Commercial Real Estate: Las Vegas CBRE Becomes World's Largest Investment Firm
Las Vegas commercial real estate experts had been cautiously optimistic about the industry's performance in 2016. Michael Newman, managing director of the Las Vegas office of CBRE Group, had led the firm to become the world's largest in commercial real estate services and investment.
The Fortune 500 company was headquartered in Los Angeles, but hired 110 employees in the Las Vegas Valley. Its managing director Newman recently announced where his firm and the commercial real estate in Las Vegas in general appeared to be heading westward.
The firm had been responsible for over $1.2 billion of last year's real estate transactions. CBRE's headline-making deals included the famous listing for Fontainebleau Las Vegas, the tallest tower on the Strip; the listing of the 60-plus acre space between Planet Hollywood and Hard Rock, and the biggest remaining undeveloped area in the resort corridor. The firm's deals also listed Stirling Club at Turnberry Place and the iconic Las Vegas Country Club; the overall sale of 64 properties at Sky Las Vegas; as well as reached a milestone of the 15-year, $13.2 million lease at Prologis Las Vegas Corporate Center, according to a report from Vegas Inc.
The Las Vegas commercial real estate experts stated that even only three months in, early signs showed promise of 2016 being the most positive year in 10 years. The industrial market took in 4.6 million square feet in 2015, and signs pointed to more absorption in 2016 as seen in the robust development projects experienced from companies such as Prologis, VanTrust, Panattoni Development, the Pauls Corp., Dermody Properties and Suncorp.
Las Vegas commercial real estate market had missed opportunities because it did not have existing industrial inventories readily available to allow manufacturing, e-commerce and distribution projects. That challenge was addressed by the introduction of industrial businesses that were completed in 2015 or will be completed in 2016, according to a report from Nevada Business.