No one really wants to be quoted but those contacted within the past three weeks have been somewhat outspoken on how slow it really has become in the Las Vegas commercial real estate market. Comments made in conversations with commercial real estate professionals in Southern Nevada gave me the impression that as the slow economic times drag on more people are becoming effected. Over the past month attitudes and opinions have become more concerned as an economic slowdown has been added on to with other possible disastrous events such as the gulf oil spill, border concerns in Arizona and the upcoming elections.
Las Vegans for the most part now take all this with hopeful anticipation of a turnaround coming. And, there will be one…….but just how big will it be and when will it come?
Activities in the housing market have taken shape to show signs of growth, however there has really been no significant construction in months, tax breaks for first time buyers brought in some new buyers but mostly investors who are paying cash for a great deal. Many of those homes may sit empty since construction jobs have gone away and other support jobs are decreasing in this economic turmoil. Commercial real estate activity has been spotty with most transactions being extensions of leases with give-backs of space to make the monthly payments less of a burden on companies.
A little growth in all sectors would be welcome. As time goes on and banks sort out the issues of foreclosures and short-sales we will be closer to a normal real estate market but under the current twists and turns we are nowhere near to normal. What is normal anyway? The heady days from 2003 to 2008 were not normal either with the rapid market growth and housing prices hitting all time highs. Hopefully in 3 to 5 years we will have found equilibrium and can then settle in for a normal stretch of slow, steady growth in housing, jobs and commercial development to support our region of Southern Nevada.
Vic Donovan, www.VegasCommercialBroker.com
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