Updated October 12, 2022 - 1:35 pm
A Chicago real estate firm broke ground on a big industrial building near the Las Vegas Motor Speedway, the latest such project in an area that’s been flooded with big-box development.
CA Ventures announced last week that it started construction on a 408,566-square-foot distribution facility called Nellis Landing Logistics Center. The one-building project is scheduled to be finished in July 2023.
Located off Tropical Parkway near Interstate 15, the facility is being developed in partnership with German asset manager DWS Group.
According to a news release, the project site is in the “epicenter” of e-commerce and logistics in the southwest.
Southern Nevada’s industrial real estate market has grown substantially over the last several years with an ongoing surge of construction after the pandemic hit. The public health crisis accelerated people’s shift to online shopping, fueling demand for more distribution space.
The Speedway area has been an especially popular spot for warehouse construction lately, though according to real estate pros, land prices there have soared and the tally of available project sites has shrunk.
NorthPoint Development partner Geoff Griffin, whose firm is building a warehouse complex in North Las Vegas’ Apex Industrial Park, recently said the Speedway area is “essentially built out.”
Underscoring that area’s growth and the rise of e-commerce, online retail giant Amazon has multiple big buildings near the Speedway. At least three of them traded hands within the past five years.
Amazon’s buildings all sold a year or so after they were built, and the prices skyrocketed.
A Boston investment firm acquired an 857,000-square-foot Amazon warehouse for $226.4 million in April as part of a two-building acquisition at Tropical and I-15, property records show.
By comparison, in late 2017, an 813,000-square-foot Amazon facility sold for $73.4 million as part of a two-building purchase along I-15 at Lamb Boulevard.