The Related Cos. officially announced the demise of Icon, a twin-tower luxury condo project on Convention Center Drive.
Related insists that its $3.5 billion Las Ramblas Development inside the Harmon Corridor is moving forward. ICON buyers are rumored being sent to Las Ramblas to secure units.
The recent cancellation of Ivana / Liberty Tower and Icon has turned Vegas has shaken the market a bit. Everyone knew some of the projects would not fly but no one new which ones to bet on. There are key factors to look at when a project is announced. Developer, Branding and Financing are key indicators on the project getting built.
Six months ago, there were 50,000 to 70,000 units planned or ready to begin construction in Las Vegas, raising concerns about over supply. The reality is Vegas is an International Brand and is as strong as ever. If every project was succcessful, in time they would sell and continue to allow Las Vegas's transformation into a World-Class Metropolitan City. "The major factors include a decrease in market high-rise sales, lawsuits and rising construction costs, " Related said in a statement.
As the market continues to shakeout the weak from the strong, we see nature’s survival of the fittest taking over. Over the next few months we will see which projects leave the nest and fly.
Stay tuned.
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