BLM   The BLM manages nearly 48 million acres of public land in Nevada, comprising 68 percent of the State's land base.  Nevada's population is growing faster than any State in the nation. As a result, planners and developers in Las Vegas, Reno, Sparks, Henderson, and Carson City look to BLM land as they deal with the pressures brought by rapid growth. Nowhere is this pressure more acute than in the Las Vegas area. In response to the critical need for space in the Las Vegas Valley, Congress passed the Southern Nevada Public Land Management Act of 1998. Under this law, BLM-Nevada is in the process of auctioning off nearly 27,000 acres of the valley's public land. Eighty-five percent of the land-sale proceeds will remain in Nevada, ten percent of the land-sale proceeds go to the Southern Nevada Water Authority and five percent to the Nevada State Permanent School Fund. 

The BLM holds two land sales per year and will continue until all 27,000 acres are sold.  In 1999 the first public auction by BLM, prices averaged $90,000 an acre.  In 2005, the average price per acre was $479,200.  The area with the highest average price per acre in the fourth quarter 2005 was the city of Las Vegas, with an average price at more than $700,000. When the numbers are computed at a median price per acre, the numbers in almost all jurisdictions hovered around the $500,000 per acre mark. Henderson was at about $450,000 an acre in the fourth quarter 2005.

Land is so precious that developers drive up the prices whenever the bureau releases parcels at auction. The average price of land sold in 2005 was $479,000 an acre, a 38% increase over 2004.  A 0.84-acre lot on Las Vegas Boulevard sold for $5.5 million. The limited supply of expensive land is curtailing suburban sprawl and increasing density in downtown Las Vegas by driving developers to go vertical and build high-rise towers

Residential land:  Most of the major builders are well represented in the Las Vegas market.  Currently we have over 350 new home subdivisions scattered through out the Vegas valley representing single family homes and condos from entry level to million dollar homes.  Large parcels for development are increasingly difficult to acquire and smaller parcels suitable for building are at a premium.  Still - builders are finding a way to acquire product and build homes for a profit such as zero lot line developments and 3 story homes.

Multifamily land:  Due to the condo conversions of many of our prime apartments lately, there is a dire need for more apartments in the area.  Existing apartments are selling at cap rates of 4% to 7%.  While there are still acres available suitable for multifamily use, they tend to be between 2 1/2 and 10 acres in size with 5 acre parcels being the norm.  With the rising rent structure and the anticipated surge of people moving to Las Vegas seeking jobs, the rental market for apartments is very tight right now.

Retail land:  Construction is booming.  Space is leasing almost as soon as it is being offered in the prime locations.  With vacancy rates below 5%, we expect the demand for viable locations to continue to be in strong even though there are currently millions of commercial square footage under construction or in the planning stage.

Industrial land:  The demand in the other areas for land has led to developers trying to rezone industrial land to a higher value use such as residential.  Their success has created a shortage of property suitable for industrial development at a price point that can compete with existing developments.  As in the other sectors, industrial lease rates are on the rise and now command rents of between $.60 and $1.50.

The shortage of land for development creates opportunity for the savvy developer

If you or your company has an interest in adding an experienced land broker to your team, contact Mike Federighi for assistance.  We are always looking for land opportunities for our clients and may already know of the right property for you!

Terry Barone

 Broker

(702) 682-5202