As expected, attention is being given to the commercial real estate that will soon be in the shadow of what will be the new stadium for the NFL’s Las Vegas Raiders.
The team is expected to relocate for the 2019-20 season. Ground breaking on the stadium occurs this week.
The demand is only slowly ramping up in terms of industrial space. Owners have already set their prices a bit higher, evidenced by a 2-acre parcel for sale nearby that’s on the market for close to $8 million.
It may not sell for that much, but the price precedent has been set.
What comes next will be the retail.
Local franchise owners and small businesses in the midst of any sort of lease renewal will no doubt look at what’s available in the immediate vicinity of the 63,000-seat testament to professional sports largesse.
Residential real estate is directly impacted by what’s around it.
Las Vegas homes for sale often do better when located close to one of our countless large suburban retail centers.
In fact, it’s proven that homes close to a Starbucks or Trader Joes sell for more money.
How about near a football stadium?
Well, the jury is still out.
In a major study on real estate value within a two-mile radius of an NFL football stadium, Trulia.com found that trends vary rather dramatically.
For example, in Philadelphia, average sale prices are more than 40% higher around the stadium than comparable homes that are not located within a 2-mile radius. In Houston, rental property leases for 20.4% percent more when located near the Texans’ stadium.
On the contrary, home values in Inglewood, CA near the future home of the NFL’s LA Rams are almost 9% lower than comparable homes outside of the radius studied.
Homes near the stadiums of the Cowboys, Buffalo Bills, Seahawks, and Vikings, for example, are also worth less.
Obviously, a lot of factors determine the value of a home beyond the presence of a football stadium. A big factor is regional demographics. Was the stadium built in an area where land and home values were already depressed? This is the case when the volume of land needed could be had for much less than in other parts of a city.
We don’t know for sure what may happen to home values in Las Vegas after the team kicks off in a couple of years.
If it’s your goal to live near the stadium, maybe take some time to save more or better yet, start looking now, as finding the right home always takes longer than people realize.
All that said, one thing is for certain: the South Strip will once again become the place to be.