What Is Powering Las Vegas’ Commercial Real Estate Boom?
The Mountain West Industrial Park, a 16-acre complex located near Rainbow Boulevard just north of the 215 Beltway, is a good example of a trend sweeping the Las Vegas Valley’s commercial sector.
Speculative industrial buildings — projects that start construction without a lease in place — have taken over, with a growing number of buildings sprouting up across the valley. But constructing these types of projects is a bit like gambling at any of Las Vegas’ casinos, said the developer of Mountain West Industrial Park, of which phase two is expected to be completed in 2025 at a price tag of $25 million.
Mike Nigro, president of Nigro Construction who built the Mountain West Industrial Park, said there are different levels of risk when building industrial spec, but it is always a gamble.
“First you have to buy the land, so then the first risk is the outlay of cash on the land,” he said. “Now, land has value whether you’ve developed it or not, and then a client like Jonathan has to put in significant dollars to design the project. Then the next phase is building the project and pulling the permits. That’s when the real risk starts because now you’re into say a $20 or $30 million project and you have to deliver it.”