We’ve known for quite some since working for a new condominium developer back in 2005 and 2006 that building costs have been going up. Here is a recent story somewhat relevant that will give you a good idea what the demand for one particular building material is creating that you can read here.
It’s estimated that it costs the City of Las Vegas $1,000,000 a year due to this which unfortunately, is $1 Million dollars that is not being utilized somewhere better.
Make sure you read the comments from some Commercial Property Managers in Las Vegas.
Just yesterday, 4/17/08, we sufferred a loss of over $120,000 at a retain building here in the valley.
Ouch. It’s not just a problem in Las Vegas, it’s become such a problem in Chicago that Chicago now requires all buyers of scrap metal to keep detailed records of sellers and you can read about that here.
So.. next time you read somewhere that it is costing more to build then what is available to buy on the resale market, keep this in mind.
Paul Francis, ABR,CRS
Coldwell Banker Premier
Las Vegas Real Estate
702.592.3058
