Business is booming.

Capital Rushes to Place Bets on Las Vegas Apartments


Many new investors—including both institutions and private buyers—bought their first apartment communities in Las Vegas just before the onset of the coronavirus pandemic. During the crisis, deal volume slowed. But as Las Vegas has reopened for business, multifamily investors have returned along with more new buyers, pushing property prices higher in one of the strongest markets for apartments in the U.S.

“Las Vegas is seeing an increase in terms of pricing because of increased investor demand—from both institutional and private capital,” says John Cunningham, executive vice president for JLL, working in the firm’s offices in Parsippany, N.J.

These investors pay top dollar, relative to the income from the properties. Cap rates for apartment sales in Las Vegas dropped to an average 4.6 percent in the first quarter of 2021, compared to 4.9 percent the year before and over 5 percent for most of 2019.

Since then, average cap rates in Las Vegas stayed stable at 4.6 percent through the third quarter 2021, as the average cap rate for apartment sales across the U.S. caught up, dropping to 4.7 percent across the U.S. in the third quarter of 2021, down from more than 5 percent in 2020 and more than 5.5 percent in 2018.

“Further compression stalled in Las Vegas,” says Jim Costello, senior vice president for Real Capital Analytics, based in New York City. “There was a shift to a premium on cap rates for Las Vegas for a bit, and it seems that the premium was too much.”

Cap rates have stayed low in Las Vegas even as apartment rents surged higher in 2021. More in investors also crowded into the metro area this year. Over the first three quarters of 2021, the amount of money investors spent on apartment properties in grew more in Las Vegas almost anywhere else in the U.S.—both in terms in the volume of deals overall and the average price per unit of apartment properties, according to RCA.

Investors spent $2.5 billion to buy apartment properties in Las Vegas in the first three quarters of 2021, according to RCA. That more than three times (up 249 percent) the amount of money they spent during the same period in 2020. The volume of investment grew more quickly in Las Vegas than any other top apartment market except San Diego, where the volume of investment grew 252 percent. The prices investors pay for properties in Las Vegas also rose over the first three quarters of 2021, rising more than 20 percent, according to RCA.

These investors in Las Vegas are picking up where they left off before the coronavirus pandemic.

Just prior to the pandemic, deal volume was surging in Las Vegas at a stronger pace than the U.S. overall. The volume of deals in Las Vegas fell more than the rest of the U.S., in part over fears around travel and tourism, but also because Las Vegas is a smaller, has historically been a volatile market prone to bigger swings, according to RCA.

Institutional investors bet big on Vegas

The investors in Las Vegas include many who are new to the city.

“Throughout 2021, we have seen a surge in both new private capital sources as well as a significant inflow of institutional investors that have specifically targeted Las Vegas,” says Charles Steele, managing director for JLL’s Capital Markets Group, working in the firm’s Phoenix office. “Las Vegas has historically seen significant private capital investment activity while lagging from an institutional investment perspective.”

New investors include SB Real Estate Partners, an investment firm based in Orange County, Calif., which paid $67 million in early November for 241 garden apartments at The Russell Apartments in West Las Vegas.

LaSalle Investment Management, headquartered in Chicago, also spent $155.6 million in October to buy the 456 apartments at The Curve in the Spring Valley suburb of Las Vegas from the local investors at The Calida Group.

Strengthening fundamentals draws investors big investors

Investors used to see Las Vegas as a small, volatile market for apartment properties. The ability of renters to sign leases and pay rent at apartment communities seemed too dependent on how well the tourism business was doing in the city’s casino economy.

That’s changing as this desert city grows and diversifies.

“While Las Vegas has been volatile in the past, that is no longer the case,” says Cunningham. “Las Vegas has proven to be one of the most resilient cities in the world.”

Las Vegas has recovered quickly from the coronavirus pandemic, which shuttered over 150,000 hotel rooms in the worst days of the crisis. Tourism and revenue is now surpassing pre-pandemic levels of tourism and revenue, according to JLL. The economy of the metro area has also become more diverse, with a population of 2.5 million and new investments in health care, technology and manufacturing.

“Altogether, the Las Vegas local market story is one of resiliency, diversification and desirability—all of which support forward-looking multifamily market success,” according to the Arbor-Chandan Large Multifamily Opportunity Matrix, which put Las Vegas at #1.

Average apartment rents already grew 14.6 percent in the second quarter of 2021 compared to the year before, according to Yardi Matrix. The occupancy rate for stabilized apartment communities was also very high, at 96.0 percent in the second quarter.

Las Vegas is now forecast to create more jobs and new households than most other Western markets in the mid- to long-term, according to JLL. Average rents are also forecast to grow more quickly here than in most other cities in the region.

“Las Vegas is becoming a top-tier investment city as a result of increased population, affordable housing, low taxes and diversification of the economy,” says Cunningham.

All this will push the demand for apartments higher. But Las Vegas developers are only expected to open 3,688 new apartments in 2021, a relatively restrained 2.36 percent increase to the inventory. In comparison, developers will increase the inventory of apartments much more in 2021 in Denver (4.92 percent), Phoenix (5.33 percent) and Austin (7.59 percent), according to JLL.

Source link

  1. Emjeys says

    levaquin 250mg pill order generic levaquin

  2. Wvuxti says

    avodart 0.5mg cheap zofran 8mg for sale buy generic zofran 4mg

  3. Cjewat says

    buy aldactone online cheap diflucan medication buy diflucan generic

  4. Bvhpto says

    buy ampicillin 250mg without prescription ampicillin 250mg canada order erythromycin 250mg online

  5. Dtepmj says

    sildenafil oral buy careprost generic buy methocarbamol generic

  6. Khkbwi says

    sildenafil 100mg without prescription sildalis oral buy estradiol 2mg generic

  7. Xcpyit says

    lamotrigine 200mg drug order lamictal 200mg pill order tretinoin gel sale

  8. Pdzofz says

    purchase tadalafil generic order tadacip generic brand voltaren 100mg

  9. Ghrjnw says

    buy accutane generic buy isotretinoin 20mg sale purchase zithromax without prescription

  10. Erzive says

    order indomethacin generic buy generic amoxicillin 250mg buy amoxicillin 500mg without prescription

  11. Qnivne says

    buy cialis online cheap tadalafil viagra 50mg cost

  12. Urhoxf says

    purchase anastrozole sale order arimidex 1 mg without prescription order viagra 100mg pill

  13. Ofbyaf says

    tadalafil 40mg generique pas cher acheter 50mg gГ©nГ©rique sildenafil en france acheter 25mg gГ©nГ©rique sildenafil en france

  14. Mpofwl says

    tadalafil 20mg für frauen sildenafil 100mg kaufen für männer viagra 50mg generika rezeptfrei kaufen

  15. Weslrt says

    purchase accutane zithromax brand ivermectin over the counter uk

  16. Toepdk says

    brand doxycycline 100mg doxycycline 200mg over the counter furosemide online buy

  17. Gaspao says

    cost altace 10mg azelastine 10ml sale buy astelin 10ml without prescription

  18. Muwpdk says

    clonidine 0.1mg us clonidine 0.1 mg brand cost spiriva 9mcg

  19. Cipaww says

    purchase buspar without prescription order dilantin 100 mg pills cost oxybutynin 5mg

  20. Pbyeur says

    buy hytrin online oral azulfidine 500mg sulfasalazine 500mg canada

  21. Zmcxkn says

    order fosamax 70mg sale order fosamax pepcid 40mg uk

  22. Mylzcq says

    buy generic benicar 10mg calan medication diamox online

  23. Qtuirp says

    prograf tablet purchase tacrolimus sale urso 300mg canada

  24. Jpmzzp says

    imdur 20mg uk brand lanoxin 2250 mg buy telmisartan 20mg generic

  25. Fxwtql says

    zyban 150 mg cost buy strattera 10mg online buy quetiapine 100mg generic

  26. Vgbqov says

    molnupiravir 200 mg oral buy cefdinir 300mg online cheap lansoprazole tablet

  27. Whidmo says

    sertraline 50mg sale purchase escitalopram generic order viagra pills

  28. Ebuqwi says

    liquid cialis buy phenazopyridine pills amantadine 100 mg generic

  29. Tcohef says

    revia oral order letrozole 2.5mg online cheap order abilify 30mg

  30. Ramqzs says

    order provera 5mg online cheap cyproheptadine over the counter buy periactin 4mg without prescription

  31. Krpjhr says

    generic modafinil canadian discount online pharmacy stromectol tab 3mg

  32. Njdtpb says

    order fluvoxamine 50mg pill glucotrol online buy glipizide 5mg drug

  33. Mufbuz says

    accutane 20mg oral order amoxil 1000mg generic deltasone without prescription

  34. Oaaxgx says

    buy piracetam 800 mg sildenafil uk buy sildenafil 50mg pill

  35. Szyhdd says

    cialis pharmacy tadalafil 5mg cheap order sildenafil

  36. Vjwuub says

    usa pharmacy cialis clomipramine for sale online generic anafranil

  37. Lcjsay says

    purchase chloroquine pill brand baricitinib 4mg buy olumiant 2mg pills

  38. Vgqenl says

    itraconazole 100 mg brand buy prometrium 100mg sale purchase tindamax online

  39. Zdjpvy says

    order metformin 500mg online glycomet online buy tadalafil generic

  40. Bynhzk says

    olanzapine 10mg for sale order bystolic 20mg order diovan 160mg online cheap

  41. Ozdmsu says

    buy norvasc 10mg online cheap sildenafil without a doctor’s prescription cialis 10mg uk

  42. Jklwjg says

    buy clozapine 50mg generic purchase decadron decadron 0,0,5 mg oral

  43. Tcluou says

    viagra 100mg for sale sildenafil 50mg ca order lisinopril 2.5mg pills

  44. Tynzag says

    zyvox 600mg tablet blackjack card game gambling sites

  45. Hrjmde says

    omeprazole 10mg pills prilosec 20mg ca roulette games

  46. Lezrnw says

    buy lopressor 100mg generic buy levitra 20mg pills purchase vardenafil pills

  47. Qstciz says

    letter writing services blackjack online live casino slots online

  48. Wccsqd says

    vardenafil 20mg cheap medrol online medrol 4 mg over the counter

  49. Rflivg says

    thesis website buy nothing day essay sildenafil 20mg

  50. Qqokox says

    clomid brand clomid cheap parx casino online

  51. Rfvpoi says

    cialis without a doctor prescription tadalafil buy online purchase viagra

  52. Hienka says

    aristocort medication claritin for sale cheap desloratadine

  53. Hhhrmx says

    purchase priligy online cheap purchase cytotec pills synthroid 150mcg pill

  54. Hpwgyu says

    cialis order online tadalafil cost viagra 100 mg

  55. Lwnwfp says

    buy generic xenical order zovirax 800mg online order acyclovir 400mg sale

  56. Zcksyu says

    buy tadalafil 40mg without prescription buy clopidogrel online cheap plavix 150mg pill

  57. Byhyqc says

    zyloprim 300mg ca generic zyloprim 300mg ezetimibe 10mg usa

  58. Dmikiz says

    generic methotrexate 5mg order coumadin 5mg online reglan 20mg brand

  59. Iwlvcg says

    domperidone 10mg tablet purchase motilium sale buy flexeril 15mg for sale

  60. Oxmrjo says

    buy losartan 25mg purchase losartan online cheap topamax 200mg over the counter

  61. Sfxxve says

    ozobax pills ozobax medication ketorolac pill

  62. Vijyem says

    order sumatriptan 25mg online cheap sumatriptan 25mg sale avodart cheap

  63. Yrzpar says

    buy gloperba generic free spins no deposit casino moons online casino

  64. Cjvvlq says

    order zantac 150mg pill meloxicam tablet purchase celecoxib

  65. Yslxmj says

    best online blackjack real money play poker online money poker online

  66. Xlppov says

    buy tamsulosin 0.4mg generic buy flomax online buy generic spironolactone 25mg

  67. Hlrbfg says

    cheap tadalafil without prescription order ampicillin sale buy cipro 500mg generic

  68. Fgnppu says

    simvastatin 20mg ca buy valtrex 500mg generic order finasteride 5mg online cheap

  69. Jiaozb says

    flagyl 200mg canada augmentin over the counter bactrim online order

  70. Jmzoxb says

    order fluconazole 100mg generic generic viagra sildenafil for sale online

  71. Qvssth says

    keflex 125mg pills order generic erythromycin erythromycin pill

  72. Opndrh says

    buy cialis canada cialis coupon cvs order sildenafil sale

  73. Bqhdev says

    purchase sildenafil online viagra sildenafil 25mg generic tadalafil 40mg

  74. Vjhrep says

    ceftin 500mg pill purchase cefuroxime generic order methocarbamol 500mg online cheap

  75. Znnrof says

    wind creek casino online games that roulette order cialis online cheap

  76. Wpyvae says

    buy generic desyrel 100mg sildenafil 50mg drug buy sildenafil online cheap

  77. Tlenjf says

    pay for assignments australia order stromectol 6mg generic generic ivermectin for humans

  78. Rkeqsp says

    sildenafil fast shipping estrace 2mg for sale purchase lamictal sale

  79. Tnrdsh says

    buy generic deltasone 40mg buy amoxil 500mg generic buy amoxil 250mg for sale

  80. Nbzatk says

    zithromax 250mg for sale order neurontin 600mg generic buy generic gabapentin

  81. Uuyfuo says

    free blackjack games casino gambling buy tadalafil online

  82. Ptlcea says

    gambling games order stromectol order modafinil 200mg for sale

  83. Pkejox says

    furosemide 100mg cheap doxycycline 200mg over the counter plaquenil 400mg pill

  84. Ttvtny says

    deltasone 10mg over the counter prazosin pill vermox 100mg cheap

  85. Tlfmcu says

    buy sildenafil online cheap order sildenafil generic order generic budesonide

  86. Echvxz says

    tretinoin cream cost tadalafil online order purchase avana for sale

  87. Uchmxl says

    order tadalafil 20mg pills buy indocin without prescription indomethacin 75mg cost

  88. Twsobs says

    buy lamisil buy generic suprax 100mg buy amoxicillin 500mg pill

  89. Lsrbmy says

    order naprosyn online cheap purchase cefdinir prevacid over the counter

  90. Vdbraz says

    purchase clarithromycin for sale order clonidine 0.1 mg generic order meclizine 25mg without prescription

  91. Ckjsqi says

    buy generic albuterol 100 mcg pantoprazole 40mg oral order ciprofloxacin 500mg sale

  92. Lhewdm says

    spiriva 9mcg tablet generic tiotropium bromide 9mcg purchase terazosin for sale

  93. Rugkqd says

    order montelukast 5mg for sale viagra fast shipping viagra 100mg tablet

  94. Mpagnl says

    pioglitazone us actos 15mg price sildenafil pills 100mg

  95. Qpkilg says

    buy ivermectin 12mg for humans buy avlosulfon 100mg sale dapsone online

  96. casino hacks says

    fake casino game
    online casino hacks
    casino slots games

  97. Clvgdt says

    real money casino app online gambling money sports gambling best casino games

  98. Pphsvh says

    casino online casino online usa online casino for real money

  99. Fdohim says

    cheap altace order altace 5mg sale order arcoxia sale

  100. Silaswesee says
  101. Dzjvyd says

    order doxycycline 100mg online cleocin 300mg canada cleocin buy online

  102. Yhmcyw says

    buy dissertation online purchase sulfasalazine buy azulfidine without prescription

  103. Dannysoigh says

    cialis tadalafil 5 mg precio espana comprar cialis 5 mg

  104. Jamesvek says

    cialis cialis 5 mg generico precio comprar cialis 5 mg

  105. Sakjjk says

    order benicar online cheap depakote cost buy depakote 500mg pills

  106. Knvffw says

    acetazolamide order online buy imuran 25mg pills order generic azathioprine

  107. Ummgrv says

    temovate online order purchase clobetasol generic cordarone cheap

  108. Jgommc says

    digoxin tablet telmisartan generic order molnunat

  109. Samuelhig says

    drug information and news for professionals and consumers. Some are medicines that help people when doctors prescribe.
    ordering sildenafil online without prescription
    Generic Name. Some are medicines that help people when doctors prescribe.

  110. Mcsmij says

    buy amoxicillin sale buy stromectol pills ivermectin cost in usa

  111. Mhnalz says

    coreg 25mg pill carvedilol 25mg tablet amitriptyline ca

  112. AlbertPhync says

    Long-Term Effects. drug information and news for professionals and consumers. best pharmacy buy tadalafil
    Some trends of drugs. Comprehensive side effect and adverse reaction information.

  113. Zzewzj says

    buy dapoxetine avana 100mg usa order motilium 10mg sale

  114. Ydwxvg says

    buy alendronate 70mg pills fosamax us buy motrin 400mg generic

  115. Kuwmxo says

    order indocin 75mg brand cenforce 50mg order cenforce 50mg without prescription

  116. AlbertPhync says

    drug information and news for professionals and consumers. Everything what you want to know about pills. cialis 20 mg dosage
    All trends of medicament. Get here.

  117. Gqjxbb says

    order nortriptyline generic order paroxetine 10mg sale paxil cost

  118. Dmpnfx says

    doxycycline price chloroquine oral order generic medrol

  119. Kjoimz says

    order pepcid 20mg generic mirtazapine generic buy remeron pill

  120. Yjhhgb says

    tadalafil oral order tadacip 20mg pill order generic trimox 250mg

  121. Tmusbi says

    buy ropinirole 2mg for sale purchase calcitriol for sale purchase trandate online cheap

  122. Mgwefs says

    cheap tricor 200mg viagra 50mg order sildenafil 50mg online

  123. Jwfucf says

    esomeprazole 40mg uk purchase esomeprazole online cheap buy furosemide for sale

  124. Wtxwfk says

    order tadalafil 20mg pills Branded cialis cheap sildenafil without prescription

  125. Vwbqeq says

    cost minocycline order gabapentin sale purchase terazosin online

  126. Cami Halısı Kırklareli says

    Great post thank you. Hello Administ . Metropol Halı Karaca Halı Öztekin ve Selçuklu Halı Cami Halısı ve Cami Halıları Türkiye’nin En Büyük Cami Halısı Fabrikasıyız…

  127. Onwin Güncel Giriş says

    Thank you great posting about essential oil. Hello Administ . Metropol Halı Karaca Halı Öztekin ve Selçuklu Halı Cami Halısı ve Cami Halıları Türkiye’nin En Büyük Cami Halısı Fabrikasıyız…

  128. Ionwln says

    cialis 5mg drug mail viagra online ed medications

  129. Tsbhrr says

    glucophage 1000mg ca buy metformin 500mg generic buy tamoxifen 10mg generic

  130. Artkbw says

    provigil usa order generic modafinil 200mg buy promethazine

  131. Zhhjdk says

    order generic clomid 50mg buy prednisolone pill prednisolone 40mg over the counter

  132. Yhxgjs says

    order prednisone 20mg online cheap isotretinoin 20mg canada buy amoxil online

  133. Kggssy says

    order accutane 10mg pill deltasone 5mg pill buy ampicillin 250mg online

  134. Lnmlny says

    buy ed pills us purchase pregabalin buy finasteride online cheap

  135. Wllbrv says

    ivermectin 3 mg for humans for sale buy stromectol 12mg generic order deltasone 40mg pills

  136. Lytaww says

    order zofran 8mg without prescription sulfamethoxazole without prescription bactrim 960mg brand

  137. Jndtto says

    buy allergy pills onlin albuterol pills order augmentin 625mg for sale

  138. Anwhkd says

    order prednisolone pill order neurontin 800mg generic buy furosemide online diuretic

  139. Qwlmml says

    buy modafinil 100mg generic lisinopril price buy lopressor 100mg without prescription

  140. ShawnTeace says
  141. Robertlob says
  142. JasonOreby says

    схема обналичивания денег

  143. Mgoeuu says

    doxycycline price buy generic doxycycline 100mg order acyclovir 800mg sale

  144. Kevinfret says

    готовые проекты бизнеса
    взять кредит наличными

  145. Bgdrax says

    order avodart generic avodart oral order xenical sale

Leave A Reply

Your email address will not be published.