Brad looks forward into the 2015 Las Vegas real estate market.
For those regular readers of my blog, you will notice that this year’s version of my annual “Looking Forward” blog is being posted late. But I have a very good reason: TR Realty is on fire.
I have been so busy thus far in 2015 that it has taken me this long to finish this blog, which I traditionally publish immediately after the first of the year. That should indicate just how busy we have been to start 2015.
Last year, 2014, turned out to be very impressive for TR Realty, including substantial growth in virtually every measurable aspect of our company. The year included for TR Realty: a major move into our huge new facility; a phenomenal Grand Opening event, which saw a record number of visitors to any real estate grand opening event in Las Vegas; growth in the number of managed properties; an increase in market share; a large influx of new agents into our company; the addition of an additional staff member; private offices offered for the first time; and countless other improvements, adjustments and betterments.
Beyond the walls of TR Realty, the Las Vegas area also had a strong year, with almost every indicator looking positive. Real estate prices, decreases in short sales and foreclosures, visitor traffic, new construction (both residential and commercial), large-scale projects, capital investment, gaming revenue, employment, population growth and many other factors all skewed in the right direction.
So what does 2015 have in store for us? Continued improvement, for sure, to say the least.
I am extremely optimistic for 2015, more so than I have been in several years. And my positive feelings include both TR Realty and the Las Vegas economy in general.
We should see unemployment numbers continuing to tick downwards, including and especially in construction-related fields. And if there are more jobs, and better jobs, and people feel more stable and confident in their own personal financial matters, then that bodes well for all of us in all aspects of the economy.
I predict that 2015 will be a year of great strength for the Las Vegas area. Different than 8-10 years ago, this time the growth has sprung from a position of stable footing, not a bubble. We have made some strides toward diversifying our local economy, though nowhere as much as I would like to see. I believe that although growth and increased prosperity will be widespread throughout the area, the southwest will be the big winner this year. Most of the new residential construction will take place in the southwest, as will a disproportionate share of commercial construction. We have already witnessed the opening of the fantastic Downtown Summerlin project toward the end of 2014. Following that will be the new IKEA, along the “curve” of I-215. And that will attract a whole new spurt of development in that area.
Elsewhere in the valley, expect a spring/summer launch of the new City of Rock project at the corner of Las Vegas Boulevard and Sahara Avenue, an outdoor concert arena that is being built to accommodate more than 80,000 attendees at a time. Almost across the street (and also amazingly close to our office) should see the construction of a new basketball arena, immediately south of the SLS Casino, on the east side of the Strip. Just a stone’s throw further down the Strip will be the new Resorts World Casino project, when completed a 6,500+ room mega-project to include hotels, casinos, shops, restaurants and more, on the land that used to house the defunct Stardust, and was once slated to be Echelon Place.
Located behind the always-popular New York-New York Hotel and Casino and the elegant Monte Carlo Hotel and Casino will be the new MGM Arena, a 20,000-seat indoor venue intended to host boxing, concerts and other miscellaneous events. Construction is already well under way and visible from the Strip side as well as from the rear while driving on I-15.
These projects follow the 2014 opening of Project Linq on the Strip, which includes the world’s tallest observation wheel. Early indicators are that this will be a very successful project. And other major properties such as Bally’s, Monte Carlo, New York-New York, Caesars and others have been investing quite heavily lately to expend, upgrade and improve the treasures that they already are.
I am also optimistic about the prospects for downtown Las Vegas. The arrival of Zappo’s, and even more importantly it’s brilliant visionary CEO Tony Hsieh, promises to be the ultimate catalyst for permanent positive change in the downtown area. Downtown has never been more exciting and vibrant that it is morphing to be right now.
Regarding the Las Vegas real estate market: after a pretty stable first quarter of 2015, which could have seen a significant bump up in inventory but did not, I believe that the rest of the year will be very active. We have been extremely fortunate that interest rates have not moved much. We have been equally fortunate that Las Vegas housing is now ranked as one of the most affordable of any major city in the US. Sales activity should increase substantially this spring, with inventory consequently dropping, prices moving upwards, and increased competition for the best and best-priced residential properties. And after several years of a stagnant commercial real estate market, we will see that 2015 turns out to be a very strong year for shopping centers, hotels, office buildings, industrial spaces and land, with the most noticeable successes coming in newer areas of the city.
How could anyone look at all of this and not be brimming with palpable confidence and optimism? Can you sense my positive feelings about 2015? Need I say more?
And leading the way in our industry with exponential growth and increased market share will be TR Realty: the best located, technologically-savvy, environmentally-friendly, agent-centric, well-respected real estate brokerage anywhere in the Las Vegas metropolitan area.
TR Realty has never been better or stronger than it will be in 2015. What an honor it is to be at the helm of this incredible operation.