Expert: Vegas market attractive for investors

Jennifer Shubinski

Monday, Feb. 28, 2005 | 10:49 a.m.

The president and chief operating officer of NAI Global said the pace of Las Vegas' rapid growth is still difficult for people from outside the market to understand.

Jeffrey Finn, president and chief operating officer of NAI Global, was in town last week for the New Jersey-based company's convention. This is the second year in a row the convention, which draws brokers and clients from all over the world, has been in Las Vegas.

There were about 800 people at this year's convention, Finn said. Next year's convention, also planned for Las Vegas, is expected to draw 1,000 attendees.

Las Vegas continues to be an attractive market for investors because of its growth and the dynamics of its unique economy, Finn said.

He said despite the valley's growth, many people unfamiliar with the market still look at Las Vegas in a negative light as a place to do business or invest their money.

"The outside market doesn't understand it," Finn said. "There's also a disbelief in the magnitude of growth over time and how far it can go."

He said the valley's rapidly rising land prices has priced many people out of the market. That jump in land prices also makes some investors wonder if an investment in Las Vegas is a questionable investment.

One market that is catching many of the investors who are turning away from the valley is Phoenix, said John Filli, senior vice president of NAI Horizon in Phoenix.

"Obviously the land prices are a big driving force here (Las Vegas)," Filli said.

Despite land prices, Las Vegas Valley's commercial markets continue to attract investors because they continue to be strong.

He said many of the market segments, such as industrial and retail, are considered landlord's markets, while the valley's apartment market continues to be much stronger than in Phoenix.

Finn also said the area continues to be a strong commercial real estate market, and it has proven to the world that Las Vegas has a resilient and healthy economy, even when the nation as a whole isn't doing as well.