Whether it’s the new Tesla plant, the new NHL team or the arrival of the NFL in the form of the Raiders coming to Las Vegas, there is no doubt that Nevada is on the move. While hit hard during the Great Recession, Nevada has returned to its peak pre-recession employment with continued growth forecast over the next several years. In fact, Nevada is projected to add jobs at a 2.6% annual rate through 2020—the best forecast of any state, based on data from Moody’s Analytics.
While the gaming industry still leads the pack, Nevada has seen its share of industry diversification during the post-recession recovery. The lack of state income tax and other business-friendly regulations has made Nevada a hot spot for STEM industries (Science, Technology, Engineering & Math). Tesla’s $5 billion “gigafactory” and eBay’s $400 million data-operations expansion joins the likes of Apple and Microsoft in the Market. And the Zappos-sponsored reimaging of downtown Las Vegas as the next Silicon Valley is expected to continue driving the trend in the area as is Switch Communications $1 billion expansion of its existing mega-data center.
An overall solid economic picture, relative affordability and growth in jobs continues to push overall population growth, which has driven a strong housing recovery. In fact, there is only a 3-month housing inventory (6 months is considered stabilized inventory) which is driving continued development in the Las Vegas area, especially in the southern area of the Metro.
MEQ has over 8 years of experience in this Market and our strategy plays to the strength of its continued in-migration and extensive residential growth. Mass Equities’ has focused on small to mid-size retail development to take advantage of the expanded need for localized amenities within these sprawling residential communities. Our success has been driven by two unique Market advantages. First, our historical success with in-fill retail development with several national and local retail tenants has resulted in a stream of pre-leased retail development opportunities. Secondly, as co-owner of AIMS Construction, a Las Vegas-based Development & Construction enterprise, we have the ability to control the critical development process from start to finish, enhancing asset quality, the tenant experience and overall investment returns.