We have undertaken a construction cost analysis to understand typical construction costs for different asset types in Las Vegas. The analysis focuses on direct construction costs only, including hard costs per square foot, and excludes soft costs such as design fees, permits, insurance, furniture/fixtures/equipment (FF&E), and owner contingencies.

For each construction type, we have provided three benchmark cost ranges - low, medium, and high - based on recent market data. While these ranges represent typical costs observed in the Las Vegas market, it's important to note that actual project costs may fall outside these ranges due to factors such as unique design requirements, location, site conditions, material selections, market volatility, and project complexity.

Definitions:

Ground Up Construction: Direct hard costs for total new building construction, including all structural elements, building envelope, and interior build-out to a finished state ready for occupancy.

Tenant Improvement: Direct hard costs for interior renovation or build-out of existing shell space to meet specific tenant requirements, including partitions, finishes, and mechanical/electrical/plumbing modifications within the leased space boundary.

Core and Shell Only: Direct hard costs associated with base building construction including the complete exterior envelope, basic building systems, and unfinished interior limited to core elements such as elevators, stairs, and main utility distributions, without any tenant-specific improvements.

Soft costs will vary depending on the size of the project. Typically, the percentages for soft costs on a larger project with a higher value will be less than those on a smaller and lower value project due to economies of scale. The following table includes typical fees for various soft costs on projects in Las Vegas, based on a standard range of project variable.