Around the State - April 2010

Around the State

Construction Costs Expected to Remain Stagnant in 2010

According to construction consultant Rider Levett Bucknall, a national average decrease in construction costs of approximately 0.5% from the previous quarter indicates construction costs should see little to no inflation this year.  In 2009 construction costs were down by 7.3 percent comparatively.  Las Vegas matches the national average from the previous quarter but saw an 8.5 percent decrease in 2009.

Northern Nevada Business Leaders Optimistic for 2010

According to a survey conducted by the Center for Regional Studies at the University of Nevada, Reno College of Business, 36 percent of Northern Nevada’s business leaders anticipate their firms’ revenue to increase over the next year.  Surprisingly, in the same survey, only 11 percent said that Nevada’s business tax advantage was what they most liked about doing business in the area and despite the economy, many business leaders find that qualified and skilled employees are still a challenge to find.

U.S. DOE Offers $1.37 Billion to BrightSource Energy for Ivanpah Project

The United States Department of Energy has offered nearly $1.4 billion in loan guarantees to BrightSource Energy, Inc. to support the financing of the Ivanpah Solar Electric Generating System.  When constructed, this will be the world’s largest solar energy project and will nearly double the amount of solar thermal electricity produced in the U.S. today.  Additionally, the project will produce enough energy to power 140,000 homes.

Southern Nevada Short Sales Increasing and Foreclosures Decreasing

A positive development for the Southern Nevada residential market, short sales increased to 22 percent in February from 21.1 percent in January.  Additionally, bank-owned homes decreased in February to 53 percent from 57.4 percent in January.  According to Rick Shelton, president of GLVAR, lenders are becoming more willing to work with homeowners and work out short sales as an alternative to foreclosing.

Source: Greater Las Vegas Association of Realtors (GLVAR)