Shea Commercial has built, and is in the process of building, several for-sale office parks since it entered the Las Vegas Valley in 2002.

Lucinda Stanley, Shea Commercial principal and broker, said a large amount of for-sale office space is poised to come online this year.

The reason for the buildup is in part because of a slowing of the permitting process in the county and various municipalities, Stanley said. That slowdown caused a backup in the development process, putting many projects in a holding pattern.

Now those projects are going forward — all at once.

"Just in the southwest there is 1 million square feet of for-sale office projects," Stanley said.

Shea Commercial had to put five of its own projects on hold while waiting for permits, which were finally pulled in December and January, Stanley said.

The company is now under construction with five for-sale office developments around the valley totaling 367,000 square feet and two others in the planning stage totaling 245,200 square feet. Those two projects, Durango Village and Cheyenne Valley Gateway, are still waiting for permits, Stanley said.

For-sale offices surged in popularity in Las Vegas and select markets nationwide about 18 months ago as interest rates dropped and real estate appreciation grew.

"We've seen a tremendous amount of interest in that sector of the office market," said Brian Gordon, a principal at Applied Analysis. "It's driven by a few things, including rising development costs."

While for-sale offices allow buyers to take advantage of appreciation, it gives developers the opportunity to sell and generate quick returns.

Gordon said that during 2005 his firm tracked 40 percent to 50 percent of new office space each quarter as for-sale product.

During the first quarter 2006, 867,100 square feet of office space was added to the Las Vegas market, of which 55 percent was for-sale office space, Applied Analysis reported.

"We've seen a lot of developers push toward the for-sale product, given that it's a different investment strategy -- it allows them to develop it and move on," he said. "Given all the elevated pricing, it isn't a bad strategy for many of these developers."

Many development companies, such as the Thomas & Mack Development Group and Plise, which have traditionally built for-rent offices, have entered the for-sale arena. In most cases development companies are building an office without a buyer or renter then selling it later.

Kenneth Smith, a partner at Glen Smith & Glen Development, said as a particular market heats up, more developers will throw their hat into the ring.

"I think Las Vegas is just past the frenzy and is beginning to be in the more moderate, sustainable stage," he said.

Smith has developed two large for-sale office parks, the Park at Warm Springs and the Park at Spanish Ridge in the Las Vegas Valley totaling about 350,000 square feet. He has another 700,000 square feet of office space under construction or in the planning stages throughout the valley.

Buyers come from all industries and backgrounds, from CPAs and doctors to advertising firms and philanthropic groups, he said.

"It's a trend that I think is here to stay, like the great American dream of owning your own home," Smith said. "For the small-business owner, the benefits are huge."

Smith said that besides the tax benefits, owning a building affords the owner appreciation and a built-in nest egg for the long term. He said rents will continue to go up in the valley but a mortgage will likely remain steady over the long term. Owning a building can provide pride of ownership and even rental income for those who rent out the balance of their space, he said.

"It's kind of a no-brainer -- ou have to pay for it one way or another," Smith said.

Stanley said buyers, on average, purchase either a 2,500 square foot space or a 5,000 square foot space.

She said because of land and construction costs, after the coming wave of for-sale office product, the single story office parks will likely be a thing of the past.

"We're looking at going vertical — higher than two stories," she said.