We asked Sperry Van Ness Director David Baird to give us the inside scoop on the commercial real estate market in Las Vegas.
“Investors in Las Vegas are clearly holding on longer, wanting to ride out the current economic downturns. As a result, I‘m seeing a reduction in inventory right now of around 75% from last year.”
There are fears about foreclosures, and tightening rules for financing. However, David explains, the sellers who are on the market in Vegas right now tend to be the sellers who are in trouble for other reasons:
Many are over-encumbered because they bought too high in the market.
Others are not managing the properties as well as needed.
Some REIT’s are selling off properties to buy their own stock for a higher return.”
So why are there buyers waiting in the wings for deals?
“There will clearly be a run up in prices in the near future in Vegas,” David predicts. Indicators include
$50 billion in improvements slated for the Strip
an influx of new people to fill those jobs, and
a slow-down in residential building.
“The construction industry has vanished here. There are not enough homes on the market to house these new workers. Now’s the perfect time to get in.”
Sperry Van Ness Commercial Real Estate Advisors is one of the nation’s largest commercial real estate investment brokerage firms. David Baird serves as Sr. Vice President and National Director of Multifamily in Las Vegas.
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