A Boston real estate firm has picked up several industrial buildings near the Raiders stadium, figuring the massive project will boost rent growth in the area, according to a broker on the deal.
TA Realty bought six buildings within a mile of the newly named Allegiant Stadium for $51.1 million total, property records show. The bulk purchase closed July 22.
The Raiders’ 65,000-seat domed football stadium at Russell Road and Interstate 15 is slated to open next year and has sparked a surge of interest in the surrounding, mostly industrial area a mile or so west of the Strip. Plenty of locals have figured developers will want to put up projects there to feed off the sports venue.
TA Realty, however, plans to operate its newly acquired buildings as industrial properties with rent-paying tenants, just as it would in any other location, according to Colliers International broker Dan Doherty, who worked on the transaction.
The new landlord figured the location would offer “very favorable rent growth” given the proximity to the stadium, but it does not have Raiders-related redevelopment plans, Doherty said.
He noted a lot of tenants might assume the buildings will get torn down, forcing them to move, “but thankfully for these that is not the case.”
A representative for TA could not be reached for comment.
Two parcels across the street from the stadium sold for big values after the Raiders bought their land in spring 2017, and brokers and buyers have called landlords to see if they’d sell.
But overall, there hasn’t been a tidal wave of real estate sales right near the stadium, though property values could rise as it nears completion, and some real estate pros have said they expect to see more deals as the NFL team gets closer to game day.
Cushman & Wakefield broker Travis Noack, an industrial-property specialist, said in March that a lot of landlords were stating they wouldn’t do anything yet, as they didn’t want to risk “leaving any money on the table.”
Doherty, for one, figures 2 million square feet of tenants will be displaced from around the Raiders stadium because of high rents, redevelopment and increased traffic.
Still, just because the Raiders are coming doesn’t mean the area is a safe bet for developers.
Nearby properties are mostly chopped into small parcels, ownership is fractured, and many sites have existing businesses, making it harder for developers to cobble together big project sites.
Plus, even if the stadium hosts 46 events annually, as has been predicted, the venue would still be dark for the vast majority of the year, meaning most days it won’t generate stampedes of visitors who could spend money at nearby retailers or food-and-beverage spots.