Commercial Properties Making a Come Back
Recent indicators tell us that slowly, one by one, commercial properties in Las Vegas are being filled. It is unfortunate that commercial real estate tends to lag residential property markets by at least a year, and those prices have been bouncing back for a while. Finally the commercial market can say it’s dark night is over. Retail properties have been especially fortunate, seeing their vacancy rates fall from an all time high of nearly 20%. The restoration of the market can be traced to better employment opportunities in Las Vegas, which suffered about as much as you could. Nevertheless, shopping centers that formerly had 7 vacancies, now have one or two. Much of this is because rents are the best they’ve ever been and people are taking advantage of the great deals that can be had.
Commercial Owner Occupied Real Estate
Since the Las Vegas commercial real estate market has bottomed out, more and more business owners are choosing to buy their own properties. The main reason is that they know that since things are beginning to climb back up, they want to be able to lock in those rents while the getting is good. Lenders tend to appreciate it when owners occupy their own establishments because such borrowers tend to be more responsible than those who lease properties to others. Another good thing about owning your own property is that it can come in handy when you need more capital for your business. In a lot of ways, it’s a win-win situation. Finally, there are valid tax reasons for owning your own property because in some cases you can claim your lease as a liability.
Long Term Investment
One of the charms of buying commercial real estate in Las Vegas is not only the distressed properties. When the market was on the upswing, local officials were investing in tons of infrastructure, like highway exchanges and sanitation lines, to name just a couple. Much of this has remained unused since that time and it’s waiting for someone invest to reap the benefits.
The good thing is that Las Vegas, even though it has taken a sizable hit in recent years, has not and will not become another Detroit. The dry and warm Las Vegas climate will continue to attract newcomers, and there has not been a large scale exodus from the area. This means that investing now will surely pay off in the long term.
It's No Secret
It’s no secret that the Las Vegas commercial real estate market has experienced turmoil in some sectors in the past few years, but that doesn’t mean it’s finished. Fortunately–and despite what most people think–the Las Vegas economy isn’t all about gambling. Politicians, lenders and civic leaders are on the march to reshape the economic landscape by drawing manufacturing interests, non-gambling industry companies and a host of other commercial innovators like movie theater and shopping center developers to the area which means a lot of investment opportunities are opening up.
Most indicators show that the commercial real estate market has bottomed out in Las Vegas, and you can find properties at a fraction of what they were just a few years ago. Distressed properties are being assigned for disposition which can make for a relatively quick turnaround on investment. For those with longer term financial goals, there are numerous office buildings, shopping centers and other retail spaces available for acquisition. Diversification has made Las Vegas more attractive to new investors because of its ideal location in the west, and many companies are setting up shop here for their corporate headquarters on this side of the country. And don’t forget that our city still gets regular business from long term standbys like conventions and tourists.
All investors know that the Las Vegas residential home buyer market has taken the biggest hit in value in recent years, with many homes now in foreclosure or underwater. This situation arose because Las Vegas, like any boom town, has wildly fluctuating demographics, attracting more than its fair share of daring individualists looking to fulfill their dreams and move on. During the bubble, lax lending practices made buying irresistible for that group, even though they probably weren’t “buying types” in the traditional sense. But just because buying is more difficult, doesn’t mean that the people have stopped coming! True, lending now comes with more strings attached, but those people who were buying will now be renting, which means that residential rental properties are going to be the biggest investment opportunity for the foreseeable future. And now is the time to get in on the ground floor.
The days of flipping properties are over in Las Vegas, at least for the time being. Investors looking to lay down roots in Las Vegas are long term strategists with firmer goals and an eye to the future. Vanquish Realty is currently accepting clients who want to invest in a community where the opportunities are.
Call me for all your real estate needs.
Arlene Williams - Broker/Owner
A Nevada licensed real estate broker
7473 W. Lake Mead Blvd., Suite 100
Las Vegas, Nevada 89128