Poor economic times mean lower construction costs for developers
By Furniture Today Staff -- Furniture Today, March 31, 2003
Las Vegas — As strange as it may seem, World Market Center developers say they couldn't have asked for better timing for an economic downturn.
That's because bad times means good prices for big projects.
"Our general contractors are very pleased with the bids that we are receiving in connection with our construction," said Shawn Samson, co-managing partner of the $1 billion, 7.5 million-square-foot project. "Due to the current economic cycle and the fact that the World Market Center is the largest non-gaming commercial project in Las Vegas, we are benefiting from lower costs of labors and materials."
How much lower? Last year, WMC estimated the cost of construction and land for the 1.3 million-square-foot first-phase building at $150 million. Today, the estimate is $140 million.
"At the same time, it is widely expected that by January 2005, when our first market debuts, the economic cycle will be on an upswing again," Samson said. "So we are getting the benefit of both the down cycle during construction and the up cycle at the opening."
Samson said the same thing happened during his involvement in the initial development of the 4.2 million-square-foot Mall of America in Bloomington, Minn.
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