Appraisal Articles 2019 Free Appraisal Articles for Appraisers and the Public

Latest News

Note about "Views" reported on this site

Feb 7, 2014

I just want readers, contributors and potential contributors to realize that the...

This Site is Monitored

Dec 28, 2013

Articles that are not deemed contributory are removed from this site promptly, so we would...

New Site Template

Nov 30, 2013

Please pardon our somewhat painful transition, we have been working with

Demand and Price Changes Due to the Las Vegas Raiders Stadium

by Administrator on Feb 16, 2019 Market Conditions Articles 602 Views

Demand in the industrial real estate market is changing in the area surrounding the Las Vegas Raider’s stadium.  It’s happening.  Industrial buildings located there have been in demand for many years.  Most owners have constructed or purchased typical industrial buildings for uses like; warehousing, manufacturing and distribution.  The buildings located in the neighborhood have a great centralized location that has allowed owners to provide services to business on the Las Vegas Strip or to all of Las Vegas.

It wasn’t that long ago that real property values in the area surrounding the stadium conformed to a common industrial demand.  Industrial uses were dominant.  The market is however changing.  As the Stadium structure reaches skyward it has occurred to some that the market for improved industrial buildings is changing as demand for Stadium access, Stadium parking and peripheral uses like retail and hospitality will extend out and away from the stadium.

Factors external to a property extend outward as explained by the economic principal of externalities.  Price changes have and are occurring due to the stadium construction.  You may not be privy to them but there may be silent acquisitions going on that will change the area. 

How far west of Interstate 15 will the stadium impact really extend?  Common sense would tell you that Valley View Boulevard is likely to be a reasonable west boundary for Stadium-related effects.  It’s an existing arterial roadway that, beyond the immediate planned Stadium roadways, has the ability to move a lot of traffic to and from the Stadium area.

Will you see any properties for sale in the area affected by the Stadium development?  You probably will not until the Stadium is fully developed.  That doesn't mean that some deals have already been made.  When the development plans for the area surrounding the Stadium become clear, with Stadium-related and some secondary acquisitions completed, there will be those who acquire strategic properties.  Today it’s only February 2019 and it all just seems like a construction project.  When the 65,000 seat Stadium becomes a reality, and the neighborhood feels its impact, the real estate market will transition to accommodate it.

From an appraisal perspective, how do you know if a property has become worth more “as vacant” or as land than as it exists or “as improved?”  One way is to estimate its market rental rate.  If for example you have a 5,000 SF industrial building on a 0.50 acre site that can, based on its finish and condition, generate rent at $ 0.80 per SF per month triple-net (NNN) it can provide the owner with a return of about $ 4,000 per month or $ 48,000 per year.  If a capitalization rate of 6.5% is selected you have a value of about $ 738,462, that’s about $ 148 per SF.  So why would a property like that sell for $ 1,500,000 or twice as much?  The answer to that question is of course that its land value changed.

It’s happened in portions of Downtown Las Vegas where land values has move up and in many places prices are well over $ 80 per SF.  Demand for a property can change and its value for an alternate use can increase.  Value changes can render improvements worthless or make them simply good for a holding or interim use that does not provide a return on the value of the underlying land.

For more appraisal information contact Glenn J. Rigdon MA, MRICS, IFAS, ASA is a Las Vegas / Henderson Nevada based appraiser who can be contacted via email or via his business website known as Appraiser Las Vegas  (, or, or you can also click on “Contact Us” on the home page of this website or visit my public profile at LinkedIn at

Article source:



Articles: 339 Contact author

Narrative Report Writing 11 - Addendum

Mar 1, 2014 • 2176 Views

Refinancing Your Homes Mortgage

Feb 19, 2012 • 1494 Views

Most Recent Articles