Summary: BKM acquired Spencer Airport Center, its fourth asset in the Las Vegas market, at a significant discount to replacement costs. Spencer Airport Center is a 7-building 177,597 square foot multi-tenant industrial business park in a prime location, one block south of the airport and 3.5 miles from the I-15 Freeway.
Nevada businesses have added 32,700 jobs over the past year, most recently posting a private sector employment increase by 5,800 jobs in March 2016. Statewide employment bottomed in February 2010 at approximately 85%, and has since increased to 94%%, nearing its historical peak after adding 163,200 new jobs since that time.
With no state sales tax, weather-safe climate and business friendly environment, Nevada continues its upward economic trajectory making it one of the fastest growing states in the country with employment growth doubling the national average. The unemployment rate has been reduced by 1.1% over the past year, as compared to the national statistics, which were reduced by 0.5% over the same period.
Nevada’s relative affordability, access to a growing well educated labor force and lucrative tax incentives have attracted the interest of some of the nation’s largest businesses. Tesla Motors is in the process of completing its $5 Billion battery gigafactory, which is expected to more than double the world’s production of lithium-ion-batteries. This was a strong demonstration of Nevada’s critical initiative to bring a larger corporate presence and quality jobs within its jurisdiction. Apple has also identified the business opportunities in Nevada, buildings their fourth and largest data center, spanning 345 acres.
While construction, consumer spending and tourism continue to drive the local Las Vegas economy, the post recession growth is much more diversified and sustainable. Today, as the Las Vegas region closely approaches pre-recession levels of employment, the job growth is shared more equally among a variety of industries, which is a strong indication of a maturing local economy.
“Essentially every private-sector industry but mining and, to some extent, financial services, is showing noticeable growth,” said Bill Anderson, chief economist of the state Employment, Training and Rehabilitation Department. “So the kind of job growth we’re seeing is much more sustainable than what we were seeing before, when so much of our growth came from two sectors (retail and resort industries)”.
This is not to say development of the strip has subsided. Large projects such as Genting Berhad’s $4 billion Resorts World Las Vegas, the $350 million MGM-AEG arena, and the Las Vegas Convention and Visitors Authority’s $2.3 billion Las Vegas Global Business District, are rapidly adding construction jobs, which have been the traditional employment staple of years past. The continued investment into the Las Vegas Strip, coupled with more diversified post-recession recovery provides for attractive market fundamentals and bodes well for a continued and prolonged recovery in the industrial sector, which lags these key market indicators.