LAS VEGAS-The number of properties trading hands here slowed during the third quarter and pricing declined from mid-year, according to Applied Analysis. The locally based business advisory attributed the results to a slowdown in the residential market, concerns regarding pricing and overall interest rates.

The report found that 484 acres of vacant property sold during the third quarter of 2007, which is a 45% decline from the 881 acres sold in the third quarter of 2006. Excluding premium-price resort property transactions, sales averaged $677,300 per acre in the third quarter, which is 5.7% below the second quarter but 1.5% higher than the third quarter of 2006.

The third quarter results mark the fifth consecutive quarter with less than 1,000 acres changing hands. The trend follows 19 straight quarters of at least 1,000 acres changing hands. In 2004, some 13,000 acres changed hands.

Applied Analysis principal Jeremy Aguero says that while market average land prices in Las Vegas will continue to moderate from quarter-to-quarter based on the mix and size of parcels transacted, there is one trend that has prevailed since the pricing run-ups in 2004 and 2005–sales volumes, or the amount of property changing hands, has declined steadily for the past two years.

“The number of transactions has been impacted by the demand for improved uses, supply constraints and prohibitive pricing levels,” he says. “We may see land owners without a reasonable exit strategy face challenges during the next several quarters, particularly those that entered the market late in the game.”

In the resort sector, 73 acres changed hands during the quarter. Much of that was a four-parcel, 59-acre sale at the northeast corner of Harmon Avenue and Koval Lane for $10.6 million per acre, or $625 million. Africa-Israel Investments acquired the property, which includes the former W Las Vegas, Las Ramblas and DR Horton land holdings. An email to Africa-Israel CEO Erez Meltzer did not immediately respond to an email seeking comment on the company’s plans for the site.

“Land in Las Vegas remains a highly valuable commodity, which is clearly evident in the coveted resort corridor,” says Aguero’s partner Brian Gordon. “Additionally, the valley’s de facto growth boundary places market expansion limitations on the market as a whole. Despite a long-term limitation, shifts within the present housing market continue to place downward pressure on demand for raw residential land. We expect this trend to continue through the third quarter of 2008 as housing inventory levels will likely remain elevated and pricing remains unstable.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt. Multifamily Fall 2024Event

Join the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.