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StumbleConditions worsen in Las Vegas commercial real estate market
Tuesday, July 6, 2010 | 12:37 p.m.
Sun Coverage
The vacancy rate in the commercial real estate market in Las Vegas continues to increase.
CB Richard Ellis reported the average retail vacancy rate increased slightly during the second quarter to 11.3 percent, up from 11.1 percent in the first quarter. Colliers International Las Vegas reported a 10.1 percent vacancy rate, up from 9.3 percent in the first quarter.
The office vacancy rate rose from 24.6 percent in the first quarter to 25.4 percent by the end of June, CB Richard Ellis reported. Colliers reported a 23.5 percent vacancy rate, which is up from 20.4 percent in the second quarter of 2009.
The industrial vacancy rate rose from 10.5 percent in the first quarter to 11 percent in the second quarter, CB Richard Ellis reported. Colliers reported a 15.4 percent vacancy rate, up from 15.1 percent in the first quarter.
“The rate of decline has started to slow but by no means are conditions improving,” said Brian Gordon, a principal with Applied Analysis. “The second half of 2010 will remain a challenge. There is no question that visitors and businesses are expected to remain cautious with their spending, and I don’t anticipate any significant job growth in the second half of 2010.”
Rents also continued to decline as landlord try to attract tenants.
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Not exactly rosie numbers that would indicate a recovery is in progress. I hope we're near the bottom as I can only hold my breath for so long.
Well this "shouldn't" come as a surprise to anyone...really. It's ALL connected.
Wow. I cannot imagine what it would be like to be walking in the shoes of people in Vegas right now.
things are much worse than this leads you to believe. I've seen many commercial projects sitting vacant for a couple years now. Virtually every shopping center has 30-50% stores empty. They kept building more commercial buildings long after the residential side had busted and they kept building for two years after it was obvious things had gone south. I think the financing for these projects gives them 5 years to lease before things go really south, so these projects have more time before the dung really hits the fan. We havn't seen the bottom in vegas yet. One commercial broker who is honest and has a radio program on the weekends says that there is well over a ten year supply of empty commerical property in vegas. Just as another article quotes a 21 year supply of empty condos---they will all be in foreclosure eventually or turned into timeshares or rentals.
At least I have a shot at getting unemployment insurance with some democrats. Just free market B.S. from the Republican'ts.
There is not a lot of perspective in these comments. Just because a shopping center was BUILT doesn't mean it will be FILLED, under any economic circumstances. Some people see a vacant shopping center or storefront and see failure; others see opportunity. You decide what you want to see.
I thought the stimulous money was suppose to stimulate the economy. What a waste of a trillion dollars!
If you folks are going to argue politics in EVERY news story (what a waste of time...), can you at least spell properly?
there are just SO MANY empty office spaces in that s. rainbow / 215 area. i just can't see the growth in vegas ever getting back to a rate those spaces will be full.
I think a lot of people are just electing to leave. I have to leave this year because of family not being able to work in their industry. I was going to purchase a home here, but I am constantly outbid by cash buyers, and I am too worried about the future here. We even have a water crisis! There is no good reason to stay unless you have a really good job. Its a shame...I really like this town!
Deeeeeeeeeeeep Recession
You think the housing forclosure is bad, commercial forcloseres are around the corner. Realtors are saying banks are holding foreclosed homes and not releasing them all at once for fear of dumping the market even further!!!
Its called (Over Built)
Its called (uncertainty),health care
Its called over (populated), people
Las Vegas will and always will be Sin City or Disneyland.
Its up to the Casino at this point to pull the economy up.
Thats all we have.
Once we get to 15 or 20% vacancy rate, we're gonna cliff dive. Good property during the boom years has met its Waterloo. Come back in twenty years and see what the wrecking ball hath wrought!
What about the Banks that were supposed to start lending again.
The fact that their sitting on all the money we gave them in the bailout in order to have the necessary cash on hand to satisfy the regulators has to have a hand in this issue. I know several people that could help the local economy if the Banks would open up the purse strings.
And I mean big time projects.
But the Banks are not playing by the rules.
Great point lvintrouble. Not much difference in the banks and the casinos. They don't give a crap about the general public, just about their bottom line. A self serving attitude is a path to nowhere.
YEAH, BABY. KEEP GIVING FREEBIE *GOVERNMENT* LOANS TO PEOPLE WHO WILL NEVER PAY A DIME OF IT BACK.
More government spending, more bailouts, more taxes, more 'entitlement' give-away programs.
Government needs to get OUT of the housing business altogether.
OUT OUT OUT.
Commercial, residential, industrial.
Liquidate those tax-money-holes Fannie Mae and Freddie Mac. Trillions of dollars are going to be wasted and never seen again.
One more time...
GET GOVERNMENT OUT OF THE HOUSING AND REAL ESTATE LOAN GUARANTEE BUSINESS.......
Here comes the other shoe for Vegas. In fact, there's another shoe ready to drop for the whole country. Hope you sold high in the first part of this year and put your money in something safe. Can you say double dip?
Was this because of "Acorn" and the "Community Reinvestment Act?"
Look at Boulder City. The growth cap makes sense for both residential and commercial.
We are in a long down turn - it is horrible for the young trying to start careers and for old ones who are losing jobs. A tough time - we all need to pull together and work toward the happy times which will come!
housing and commercial started to go bad in beginning of 2007. check it out look it up. that what online is use for. we over build. that its. investor made there money they moved on
How about filling most of the space with penny slot palaces?
Call them:
Slots-o-Fun 1
Slots-o-Fun 2
Slots-o-Fun 3
etc.
Slots-o-Fun 13,205
to Noindex.... If you want to talk about a waste of trillons $$.....look hard at "9 YEARS" of wasted money on a drummed up so called war. People need to start thinking about more than just the economy in Las Vegas when they talk about how things should be.This is a GLOBAL issue which extends far beyond our borders.Las Vegas is NOT in their own little bubble...they are part of a larger picture which people don't seem to grasp. I would be happy to see commerical real estate level off...that would be great.ONCE unemployment stops,once jobs come back,once housing stops dropping,once people can add tax money to the coffers and services stop being erased.So so many factors drive the how other areas respond...as in the real estate market.And please stop saying Obama did it,or Reid or any other republican or Demorcrat...this ALL happened a long long time ago and WE GOT GREEDY...it's the american way. We need to support local businesses when we can.Shop locally every chance you have and do your part,I am.
To Boomer111:
Now if you build them, (all those Slots-of-Funs)I will come back again. LOL I liked the ol'dump next to Circus Circus. I had a lot of fun at the dollar table and actually won there more than I lost. Just dont let anyone eat those hotdogs!
DC Dave
There was a time when a credit score of 670 could get you pretty much whatever you wanted,albeit a bit higher interest rate than your "perfect people",but now banks,commercial lenders,even leasing agents wont touch you
And they wander why the economy isnt progressing forward
I understand the profiling with the good ole FICO,but there is about .5% that have anything approaching the 720-800 range
Im not condoning deadbeats,but financial lenders have to loosen up to a degree if they want to see any growth,and im not referring to the 500 score that lenders were financing houses for,but for people in the 650-700 range
I went to look at a 3/4 ton on saturday,and was actually worried about the application,and whether or not it would be scrutinized,,sucks to be paranoid when you have done most things right financially
I went off on a tangent,sorry but i know a neighbour that was trying to lease a warehouse down off gibson/215,and they ran him through the ringer,and there is only 3 spaces occupied out of 14
peace out
The "real" value of property is much, much lower than any of the published figures.
We do not live in a free market country.
We live in a "manipulated market" WORLD.
Like the song says, 'Freedom is just a word...'
And negative and positive attitudes are irrelevant when REALITY comes knocking.
Come on, architect, get it right!
freedom's just ANOTHER word for nothing left to lose
Anyone who doubts this article just needs to drive down boulder hwy between Horizon and Lake Mead Blvd and look at the strip malls. Almost every single one has over 50% of its store fronts empty. They just built a brand new one at the corner of Boulder and Horizon, and as soon as the Dunken Doughnuts opened, it closed within a matter of months. The only store left is a Lee's Liquor store. Talk about a sign of the times. The only things thriving here are liquor stores and strip clubs!
Babyboomer...well put. If you think the commercial market is bad in Vegas..look at Phoenix or the Inland Empire, CA. Retail real estate is hurting everywhere...not just Vegas. The market is overbuilt because there was so much money being given to anyone that called themselves a "developer". Also, most of the new empty buildings were built or financed WAAAAAY before Obama took office. It is hilarious how some of you idiots blame Obama for the market overheating in 2005-2007.