Las Vegas Sun

March 28, 2024

real estate column:

Downturn depletes ranks of Las Vegas millionaires

Only Orlando, Fla., had a steeper decline in its percentage of millionaires than Las Vegas in 2008, according to Capgemini, a consulting firm that publishes U.S. Metro Wealth Index.

The percentage of local millionaires declined 38 percent in 2008, second only to Orlando’s 42 percent. Phoenix was third, losing 34 percent of its millionaires, according to Capgemini.

The firm said it is telling that the areas where the millionaire population declined the most is places where it had grown rapidly in preceding years. Most of the declines were attributed to real estate declines and other factors such as a drop in tourism in 2008, said William Sullivan, Capgemini Financial Services’ head of global financial services and market intelligence.

Overall, the number of the nation’s millionaires declined 18.5 percent in 2008. Millionaires are defined as those with $1 million or more in investable assets, not including primary residences.

Those heavily invested in Las Vegas real estate have taken their lumps with housing prices down more than 50 percent since the peak in 2006. Commercial property and land values have fallen sharply as well.

New York has the most millionaires at 561,000, down 14 percent from 2007. Los Angeles ranked No. 2 with 208,000, down 18 percent. The firm won’t release the number of millionaires in Las Vegas, other than to give a percentage decline in 2008.

Home inventory

Applied Analysis reports that the number of properties on the Multiple Listing Service slid during the last week of July to 12,939, an 89-unit decline from the previous week. The inventory is down 9,400 units or 42 percent in the past year. Supply hasn’t been this low since 2005, the firm notes.

There are more pending sales than units listed, but many of those sales could fall apart, the firm says. The Multiple Listing Service has 13,650 units as contingent or pending and 6,405 units listed as short sales that require lender approval.

Medical office market

Medical offices fared better than the rest of the commercial market in Las Vegas during the second quarter.

CB Richard Ellis reports the average vacancy rate decreased slightly from 16.5 percent at the end of the first quarter to 16.1 percent at the end of the second quarter. Nearly 300,000 square feet of office space was leased throughout the valley in the second quarter.

The southwest valley was worst with a 35 percent vacancy rate. North Las Vegas had a 1.1 percent vacancy rate.

Lease rates for medical offices declined to $1.86 per square foot in the second quarter, down 50 cents from the first quarter. North Las Vegas had the highest lease rate at $2.43 per square foot during that time.

Landlords have increased tenant improvement allowances and free space to attract tenants, says Bruce Follmer, CB Richard Ellis’ medical office expert.

Medical office buildings are a sought-after investment because of the stability of the profession, Follmer says. Office buildings near medical facilities are preferred, but stand-alone buildings in well-located areas are being sought, he says.

In other news:

• Breslin Builders completed a commercial park near Dean Martin Drive and Southern Highlands Parkway. The Dean Martin Commercial Center cost $3.6 million for more than 26,000 square feet of commercial office and restaurant space.

• Cashman Equipment has launched a Web site to sell Caterpillar-branded merchandise. Cashman already sells the merchandise at its stores, but added www.getthegearonline.com.

• Elected to begin serving on the board of the Greater Las Vegas Association of Realtors in 2010 are Christine McNaught of Windermere Prestige Properties, Fafie Moore of Realty Executives of Nevada, Trish Nash of Exit Realty Unlimited, Cheryl Smith of Act 1 Realty and David Tina of Realty One Group. Those who will continue on the board in 2010 are Forrest Barbee of Prudential Americana Group, Heidi Kasama of Prudential Americana Group, Kolleen Kelley of Realty Executive of Nevada, Norma Opatik of Action Realty and Debbie Zois of Keller Williams Realty. Robin Civish of Prudential Commercial Real Estate was elected president of the group’s commercial alliance and will represent commercial real estate interests on the board. Scott Beaudry of Universal Realty was elected director of the Multiple Listing Service.

• CB Richard Ellis has been named facilities’ manager at the Cleveland Clinic Lou Ruvo Center for Brain Health.

• Gensler’s office in the Hughes Center has received a Leadership in Energy and Environmental Design (LEED) gold certification from the U.S. Green Building Council. It is the first LEED-certified space in the business park, the firm said. The space features angled walls in the reception area and a curvilinear wall that undulates through the design studio. Gensler is a design and planning firm.

Brian Wargo covers real estate and law for In Business Las Vegas and its sister publication, the Las Vegas Sun. He can be reached at 259-4011 or at [email protected].

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