' central location in the Southwest region and proximity and ease of travel to Southern California, Phoenix and surrounding states has helped make it a growing top distribution market.
GlobeSt.com: What opportunities for industrial investors or tenants exist in Las Vegas?
Wasiak: Las Vegas will deliver over 2 million square feet of big box spec developments in the fourth quarter of 2016 and already has over 6 million square feet planned or under construction for 2017 delivery. This new construction has helped create an opportunity for larger e-commerce and distribution tenants to consider the Vegas market as a home. From an investment standpoint, our market offers the ability for investors who have seen cap rate compression in other more active markets, such as California, to acquire quality industrial product for higher yields.
GlobeSt.com: What submarkets are hidden gem areas for distribution that many aren't talking about? Why should we be paying attention to them?
Wasiak: The Vegas market is made up of three major submarkets: the Southwest, Henderson and Northeast/North Las Vegas. Most of the distribution is coming out of the NE/NLV submarket due to pricing and availability. Unfortunately there are no hidden gems that exist.
GlobeSt.com: What distribution trends will we be talking about in your market at this time next year?
Wasiak: With big box development expecting to continue and with leasing in this product type remaining strong, we may see project and building sizes continue to grow larger—nearing 1 million square feet, which would accommodate more and larger distribution tenants never before seen in the market.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
