LAS VEGAS – NAIOP Southern Nevada, the Commercial Real Estate Development Association representing commercial real estate developers, owners and related professionals in office, industrial, retail and mixed-use real estate, announced its support this week for the Southern Nevada Economic Development and Conservation Act introduced Wed., March 3 by U.S. Sen. Catherine Cortez-Masto (D-Nev.). This legislation will expand public lands conservation and economic development opportunities in Southern Nevada.
According to NAIOP Southern Nevada, this bill takes into consideration sustainable and efficient growth, economic development, recreation, preservation and conservation interests.
For many years, NAIOP Southern Nevada has advocated for a balanced approach to managing federal lands in Southern Nevada to attract industry and new business while also maintaining a high quality of life for local residents and visitors. NAIOP leaders realize Southern Nevada will require properly configured and sized land parcels in appropriate locations to remain competitive, while diversifying the local economy.
“In the absence of this vital legislation, Southern Nevada will soon face a land shortage stunting our economic development and diversification efforts,” said David Strickland, NAIOP Southern Nevada Chapter president. “Expansion of the disposal boundary, coupled with a regional plan that allows for efficient, sustainable development, keeps Southern Nevada competitive and able to attract new business, improving the quality of life for residents in Southern Nevada through increased employment opportunities, economic diversification and higher wages and incomes.”
In addition to being one of several organizations consulted during the development of the Southern Nevada Economic Development and Conservation Act, NAIOP commissioned a detailed study by local firm RCG Economics that evaluated whether short-term and long-term developable land constraints could negatively impact the region’s economic strength and resilience.
Highlights from the study include:
· To attract industry and new business, Southern Nevada will require properly configured and properly sized land parcels in appropriate locations to attract investment and businesses, and create well-paying jobs, while diversifying the local economy. Without this, Southern Nevada will be less economically competitive compared to other regions in the Western U.S.
· The supply of right-sized parcels for large-scale commercial development in the Las Vegas Valley is extremely scarce. The study shows there are now only 22 local parcels consisting of at least 60 acres, of which only 15 of those parcels are privately owned and could be potentially available for economic development purposes. There is a strong possibility that most if not all these parcels will be absorbed in the near- to mid-term.
· Southern Nevada is projected to require about 14,100 acres of developable employment land to support the approximately 390,000 jobs that are projected to be needed by 2035 to support the region’s population and to provide economic resiliency.
· The shortage of developable employment land parcels in the urbanized portion of Southern Nevada poses a significant challenge to future economic resilience and sustainability. If nothing is done to ensure that sufficient land is available to support the region’s economic development goals, Southern Nevada residents will likely see their quality of life diminished.
According to NAIOP Southern Nevada, the results of its study demonstrate the impact to Southern Nevada and its economy from competitive cost disadvantages due to land constraints. It also quantifies the potential future declines in economic output, employment, earnings and gross regional product (GRP) due to this land shortage. The study found that potential cost disadvantages of 3% to 5% would significantly and negatively affect Southern Nevada’s economy and the well-being of its residents and businesses.
About NAIOP Southern Nevada
NAIOP Southern Nevada is a chapter of NAIOP, the Commercial Real Estate Development Association, and it comprises nearly 600 members serving the Southern Nevada market. NAIOP is the leading organization for developers, owners and related professionals in office, industrial, retail and mixed-use real estate, with 20,000 members in North America. NAIOP advances responsible commercial real estate development and advocates for effective public policy. For more information, visit www.naiopnv.org. For more information on NAIOP corporate, visit www.naiop.org.